N.D. Cent. Code § 26.1-36-22 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-22
26.1-36-22. Individual and group health insurance for dependents
Status: in_force

26.1-36-22. Individual and group health insurance for dependents

An individual or group health insurance policy may be extended to insure the individuals,

employees, or members with respect to their family members or dependents, including

dependents of dependents, or any class or classes thereof, subject to the following:

1. The premium for the insurance must be paid either from funds contributed by the

employer, union, association, or other person to whom the policy has been issued, or

from funds contributed by the covered persons, or from both. A policy on which no part

of the premium for the family members or dependents coverage is to be derived from

funds contributed by the covered persons must insure all eligible employees or

members with respect to their family members or dependents, or any class or classes

thereof.

2. An insurer may exclude or limit the coverage on any family member or dependent as

to whom evidence of individual insurability is not satisfactory to the insurer.

3. A policy that provides coverage for a dependent child of an employee or other member

of the covered group must provide such coverage up to a limiting age of twenty-two

years of age, if the dependent child physically resides with the employee or other

member and is chiefly dependent upon the employee or member for support and

maintenance.

4. A policy that provides that coverage for a dependent child of an employee or other

member of the covered group terminates upon attainment of the limiting age for

dependent children specified in the policy does not operate to terminate the coverage

of a dependent child while the child is a full-time student and has not attained the age

of twenty-six years or while the child is and continues to be both incapable of

self-sustaining employment by reason of intellectual disability or physical disability and

chiefly dependent upon the employee or member for support and maintenance,

provided proof of incapacity and dependency is furnished to the insurer by the

employee or member within thirty-one days of the child's attainment of limiting age and

subsequently as may be required by the insurer but not more frequently than annually

after the two-year period following the child's attainment of the limiting age.
N.D. Cent. Code § 26.1-37-16 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-16
26.1-37-16. Penalties
Status: in_force

26.1-37-16. Penalties

In addition to any other penalty provided by law, any person violating an order of the

commissioner after it has become final, and while the order is in effect, upon proof thereof to the

satisfaction of the court, shall forfeit and pay to this state a sum not to exceed two hundred fifty

dollars which may be recovered in a civil action, except that if the violation is found to be willful,

the amount of the penalty may be a sum not to exceed one thousand dollars. The

commissioner, after notice and hearing, may revoke or suspend the license or certificate of

authority of the person guilty of the violation.
N.D. Cent. Code § 26.1-33-36 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-36
26.1-33-36. Rights in life policies exempt from claims of creditors
Status: in_force

26.1-33-36. Rights in life policies exempt from claims of creditors

The surrender value of any life insurance policy which, upon the death of the insured, would

be payable to the spouse, children, or any relative of the insured dependent, or likely to be

dependent, upon the insured for support, is exempt absolutely from the claims of creditors of the

insured to the extent provided in section 28-22-03.1. No creditor of the insured, and no court or

officer of a court acting for any such creditors, may elect for the insured to have the life

insurance policy surrendered or in anywise converted into money, and no life insurance policy or

property right in the policy belonging to the holder, except for the value thereof in excess of the

amount provided by section 28-22-03.1, may be subject to seizure under any process of any

court under any circumstance.
N.D. Cent. Code § 26.1-31-05 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-05
26.1-31-05. Double insurance defined
Status: in_force

26.1-31-05. Double insurance defined

A double insurance exists when the same person is insured by several insurers separately

in respect to the same interest.
N.D. Cent. Code § 26.1-36.12-01 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-01
26.1-36.12-01. Definitions
Status: in_force

26.1-36.12-01. Definitions

As used in this chapter:

1. "Adverse determination" means a decision by a prior authorization review organization

relating to an admission, extension of stay, or health care service that is partially or

wholly adverse to the enrollee, including a decision to deny an admission, extension of

stay, or health care service on the basis it is not medically necessary.

2. "Appeal" means a formal request, either orally or in writing, to reconsider an adverse

determination regarding an admission, extension of stay, or health care service.

3. "Authorization" means a determination by a prior authorization review organization that

a health care service has been reviewed and, based on the information provided,

satisfies the prior authorization review organization's requirements for medical

necessity and appropriateness, and payment will be made for that health care service.

4. "Clinical criteria" means the written policies, written screening procedures, drug

formularies or lists of covered drugs, determination rules, determination abstracts,

clinical protocols, practice guidelines, medical protocols, and any other criteria or

rationale used by the prior authorization review organization to determine the

necessity and appropriateness of health care services.

5. "Emergency health care services" means health care services, supplies, or treatments

furnished or required to screen, evaluate, and treat an emergency medical condition.

6. "Emergency medical condition" means a medical condition that manifests itself by

symptoms of sufficient severity which may include 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 individual's health in

jeopardy, impairment of a bodily function, or dysfunction of any body part.

7. "Enrollee" means an individual who has contracted for or who participates in coverage

under a policy for that individual or that individual's eligible dependents.

8. "Health care services" means health care procedures, treatments, or services provided

by a licensed facility or provided by a licensed physician or within the scope of practice

for which a health care professional is licensed. The term includes the provision of

pharmaceutical products or services or durable medical equipment.

9. "Medically necessary" as the term applies to health care services means health care

services a prudent physician would provide to a patient for the purpose of preventing,

diagnosing, or treating an illness, injury, disease, or its symptoms in a manner that is:

a. In accordance with generally accepted standards of medical practice;

b. Clinically appropriate in terms of type, frequency, extent, site, and duration; and

c. Not primarily for the economic benefit of the health plans and purchasers or for

the convenience of the patient, treating physician, or other health care provider.

10. "Medication-assisted treatment" means the use of medications, commonly in

combination with counseling and behavioral therapies, to provide a comprehensive

approach to the treatment of substance use disorders. United States food and drug

administration-approved medications used to treat opioid addiction include methadone

and buprenorphine, alone or in combination with naloxone and extended-release

injectable naltrexone. Types of behavioral therapies include individual therapy, group

counseling, family behavior therapy, motivational incentives, and other modalities.

11. "Policy" means a health benefit plan as defined in section 26.1-36.3-01. The term does

not include medical assistance or the public employees retirement system uniform

group insurance program plans under chapter 54-52.1.

12. "Prior authorization" means the review conducted before the delivery of a health care

service, including an outpatient health care service, to evaluate the necessity,

appropriateness, and efficacy of the use of health care services, procedures, and

facilities, by a person other than the attending health care professional, for the purpose

of determining the medical necessity of the health care services or admission. The

term includes a review conducted after the admission of the enrollee and in situations

in which the enrollee is unconscious or otherwise unable to provide advance

notification. The term does not include a referral or participation in a referral process

by a participating provider unless the provider is acting as a prior authorization review

organization.

13. "Prior authorization review organization" means a person that performs prior

authorization for:

a. An employer with employees in the state who are covered under a policy;

b. An insurer that writes policies;

c. A preferred provider organization or health maintenance organization; or

d. Any other person that provides, offers to provide, or administers hospital,

outpatient, medical, prescription drug, or other health benefits to an individual

treated by a health care professional in the state under a policy.

14. "Urgent health care service" means a health care service for which, in the opinion of a

health care professional with knowledge of the enrollee's medical condition, the

application of the time periods for making a nonexpedited prior authorization might:

a. Jeopardize the life or health of the enrollee or the ability of the enrollee to regain

maximum function; or

b. Subject the enrollee to pain that cannot be managed adequately without the care

or treatment that is the subject of the prior authorization review.
N.D. Cent. Code § 26.1-28-05 — ND Code / Title 26.1 / Chapter 26.1-28 / Section 26.1-28-05
26.1-28-05. Penalty
Status: in_force

26.1-28-05. Penalty

Any person who violates this chapter is guilty of a class B misdemeanor.
N.D. Cent. Code § 26.1-03-06 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-06
26.1-03-06. Life insurance company may maintain contingency reserve - Limitations
Status: in_force

26.1-03-06. Life insurance company may maintain contingency reserve - Limitations

Any life insurance company doing business in this state may accumulate and maintain, in

addition to the capital and surplus contributed by its stockholders and in addition to an amount

equal to the net values of its policies computed according to the laws of the jurisdiction under

which it is organized, a contingency reserve not exceeding the following respective percentages

of the net values:

1. When the net values are less than one hundred thousand dollars, twenty percent

thereof or the sum of ten thousand dollars, whichever is the greater.

2. When the net values are greater than one hundred thousand dollars, the percentage

thereof measuring the contingency reserve decreases one-half of one percent for each

one hundred thousand dollars of the net values up to one million dollars and may

include one-half of one percent for each additional one million dollars up to ten million

dollars.

3. If the net values equal or exceed the last mentioned amount, the contingency reserve

may not exceed ten percent thereof.

As the net values of the policies increase and the maximum percentage measuring the

contingency reserve decreases, the company may maintain the contingency reserve already

accumulated, although for the time being, it may exceed the maximum percentage herein

prescribed. The company, however, may not add to the contingency reserve when the addition

will bring it beyond the maximum percentage prescribed in this section. For cause shown, the

commissioner may permit a company to accumulate and maintain a contingency reserve in

excess of the limit specified in this section for a prescribed period, not exceeding one year

under any one permission, by filing in the commissioner's office a decision stating the reasons

therefor and causing the same to be published in the commissioner's next annual report. This

section does not apply to any company doing exclusively a nonparticipating business.
N.D. Cent. Code § 26.1-15.1-08 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-08
26.1-15.1-08. Officers and members not personally liable for benefit contracts
Status: in_force

26.1-15.1-08. Officers and members not personally liable for benefit contracts

1. The officers and members of the supreme governing body or any subordinate body of

a society are not personally liable for any benefits provided by the society.

2. Any society may indemnify and reimburse any person for expenses reasonably

incurred by, and liabilities imposed upon, that person in connection with or arising out

of any action or proceeding, whether civil, criminal, administrative, or investigative, or

threat thereof, in which the person may be involved by reason of the fact that the

person is or was a director, officer, employee, or agent of the society or of any firm,

corporation, limited liability company, or organization which that person served in any

capacity at the request of the society. A person may not be so indemnified or

reimbursed in relation to any matter as to which the person is adjudged to be or has

been guilty of breach of a duty as a director, officer, employee, or agent of the society

unless the person acted in good faith for a purpose the person reasonably believed to

be in the best interests of the society and, in a criminal action or proceeding, had no

reasonable cause to believe that the conduct was unlawful. The determination whether

the conduct of such person met the standard required in order to justify indemnification

and reimbursement in relation to any matter may only be made by the supreme

governing body or board of directors by a majority vote of a quorum consisting of

persons who were not parties to the matter or by a court of competent jurisdiction. The

termination of any action or proceeding by judgment, order, settlement, conviction, or

upon a plea of no contest, does not in itself create a presumption that the person did

not meet the standard of conduct required in order to justify indemnification and

reimbursement. The foregoing right of indemnification and reimbursement is not

exclusive of other rights to which the person may be entitled as a matter of law and

inures to the benefit of that person's heirs, executors, and administrators.

3. A society may purchase and maintain insurance on behalf of any director, officer,

employee, or agent of the society who is or was serving at the request of the society

as a director, officer, employee, or agent of any other firm, corporation, limited liability

company, or organization against any liability asserted against or incurred by that

person in any such capacity or arising out of that person's status as such, regardless

of whether the society has the power to indemnify the person against such liability

under this section.
N.D. Cent. Code § 26.1-25-10 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10
26.1-25-10. Advisory organizations
Status: repealed

26.1-25-10. Advisory organizations

Repealed by S.L. 1991, ch. 302, § 26.
N.D. Cent. Code § 26.1-26-56 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-56
26.1-26-56. Insurance producer records - Exempt record
Status: in_force

26.1-26-56. Insurance producer records - Exempt record

The home address of any licensed insurance producer or insurance consultant received by

the commissioner is an exempt record as defined in section 44-04-17.1.
N.D. Cent. Code § 26.1-51-03 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-03
26.1-51-03. Insurance compliance self-critical analysis document not discoverable or admissible
Status: in_force

26.1-51-03. Insurance compliance self-critical analysis document not discoverable or

admissible.

Except as provided in sections 26.1-51-05, 26.1-51-06, and 26.1-51-07, an insurance

compliance self-critical analysis audit document is privileged information and is not discoverable

or admissible evidence in any legal action in any civil, criminal, or administrative proceeding.

The privilege is a matter of substantive law of this state and is not merely a procedural matter

governing administrative, civil, or criminal procedures in the courts of this state.
N.D. Cent. Code § 26.1-50-03 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-03
26.1-50-03. North Dakota low-risk incentive fund use
Status: reserved

26.1-50-03. North Dakota low-risk incentive fund use

The fund may be used only for making loans to low-risk businesses for primary sector

business projects in this state. A loan may not be approved or made by the fund without some

participation in the loan by the Bank of North Dakota. A loan from the fund may not be made to

an insurer. The governing board shall establish the rate of interest and terms of repayment for a

loan from the fund. Fifty percent of the amount loaned from the fund during the first year of a

biennium must be reserved solely for businesses in rural areas. The remainder loaned from the

fund may be used in urban or rural areas. For purposes of this section, "rural areas" means the

area of the state not including territory within the corporate limits of a city with a population of

twenty thousand or more.
N.D. Cent. Code § 26.1-26.8-19 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-19
26.1-26.8-19. Approval of examination by commissioner - Contents
Status: in_force

26.1-26.8-19. Approval of examination by commissioner - Contents

Each examination must be approved for use by the commissioner and must reasonably test

the applicant's knowledge as to the policies and transactions to be handled under the license

applied for, the duties and responsibilities of the licensee, and the pertinent insurance laws of

this state.
N.D. Cent. Code § 26.1-33-30 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-30
26.1-33-30. Minimum life policy language simplification standards
Status: in_force

26.1-33-30. Minimum life policy language simplification standards

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

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

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

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

ten-point type, one point leaded.

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

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

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

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

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

words.

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

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

score:

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

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

forms.

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

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

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

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

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

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

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

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

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

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

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

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

six-tenths.

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

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

ease score for the policy form.

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

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

spaces, are counted as one word.

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

headings and captions, is counted as a sentence.

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

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

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

containing fewer syllables may be used.

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

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

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

schedules, and tables.

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

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

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

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

the insurer identifies the language or terminology excepted by this subdivision

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

by this subdivision.

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

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

ease test.

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

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

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

commissioner may require the submission of further information to verify the

certification in question.

7. At the option of the life insurance company or fraternal benefit society, riders,

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

as separate forms or as part of the policy with which they may be used.
N.D. Cent. Code § 26.1-32-07 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-07
26.1-32-07. Waiver of defects in notice of loss
Status: in_force

26.1-32-07. Waiver of defects in notice of loss

All defects in a notice of loss or in preliminary proof of loss which the insured might remedy

and which the insurer omits to specify to the insured without unnecessary delay as grounds of

objection are waived.
N.D. Cent. Code § 26.1-53.1-17 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-17
26.1-53.1-17. Marketing requirements
Status: in_force

26.1-53.1-17. Marketing requirements

1. A discount plan organization may market directly or contract with other marketers for

the distribution of the organization's product.

2. The discount plan organization must have an executed written agreement with a

marketer before the marketer's marketing, promoting, selling, or distributing the

discount plan.

3. The agreement between the discount plan organization and the marketer must prohibit

the marketer from using advertising, marketing materials, brochures, and discount plan

cards without the discount plan organization's approval in writing.

4. The discount plan organization must be bound by and responsible for the activities of a

marketer which are within the scope of the marketer's agency relationship with the

organization, or are otherwise approved by or under the direction and control of the

organization.

5. Before use, a discount plan shall approve in writing any advertisements, marketing

materials, brochures, and discount cards used by marketers to market, promote, sell,

or distribute the discount plan.
N.D. Cent. Code § 26.1-06.2-09 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-09
26.1-06.2-09. Other laws - Conflicts - Meetings between the commissioner and the supervisor
Status: in_force

26.1-06.2-09. Other laws - Conflicts - Meetings between the commissioner and the

supervisor.

Notwithstanding any other provision of law, the commissioner may meet with a supervisor

appointed under this chapter and with the attorney or other representative of the supervisor,

without the presence of any other person, at the time of any proceeding or during the pendency

of any proceeding held under authority of this chapter to carry out the commissioner's duties

under this chapter or for the supervisor to carry out the duties under this chapter.
N.D. Cent. Code § 26.1-39-01 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-01
26.1-39-01. Rescission of fire insurance contract for alteration increasing risk
Status: in_force

26.1-39-01. Rescission of fire insurance contract for alteration increasing risk

An alteration in the use or condition of a thing insured from that to which it is limited by the

policy, if made without the consent of the insurer, by means within the control of the insured, and

if it increases the risk, entitles an insurer to rescind a fire insurance contract.
N.D. Cent. Code § 26.1-03.1-09 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-09
26.1-03.1-09. Supplemental provisions - Rules - Exemption
Status: in_force

26.1-03.1-09. Supplemental provisions - Rules - Exemption

1. This chapter is supplemental to any other laws of this state, and does not preclude or

limit any other powers or duties of the commissioner under these laws, including

chapters 26.1-06.1 and 26.1-06.2.

2. The commissioner may adopt rules necessary for the implementation of this chapter.

3. The commissioner may exempt from the application of this chapter any domestic

property and casualty insurer that:

a. Writes direct business only in this state;

b. Writes direct annual premiums less than an amount determined by the

commissioner; and

c. Assumes no reinsurance in excess of five percent of direct premium written.
N.D. Cent. Code § 26.1-06.1-28 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-28
26.1-06.1-28. Claims of holders of void or voidable rights
Status: in_force

26.1-06.1-28. Claims of holders of void or voidable rights

1. No claims of a creditor who has received or acquired a preference, lien, conveyance,

transfer, assignment, or encumbrance voidable under this chapter may be allowed

unless the creditor surrenders the preference, lien, conveyance, transfer, assignment,

or encumbrance. If the avoidance is effected by a proceeding in which a final judgment

has been entered, the claim may not be allowed unless the money is paid or the

property is delivered to the liquidator within thirty days from the date of the entering of

the final judgment, except that the court having jurisdiction over the liquidation may

allow further time if there is an appeal or other continuation of the proceeding.

2. A claim allowable under subsection 1 by reason of the avoidance, whether voluntary or

involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance,

may be filed as an excused last filing under section 26.1-06.1-34 if filed within thirty

days from the date of the avoidance, or within the further time allowed by the court

under subsection 1.
N.D. Cent. Code § 26.1-12.1-06 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-06
26.1-12.1-06. Hearing by commissioner - General duties
Status: in_force

26.1-12.1-06. Hearing by commissioner - General duties

The commissioner shall conduct a public hearing regarding a proposed reorganization plan

within sixty days after submission of a completed plan of reorganization to the commissioner,

unless the commissioner and reorganizing insurer agree to extend the sixty days or unless the

commissioner and the reorganizing insurer, based upon the facts and circumstances of the

transaction, agree that a hearing may be waived. If a hearing is held, the commissioner shall

give the reorganizing insurer at least twenty days' notice of the hearing. At the hearing, the

reorganizing insurer, its policyholders, and any other person whose interests may be affected by

the proposed reorganization may present evidence, examine and cross-examine witnesses, and

offer oral and written arguments and comments according to the procedure for contested cases

under chapter 28-32. The commissioner, in making the determination as to a plan of

reorganization under this chapter, shall consider whether:

1. The reorganizing insurer's surplus in regard to policyholders following a plan of

reorganization is reasonable in relation to the reorganizing insurer's outstanding

liabilities and adequate to its financial needs;

2. Under a plan of reorganization that materially affects the membership interest of

eligible members in the reorganizing insurer, the eligible members will receive a

membership interest in a mutual holding company commensurate with an equitable

share of the value of the reorganizing insurer;

3. After the reorganization, the reorganized insurance company will be able to satisfy the

requirements for the issuance of a certificate of authority to write the lines of insurance

for which it was licensed before the reorganization; and

4. The plan of the reorganization is fair, reasonable, and equitable to the policyholders of

the reorganizing insurer.
N.D. Cent. Code § 26.1-42.1-09 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-09
26.1-42.1-09. Exhaustion of other coverage
Status: in_force

26.1-42.1-09. Exhaustion of other coverage

1. Any person with a claim against an insurer, regardless of whether that insurer is a

member insurer under any provision in an insurance policy other than a policy of an

insolvent insurer which is also a covered claim, is required to exhaust first that

person's right under that policy. Any amount payable on a covered claim under this

chapter must be reduced by the amount of any recovery under the insurance policy.

2. Any person with a claim that may be recovered under more than one insurance

guaranty association or equivalent shall seek recovery first from the association of the

place of residence of the insured except that if the claim is a first-party claim for

damage to property with a permanent location, the person shall seek recovery first

from the association of the location of the property. Any recovery under this chapter

must be reduced by the amount of recovery from any other insurance guaranty

association or equivalent.
N.D. Cent. Code § 26.1-36.5-03 — ND Code / Title 26.1 / Chapter 26.1-36.5 / Section 26.1-36.5-03
26.1-36.5-03. Enrollment of children
Status: in_force

26.1-36.5-03. Enrollment of children

If a parent is required by a court or administrative order to provide health coverage for a

child and the parent is eligible for family health coverage through an insurer, the insurer shall:

1. Permit the parent to enroll under family coverage any child who is otherwise eligible for

coverage without regard to any open enrollment restrictions and subject to the

prohibited practices provisions of this chapter;

2. If a parent fails to provide health coverage for any child, enroll the child under family

coverage upon application by the child's other parent or by the department of health

and human services;

3. Upon receipt of the national medical support notice issued under section 14-09-08.20

from the employer:

a. Comply with the provisions of the national medical support notice;

b. Within forty business days of the date of the national medical support notice, take

appropriate action pursuant to the notice; and

c. Enroll the child, and the obligor if necessary, in the insurer's default plan, if any, if

required under subsection 2 of section 14-09-08.20; and

4. Not disenroll or eliminate coverage for any child unless the insurer is provided

satisfactory written evidence that:

a. The court or administrative order is no longer in effect; or

b. The child is or will be enrolled with comparable coverage that will take effect no

later than the effective date of disenrollment.
N.D. Cent. Code § 26.1-26.1-02 — ND Code / Title 26.1 / Chapter 26.1-26.1 / Section 26.1-26.1-02
26.1-26.1-02. Producer and company rehabilitation
Status: in_force

26.1-26.1-02. Producer and company rehabilitation

In an effort to avoid termination, a property and casualty insurance company and an

independent insurance producer may endeavor to reach mutual agreement on a written plan for

rehabilitation for a period of time agreed upon by them. Any written plan agreed upon must

identify the problem areas and specify what the insurance producer must do in order to avoid

termination.
N.D. Cent. Code § 26.1-22-22 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-22
26.1-22-22. Waiver of subrogation rights during construction
Status: in_force

26.1-22-22. Waiver of subrogation rights during construction

The office may waive any right of the fund to recover for damage sustained by any structure

as a result of fire or explosion caused by a contractor, its employees or agents, in the

performance of a contract for the alteration of, or the construction of an addition to, a building

insured under the fund.
N.D. Cent. Code § 26.1-29-09 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-09
26.1-29-09. Insurable interest in life or health insurance
Status: repealed

26.1-29-09. Insurable interest in life or health insurance

Repealed by S.L. 1987, ch. 357, § 2.
N.D. Cent. Code § 26.1-03.2-02 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-02
26.1-03.2-02. Risk-based capital reports
Status: in_force

26.1-03.2-02. Risk-based capital reports

1. On or before each March first, a domestic health organization shall prepare and submit

to the commissioner a report of its risk-based capital levels as of the end of the

calendar year just ended, in a form and containing such information as is required by

the risk-based capital instructions. In addition, a domestic health organization shall file

its risk-based capital report:

a. With the national association of insurance commissioners in accordance with the

risk-based capital instructions; and

b. With the insurance commissioner in any state in which the health organization is

authorized to do business, if the insurance commissioner has notified the health

organization of its request in writing, in which case the health organization shall

file its risk-based capital report not later than the later of:

(1) Fifteen days from the receipt of notice to file its risk-based capital report with

that state; or

(2) The filing date.

2. A health organization's risk-based capital must be determined in accordance with the

formula set forth in the risk-based capital instructions. The formula must take the

following into account, and may adjust for the covariance between, as determined in

each case by applying the factors in the manner set forth in the risk-based capital

instructions:

a. Asset risk;

b. Credit risk;

c. Underwriting risk; and

d. All other business risks and such other relevant risks as are set forth in the

risk-based capital instructions.

3. Net worth over the amount produced by the risk-based capital requirements contained

in this chapter and the formulas, schedules, and instructions referenced in this chapter

is desirable in the business of health insurance. Accordingly, health organizations

should seek to maintain capital above the risk-based capital levels required by this

chapter. Additional capital is used and useful in the insurance business and helps to

secure a health organization against various risks inherent in, or affecting, the

business of insurance and not accounted for or only partially measured by the

risk-based capital requirements contained in this chapter.

4. If a domestic health organization files a risk-based capital report that in the judgment

of the commissioner is inaccurate, then the commissioner shall adjust the risk-based

capital report to correct the inaccuracy and shall notify the health organization of the

adjustment. The notice must contain a statement of the reason for the adjustment. A

risk-based capital report as so adjusted is referred to as an "adjusted risk-based

capital report".
N.D. Cent. Code § 26.1-26-28 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-28
26.1-26-28. Time and place of examination - Grading of examination - Notice of results
Status: repealed

26.1-26-28. Time and place of examination - Grading of examination - Notice of

results.

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-22-08 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-08
26.1-22-08. Townships and school districts have option as to insurance on certain property
Status: repealed

26.1-22-08. Townships and school districts have option as to insurance on certain

property.

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-27.1-09 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-09
26.1-27.1-09. Administrative penalties
Status: in_force

26.1-27.1-09. Administrative penalties

1. A pharmacy benefits manager found to be in violation of this chapter or any rules

adopted under this chapter is subject to:

a. A monetary penalty of up to ten thousand dollars per violation;

b. Suspension or revocation of license; and

c. A civil penalty of up to fifty thousand dollars for a second or subsequent violation.

2. The commissioner may require a pharmacy benefits manager to provide restitution to

affected covered entities, pharmacies, or individuals for losses incurred as a result of

the violation.

3. A pharmacy benefits manager subject to penalties under this section is entitled to a

hearing conducted in accordance with chapter 28-32.
N.D. Cent. Code § 26.1-12-15 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-15
26.1-12-15. Corporations, limited liability companies, associations, boards, and estates may become member of mutual insurance company - Rights and liabilities
Status: in_force

26.1-12-15. Corporations, limited liability companies, associations, boards, and

estates may become member of mutual insurance company - Rights and liabilities.

Any public or private corporation, limited liability company, board, or association in this state

or elsewhere may make applications and enter into agreements for, and hold, policies in any

mutual insurance company organized under this chapter. Any officer, stockholder, trustee,

manager, member, governor, or legal representative of the corporation, limited liability company,

board, association, or the representative of an estate may be recognized as acting for or on its

behalf for the purpose of the membership but is not liable personally upon the insurance

contract by reason of acting in the representative capacity. The right of any corporation or

limited liability company organized under the laws of this state to participate as a member of any

mutual insurance company is declared to be incidental to the purpose for which the corporation

or limited liability company is organized and granted as fully as the rights and powers expressly

conferred upon it.
N.D. Cent. Code § 26.1-36-48 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-48
26.1-36-48. Short-term care insurance - Rules - Penalty
Status: in_force

26.1-36-48. Short-term care insurance - Rules - Penalty

1. "Short-term care" means any insurance policy, group certificate of insurance, or rider

advertised, marketed, offered, or designed to provide coverage for less than twelve

consecutive months for each covered period on an expense-incurred, indemnity,

prepaid, or other basis for one or more necessary or medically necessary diagnostic,

preventative, therapeutic, rehabilitative, maintenance, adult day care, or personal care

services provided in an insured's own home or a licensed facility setting other than an

acute care unit of a hospital.

2. Any policy or rider advertised, marketed, or offered as short-term care insurance must

comply with this section and all other applicable insurance laws to the extent the other

laws do not conflict with this section.

3. The insurance commissioner:

a. May adopt rules that include standards for full and fair disclosure setting forth the

manner, content, and required disclosures for the sale of short-term care

insurance policies, terms of renewability, initial and subsequent conditions of

eligibility, nonduplication of coverage provisions, coverage of dependents,

pre-existing conditions, termination of insurance, continuation or conversion,

probationary periods, limitations, exceptions, reductions, elimination periods,

requirements for replacement, recurrent conditions, incontestability, rescission,

return of policy provisions, and definitions of terms.

b. May adopt rules establishing loss ratio standards for short-term care insurance

policies; provided, that a specific reference to short-term care insurance policies

is contained in the rules.

c. May adopt 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 short-term care insurance.

4. In addition to any other penalties provided by the laws of this state, any insurer and

any insurance producer found to have violated any requirement of this title relating to

the regulation of short-term care insurance or the marketing of such insurance is

subject to a fine of up to three times the amount of any commission paid for each

policy involved in the violation or up to ten thousand dollars, whichever is greater.
N.D. Cent. Code § 26.1-10.2-02 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-02
26.1-10.2-02. Risk management framework
Status: in_force

26.1-10.2-02. Risk management framework

An insurer shall maintain a risk management framework to assist the insurer with

identifying, assessing, monitoring, managing, and reporting on the material and relevant risks of

the insurer. This requirement may be satisfied if the insurance group of which the insurer is a

member maintains a risk management framework applicable to the operations of the insurer.
N.D. Cent. Code § 26.1-02-21 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-21
26.1-02-21. Reinsurance - Treatment upon insolvency, liquidation, or dissolution
Status: in_force

26.1-02-21. Reinsurance - Treatment upon insolvency, liquidation, or dissolution

1. Credit may not be allowed, as an admitted asset or as a deduction from liability, to any

ceding insurer for reinsurance unless the reinsurance contract provides, in substance,

that in the event of the insolvency of the ceding insurer, the reinsurance must be

payable under one or more contracts reinsured by the assuming insurer on the basis

of reported claims allowed by the liquidation court or proof of payment of the claim by

a guaranty association without diminution because of the insolvency of the ceding

insurer. The payments must be made directly to the ceding insurer or to the ceding

insurer's domiciliary liquidator except if:

a. The contract or other written agreement specifically provides another payee of

such reinsurance in the event of the insolvency of the ceding insurer; or

b. The assuming insurer, with the consent of the direct insured, has assumed such

policy obligations of the ceding insurer as direct obligations of the assuming

insurer to the payees under the policies and in substitution for the obligations of

the ceding insurer to the payees.

2. Notwithstanding subsection 1, if a life and health insurance guaranty association has

elected to succeed to the rights and obligations of the insolvent insurer under the

contract of reinsurance, the reinsurer's liability to pay covered reinsured claims

continues under the contract of reinsurance, subject to the payment to the reinsurer of

the reinsurance premiums for such coverage. Payment for such reinsured claims may

only be made by the reinsurer pursuant to the direction of the guaranty association or

the guaranty association's designated successor. Any payment made at the direction

of the guaranty association or the guaranty association's designated successor by the

reinsurer will discharge the reinsurer of all further liability to any other party for the

claim payment.

3. The reinsurance agreement may provide that the domiciliary liquidator of an insolvent

ceding insurer shall give written notice to the assuming insurer of the pendency of a

claim against such ceding insurer on the contract reinsured within a reasonable time

after the claim is filed in the liquidation proceeding. During the pendency of the claim,

any assuming insurer may investigate the claim and interpose, at the assuming

insurer's own expense, in the proceeding in which the claim is to be adjudicated any

defenses the assuming insurer determines available to the ceding insurer, or the

ceding insurer's liquidator. The expense may be filed as a claim against the insolvent

ceding insurer as a class 7 claim under section 26.1-06.1-41 to the extent of a

proportionate share of the benefit which may accrue to the ceding insurer solely as a

result of the defense undertaken by the assuming insurer. If two or more assuming

insurers are involved in the same claim and a majority in interest elect to interpose one

or more defenses to the claim, the expense must be apportioned in accordance with

the terms of the reinsurance agreement as though the expense had been incurred by

the ceding insurer.
N.D. Cent. Code § 26.1-13-10 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-10
26.1-13-10. Members of county mutual company - Policyholders - Notice of meetings
Status: in_force

26.1-13-10. Members of county mutual company - Policyholders - Notice of meetings

Every person insured by a county mutual insurance company is a member while the policy

is in force. The member is entitled to one vote per policy only and must be notified of the time

and place of the holding of the meetings of the company by written notice or by an imprint on

the face of each policy, receipt, or certificate of renewal, as follows:

The assured is hereby notified that by virtue of this policy the assured is a member of the

____________ mutual insurance company, and that the annual meetings of the company

are held at its home office or designated location on the __________ day of __________ in

each year at __________ o'clock.

If the blanks in the notice are properly filled, the notice is sufficient.
N.D. Cent. Code § 26.1-36-04 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-04
26.1-36-04. Accident and health policy provisions
Status: in_force

26.1-36-04. Accident and health policy provisions

1. Except as provided in subsection 3, each accident and health insurance policy

delivered or issued for delivery to any person in this state must contain provisions

described in this section. The provisions contained in any policy may not be less

favorable in any respect to the insured or the beneficiary.

a. A provision that the policy, including the endorsements and the attached papers,

if any, constitutes the entire insurance contract and that no change in the policy is

valid until approved by an executive officer of the insurer and unless the approval

is endorsed on or attached to the policy.

b. A provision that no insurance producer has authority to change the policy or to

waive any of its provisions.

c. A provision that the validity of the policy may not be contested except for

nonpayment of premiums, after it has been in force for two years from its date of

issue; and that the validity of the policy may not be contested on the basis of a

statement made relating to insurability by any person covered under the policy

after the insurance has been in force for two years during the person's lifetime

unless the statement is contained in a written instrument signed by the person

making the statement; provided, however, that no such provision precludes the

assertion at any time of defenses based upon the person's ineligibility for

coverage under the policy.

d. A provision specifying the additional exclusions or limitations, if any, applicable

under the policy with respect to a disease or physical condition of a person, not

otherwise excluded from the person's coverage by name or specific description

effective on the date of the person's loss, which existed prior to the effective date

of the person's coverage under the policy. Any such exclusion or limitation may

only apply to a pre-existing disease or physical condition for which medical advice

or treatment was received by the person during the two-year period before the

effective date of the person's coverage. The exclusion or limitation may not apply

to loss incurred or disability commencing after the end of the two-year period

commencing on the effective date of the person's coverage.

e. A provision that the policyholder is entitled to a grace period of thirty-one days for

the payment of any premium due except the first, during which the policy

continues in force, unless the policyholder has given the insurer written notice of

discontinuance in advance of the date of discontinuance and in accordance with

the terms of the policy. The policy may provide that the policyholder is liable to the

insurer for the payment of a pro rata premium for the time the policy was in force

during the grace period.

f. A provision that if any renewal premium is not paid within the time granted the

insured for payment, a subsequent acceptance of premium by the insurer or by

any agent duly authorized by the insurer to accept the premium, without requiring

in connection therewith an application for reinstatement, reinstates the policy;

provided, however, that if the insurer or the agent requires an application for

reinstatement and issues a conditional receipt for the premium tendered, the

policy will be reinstated upon approval of the application by the insurer or, lacking

the approval, upon the forty-fifth day following the date of the conditional receipt

unless the insurer has previously notified the insured in writing of its disapproval

of the application. The policy must provide that the reinstated policy covers only

loss resulting from an accidental injury sustained after the date of reinstatement

and loss due to any sickness that begins more than ten days after the date. The

policy must provide that in all other respects the insured and insurer have the

same rights thereunder as they had under the policy immediately before the due

date of the defaulted premium, subject to any provisions endorsed thereon or

attached thereto in connection with the reinstatement. The provision may include

a statement that any premium accepted in connection with a reinstatement will be

applied to a period for which premium has not been previously paid, but not to

any period more than sixty days prior to the date of reinstatement. This statement

may be omitted from any policy which the insured has the right to continue in

force subject to its terms by the timely payment of premiums until at least age fifty

or in the case of a policy issued after age forty-four, for at least five years from its

date of issue.

g. A provision that written notice of claim must be given to the insurer within twenty

days after the occurrence or commencement of any loss covered by the policy.

Failure to give notice within this time does not invalidate nor reduce any claim if it

is shown not to have been reasonably possible to give the notice and that notice

was given as soon as was reasonably possible.

h. A provision that the insurer will furnish to the person making claim, or to the

policyholder for delivery to such person, the forms usually furnished for filing

proof of loss. If the forms are not furnished before the expiration of fifteen days

after the insurer receives notice of any claim under the policy, the person making

the claim is deemed to have complied with the requirements of the policy as to

proof of loss upon submitting within the time fixed in the policy for filing proof of

loss, written proof covering the occurrence, character, and extent of the loss for

which claims are made.

i. A provision that in the case of claim for loss of time for disability, written proof of

loss must be furnished to the insurer within ninety days after the commencement

of the period for which the insurer is liable, and that subsequent written proof of

continuance of the disability must be furnished to the insurer at such intervals as

the insurer may reasonably require, and that in the case of claim for any other

loss, written proof of loss must be furnished to the insurer within ninety days after

the date of loss. Failure to furnish the proof within this time does not invalidate

nor reduce any claim if it was not reasonably possible to furnish the proof within

that time, provided the proof is furnished as soon as reasonably possible and in

no event, except in the absence of legal capacity of the claimant, later than one

year from the time proof is otherwise required.

j. A provision that all benefits payable under the policy other than benefits for loss

of time will be payable according to the provisions of section 26.1-36-37.1, and

that, subject to due proof of loss, all accrued benefits payable under the policy for

loss of time will be paid not less frequently than monthly during the continuance

of the period for which the insurer is liable, and that any balance remaining

unpaid at the termination of such period will be paid as soon as possible after

receipt of proof of loss.

k. A provision that benefits for loss of life of the person insured will be payable to the

beneficiary designated by the insured person. However, if the policy contains

conditions pertaining to family status, the beneficiary may be the family member

specified by the policy terms. In either case, payment of these benefits is subject

to the provisions of the policy in the event no such designated or specified

beneficiary is living at the death of the insured person. All other benefits of the

policy are payable to the insured person. The policy may also provide that if any

benefit is payable to the estate of a person, or to a person who is a minor or

otherwise not competent to give a valid release, the insurer may pay the benefit,

up to an amount not exceeding five thousand dollars, to any relative by blood or

connection by marriage of the person deemed by the insurer to be equitably

entitled to the benefit.

l. A provision that the insurer may examine the individual for whom claim is made

when and so often as it may reasonably require during the pendency of claim

under the policy and also may make an autopsy in case of death if the autopsy is

not prohibited by law.

m. A provision that no action may be brought to recover on the policy prior to the

expiration of sixty days after proof of loss has been filed in accordance with the

requirements of the policy and that no such action may be brought at all unless

brought within three years from the expiration of the time which proof of loss is

required by the policy.

n. A provision that in the event of the death of an insured, the insurer will refund

within thirty days after notice to the insurer of the insured's death the portion of

the premium, fees, or other sum paid beyond the month of death after deducting

any claim for losses during the current term of the policy. This provision does not

apply if the insurer has a valid defense to the payment of benefits under the

policy.

2. Except as provided in subsection 3, an accident and health insurance policy delivered

or issued for delivery to any person in this state may not contain provisions respecting

the matters described in this subsection unless the provisions in the policy are not less

favorable in any respect to the insured or the beneficiary.

a. A provision that if the insured is injured or contracts sickness after having

changed occupation to one classified by the insurer as more hazardous than that

stated in the policy or while doing for compensation anything pertaining to an

occupation so classified, the insurer will pay only such portion of the indemnities

provided in the policy as the premium paid would have purchased at the rates

and within the limits fixed by the insurer for the more hazardous occupation. If the

insured changes occupation to one classified by the insurer as less hazardous

than that stated in the policy, the insurer, upon receipt of proof of the change of

occupation, will reduce the premium rate accordingly, and will return the excess

pro rata unearned premium from the date of change of occupation or from the

policy anniversary date immediately preceding receipt of proof, whichever is the

more recent. The provision must provide that the classification of occupational

risk and the premium rates will be such as have been last filed by the insurer

before the occurrence of the loss for which the insurer is liable or before date of

proof of change in occupation with the state official having supervision of

insurance in the state where the insured resided at the time the policy was

issued; but if the filing was not required, then the classification of occupational

risk and the premium rates will be those last made effective by the insurer in such

state before the occurrence of the loss or before the date of proof of change in

occupation.

b. A provision that if the age of the insured has been misstated, all amounts payable

under the policy will be such as the premium paid would have purchased at the

correct age.

c. A provision that if an accident or health or accident and health policy or policies

previously issued by the insurer to the insured are in force concurrently therewith,

making the aggregate indemnity for the type of coverage or coverages, in excess

of the maximum limit of indemnity or indemnities, the excess insurance is void

and all premiums paid for the excess will be returned to the insured or to the

insured's estate. In lieu of this type of provision, the policy may provide that

insurance effective at any one time on the insured under the policy and a like

policy or policies in the insurer is limited to the one such policy elected by the

insured, the insured's beneficiary, or the insured's estate, as the case may be,

and the insurer will return all premiums paid for all other such policies.

d. A provision that upon the payment of a claim under the policy, any premium then

due and unpaid or covered by any note or written order may be deducted from

the payment.

e. Subject to chapter 26.1-36.4, a provision that the insurer may cancel the policy at

any time by written notice delivered to the insured, or mailed to the insured's last

address as shown by the records of the insurer, stating when, not less than five

days thereafter, the cancellation is effective; and after the policy has been

continued beyond its original term the insured may cancel the policy at any time

by written notice delivered or mailed to the insurer, effective upon receipt or on

such later date as may be specified in the notice. The provision must provide that

in the event of cancellation, the insurer will return promptly the unearned portion

of any premium paid, and, if the insured cancels, the earned premium will be

computed by the use of the short-rate table last filed in the state where the

insured resided when the policy was issued. The provision must provide that if

the insurer cancels, the earned premium shall be computed pro rata. The

provision must provide that cancellation is without prejudice to any claim

originating prior to the effective date of cancellation.

f. A provision that any provision of the policy which, on its effective date, is in

conflict with the statutes of the state in which the insured resides on such date is

amended to conform to the minimum requirements of such statutes.

g. A provision that the insurer is not liable for any loss to which a contributing cause

was the insured's commission of or attempt to commit a felony or to which a

contributing cause was the insured's being engaged in an illegal occupation.

h. A provision that after the loss-of-time benefit of the policy has been payable for

ninety days, such benefit will be adjusted, as provided under this subdivision, if

the total amount of unadjusted loss-of-time benefits provided in all valid

loss-of-time coverage upon the insured should exceed a percentage of the

insured's earned income as provided in the policy; provided, however, that if the

information contained in the application discloses that the total amount of

loss-of-time benefits under the policy and under all other valid loss-of-time

coverage expected to be effective upon the insured in accordance with the

application for this policy exceeded an alternative percentage of the insured's

earned income as provided in the policy, at the time of the application, such

higher percentage will be used in place of the original percentage provided.

(1) The provision must provide that the adjusted loss-of-time benefit under the

policy for any month will be only such proportion of the loss-of-time benefit

otherwise payable under the policy as (a) the product of the insured's

earned income and the original percent, or, if higher, the alternative

percentage, bears to (b) the total amount of loss-of-time benefits payable for

such month under the policy and all other valid loss-of-time coverage on the

insured, without giving effect to the "overinsurance provision" in this or any

other coverage, less in both (a) and (b) any amount of loss-of-time benefits

payable under other valid loss-of-time coverage which does not contain an

"overinsurance provision".

(2) The provision must provide that in making the computation, all benefits and

earnings will be converted to a consistent basis weekly if the loss-of-time

benefit of the policy is payable weekly, or monthly if the benefit is payable

monthly, or otherwise, based upon the time period. If the numerator of the

foregoing ratio is zero or is negative, no benefit is payable.

(3) The provision must provide that in no event does the provision operate to

reduce the total combined amount of loss-of-time benefits for such month

payable under the policy and all other valid loss-of-time coverage below the

lesser of three hundred dollars and the total combined amount of

loss-of-time benefits determined without giving effect to any "overinsurance

provision", nor operate to increase the amount of benefits payable under the

policy above the amount which would have been paid in the absence of the

provision, nor take into account or operate to reduce any benefit other than

the loss-of-time benefit.

(4) The provision must provide that:

(a) "Earned income", except when otherwise specified, means the greater

of the monthly earnings of the insured at the time disability

commences and the insured's average monthly earnings for a period

of two years immediately preceding the commencement of the

disability, and does not include any investment income or any other

income not derived from the insured's vocational activities.

(b) "Overinsurance provision" includes this type of provision and any

other provision with respect to any loss-of-time coverage which may

have the effect of reducing an insurer's liability if the total amount of

loss-of-time benefits under all coverage exceeds a stated relationship

to the insured's earnings.

(5) This type of provision may be included only in a policy that provides a

loss-of-time benefit which may be payable for at least fifty-two weeks, which

is issued on the basis of selective underwriting of each individual

application, and for which the application includes a question designed to

elicit information necessary either to determine the ratio of the total

loss-of-time benefits of the insured to the insured's earned income or to

determine that such ratio does not exceed the percentage of earnings, not

less than sixty percent, selected by the insurer and inserted in lieu of the

blank factor above. The insurer may require, as part of the proof of claim,

the information necessary to administer this provision. If the application

indicates that other loss-of-time coverage is to be discontinued, the amount

of such other coverage must be excluded in computing the alternative

percentage in the first sentence of the overinsurance provision. The policy

must include a definition of "valid loss-of-time coverage" which may include

coverage provided by governmental agencies and by organizations subject

to regulation by insurance law and by insurance departments of this or any

other state or of any other country or subdivision thereof, coverage provided

for the insured pursuant to any disability benefits statute or any workforce

safety and insurance or employer's liability statute, benefits provided by

labor-management trusteed plans or union welfare plans or by employer or

employee benefit organizations, or by salary continuance or pension

programs, and any other coverage the inclusion of which may be approved.

3. If any requirement of this section is in whole or in part inapplicable to or inconsistent

with the coverage provided by a particular form of policy, the insurer, with the approval

of the commissioner, shall omit from the policy any inapplicable provision or part of a

provision, and shall modify any inconsistent provision or part of the provision in such

manner as to make the provision as contained in the policy consistent with the

coverage provided by the policy.

4. The provisions that are subject to subsections 1 and 2 must be printed in the

consecutive order of the requirements in such subsections or, at the option of the

insurer, any such provision may appear as a unit in any part of the policy, with other

provisions to which it may be logically related, provided the resulting policy is not in

whole or in part unintelligible, uncertain, ambiguous, abstruse, or likely to mislead a

person to whom the policy is offered, delivered, or issued.

5. A provision not subject to this section may not make a policy, or any portion of the

policy, less favorable in any respect to the insured or to the beneficiary than any

provision which is subject to this chapter.

6. Any policy of a foreign or alien insurer, when delivered or issued for delivery to any

person in this state, may contain any provision that is not less favorable to the insured

or the beneficiary than the provisions of this chapter and that is prescribed or required

by the law of the state under which the insurer is organized. Any policy of a domestic

insurer may, when issued for delivery in any other state or country, contain any

provision permitted or required by the laws of such other state or country.
N.D. Cent. Code § 26.1-37-12 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-12
26.1-37-12. Effect of credit life and health policy simplification standards on filed policies
Status: repealed

26.1-37-12. Effect of credit life and health policy simplification standards on filed

policies.

Repealed by S.L. 2001, ch. 278, § 12.
N.D. Cent. Code § 26.1-32-05 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-05
26.1-32-05. Notice of loss must be given promptly
Status: in_force

26.1-32-05. Notice of loss must be given promptly

In case of loss upon an insurance against fire, an insurer is exonerated if notice of the loss

is not given to the insurer by some person insured or entitled to the benefit of the insurance

without unnecessary delay.
N.D. Cent. Code § 26.1-06.1-20 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-20
26.1-06.1-20. Powers of liquidator
Status: in_force

26.1-06.1-20. Powers of liquidator

1. The liquidator shall have the power:

a. To appoint a special deputy or deputies and to determine their reasonable

compensation. The special deputy shall have all powers of the liquidator granted

by this section.

b. To employ employees and agents, legal counsel, actuaries, accountants,

appraisers, consultants, and such other personnel as the liquidator may deem

necessary to assist in the liquidation.

c. To appoint, with the approval of the court, an advisory committee of policyholders,

claimants, or other creditors including guaranty associations should such a

committee be deemed necessary. The committee shall serve without

compensation other than reimbursement for reasonable travel and per diem living

expenses. No other committee of any nature may be appointed by the

commissioner or the court in liquidation proceedings conducted under this

chapter.

d. To fix the reasonable compensation of employees and agents, legal counsel,

actuaries, accountants, appraisers, and consultants with the approval of the

court.

e. To pay reasonable compensation to persons appointed and to defray from the

funds or assets of the insurer all expenses of taking possession of, conserving,

conducting, liquidating, disposing of, or otherwise dealing with the business and

property of the insurer. In the event that the property of the insurer does not

contain sufficient cash or liquid assets to defray the costs incurred, the

commissioner may advance the costs so incurred out of any appropriation for the

maintenance of the insurance department. Any amounts so advanced for

expenses of administration must be repaid to the commissioner for the use of the

insurance department out of the first available moneys of the insurer.

f. To hold hearings, to subpoena witnesses to compel their attendance, to

administer oaths, to examine any person under oath, and to compel any person

to subscribe to their testimony after it has been correctly reduced to writing; and

in connection therewith to require the production of any books, papers, records,

or other documents the liquidator deems relevant to the inquiry.

g. To audit the books and records of all agents of the insurer insofar as those

records relate to the business activities of the insurer.

h. To collect all debts and moneys due and claims belonging to the insurer,

wherever located, and for the following purposes:

(1) To institute timely action in other jurisdictions, in order to forestall

garnishment and attachment proceedings against such debts;

(2) To do such other acts as are necessary or expedient to collect, conserve, or

protect its assets or property, including the power to sell, compound,

compromise, or assign debts for purposes of collection upon such terms and

conditions as deemed best; and

(3) To pursue any creditor's remedies available to enforce the liquidator's

claims.

i. To conduct public and private sales of the property of the insurer.

j. To use assets of the estate of an insurer under a liquidation order to transfer

policy obligations to a solvent assuming insurer, if the transfer can be arranged

without prejudice to applicable priorities under section 26.1-06.1-41.

k. To acquire, hypothecate, encumber, lease, improve, sell, transfer, abandon, or

otherwise dispose of or deal with, any property of the insurer at its market value

or upon such terms and conditions as are fair and reasonable. The liquidator shall

also have power to execute, acknowledge, and deliver any and all deeds,

assignments, releases, and other instruments necessary or proper to effectuate

any sale of property or other transaction in connection with the liquidation.

l. To borrow money on the security of the insurer's assets or without security and to

execute and deliver all documents necessary to that transaction for the purpose

of facilitating the liquidation. Any such funds borrowed may be repaid as an

administrative expense and have priority over any other claims in class one under

the priority of distribution.

m. To enter into such contracts as are necessary to carry out the order to liquidate,

and to affirm or disavow any contracts to which the insurer is a party.

n. To continue to prosecute and to institute in the name of the insurer or in the name

of the liquidator, any and all suits and other legal proceedings, in this state or

elsewhere, and to abandon the prosecution of claims the liquidator deems

unprofitable to pursue further. If the insurer is dissolved under section

26.1-06.1-19, the liquidator shall have the power to apply to any court in this state

or elsewhere for leave to substitute the liquidator for the insurer as plaintiff.

o. To prosecute any action which may exist in behalf of the creditors, members,

policyholders, or shareholders of the insurer against any officer of the insurer, or

any other person.

p. To remove any or all records and property of the insurer to the offices of the

commissioner or to another place as may be convenient for the purposes of

efficient and orderly execution of the liquidation. Guaranty associations and

foreign guaranty associations shall have such reasonable access to the records

of the insurer as is necessary for them to carry out their statutory obligations.

q. To deposit in one or more banks in this state any amounts of money required for

meeting current administration expenses and dividend distributions.

r. To invest all moneys not currently needed, unless the court orders otherwise.

s. To file any necessary documents for record in the office of any recorder or record

office in this state or elsewhere where property of the insurer is located.

t. To assert all defenses available to the insurer as against third persons, including

statutes of limitation, statutes of fraud, and the defense of usury. A waiver of any

defense by the insurer after a petition in liquidation has been filed shall not bind

the liquidator. Whenever a guaranty association or foreign guaranty association

has an obligation to defend any suit, the liquidator shall give precedence to such

obligation and may defend only in the absence of a defense by such guaranty

associations.

u. To exercise and enforce all the rights, remedies, and powers of any creditor,

shareholder, policyholder, or member, including any power to avoid any transfer

or lien that may be given by the general law and that is not included in section

26.1-06.1-25, 26.1-06.1-26, or 26.1-06.1-27.

v. To intervene in any proceeding, wherever instituted, that might lead to the

appointment of a receiver or trustee, and to act as the receiver or trustee

whenever the appointment is offered.

w. To enter into agreements with any receiver or commissioner of any other state

relating to the rehabilitation, liquidation, conservation, or dissolution of an insurer

doing business in both states.

x. To exercise all powers now held or hereafter conferred upon receivers by the

laws of this state not inconsistent with the provisions of this chapter.

2. a. If a company placed in liquidation issued liability policies on a claims-made basis,

which provided an option to purchase an extended period to report claims, then

the liquidator may make available to holders of such policies, for a charge, an

extended period to report claims as stated herein. The extended reporting period

may be made available only to those insureds who have not secured substitute

coverage. The extended period made available by the liquidator begins upon

termination of any extended period to report claims in the basic policy and ends

at the earlier of the final date for filing of claims in the liquidation proceeding or

eighteen months from the order of liquidation.

b. The extended period to report claims made available by the liquidator is subject

to the terms of the policy to which it relates. The liquidator shall make available

such extended period within sixty days after the order of liquidation at a charge to

be determined by the liquidator subject to approval of the court. The offer must be

deemed rejected unless the offer is accepted in writing and the charge is paid

within ninety days after the order of liquidation. No commissions, premium taxes,

assessments, or other fees may be due on the charge pertaining to the extended

period to report claims.

3. The enumeration of the powers and authority of the liquidator in this section may not

be construed as a limitation upon the liquidator, nor does it exclude in any manner the

liquidator's right to do such other acts not herein specifically enumerated or otherwise

provided for, as may be necessary or appropriate for the accomplishment of or in aid

of the purpose of liquidation.

4. Notwithstanding the powers of the liquidator as stated in subsections 1 and 2, the

liquidator shall have no obligation to defend claims or to continue to defend claims

subsequent to the entry of a liquidation order.
N.D. Cent. Code § 26.1-33.4-06 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-06
26.1-33.4-06. Examination
Status: in_force

26.1-33.4-06. Examination

1. The commissioner, when the commissioner deems it reasonably necessary to protect

the interests of the public, may examine the business and affairs of any licensee or

applicant for a license. The commissioner may order any licensee or applicant to

produce any records, books, files, or other information reasonably necessary to

ascertain whether such licensee or applicant is acting or has acted in violation of the

law or otherwise contrary to the interests of the public. The expenses incurred in

conducting any examination must be paid by the licensee or applicant.

2. In lieu of an examination under this chapter of any foreign or alien licensee licensed in

this state, the commissioner may, at the commissioner's discretion, accept an

examination report on the licensee as prepared by the commissioner for the licensee's

state of domicile or port-of-entry state.

3. Names of and individual identification data for all owners and insureds must be

considered private and confidential information and may not be disclosed by the

commissioner unless required by law.

4. Records of all consummated transactions and life settlement contracts must be

maintained by the provider for three years after the death of the insured and must be

available to the commissioner for inspection during reasonable business hours.

5. a. Upon determining that an examination should be conducted, the commissioner

shall issue an examination warrant appointing one or more examiners to perform

the examination and instructing the examiners as to the scope of the

examination. In conducting the examination, the examiner shall use methods

common to the examination of any life settlement licensee and should use those

guidelines and procedures set forth in an examiners' handbook adopted by a

national organization.

b. Every licensee or person from whom information is sought, its officers, directors,

and agents shall provide to the examiners timely, convenient, and free access at

all reasonable hours at its offices to all books, records, accounts, papers,

documents, assets, and computer or other recordings relating to the property,

assets, business, and affairs of the licensee being examined. The officers,

directors, employees, and agents of the licensee or person shall facilitate the

examination and aid in the examination so far as it is in their power to do so. The

refusal of a licensee, by its officers, directors, employees, or agents, to submit to

examination or to comply with any reasonable written request of the

commissioner is grounds for suspension or refusal of, or nonrenewal of any

license or authority held by the licensee to engage in the life settlement business

or other business subject to the commissioner's jurisdiction. Any proceedings for

suspension, revocation, or refusal of any license or authority must be conducted

pursuant to section 26.1-01-03.1.

c. The commissioner may issue subpoenas, administer oaths, and examine under

oath any person as to any matter pertinent to the examination. Upon the failure or

refusal of a 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.

d. When making an examination under this chapter, the commissioner may retain

attorneys, appraisers, independent actuaries, independent certified public

accountants, or other professionals and specialists as examiners, the reasonable

cost of which must be borne by the licensee that is the subject of the

examination.

e. This chapter does not limit the commissioner's authority to terminate or suspend

an examination in order to pursue other legal or regulatory action pursuant to the

insurance laws of this state. Findings of fact and conclusions made pursuant to

any examination are prima facie evidence in any legal or regulatory action.

f. This chapter does not limit the commissioner's authority to use and, if

appropriate, to make public any final or preliminary examination report, any

examiner or licensee workpapers, or other documents, or any other information

discovered or developed during the course of any examination in the furtherance

of any legal or regulatory action which the commissioner determines appropriate.

6. a. Examination reports must be composed of only facts appearing upon the books,

from the testimony of its officers or agents, or other persons examined

concerning its affairs, and such conclusions and recommendations as the

examiners find reasonably warranted from the facts.

b. No later than sixty days following completion of the examination, the examiner in

charge shall file with the commissioner a verified written report of examination

under oath. Upon receipt of the verified report, the commissioner shall transmit

the report to the licensee examined, together with a notice that shall afford the

licensee examined a reasonable opportunity of not more than thirty days to make

a written submission or rebuttal with respect to any matters contained in the

examination report and which shall become part of the report or to request a

hearing on any matter in dispute.

c. If the commissioner determines that regulatory action is appropriate as a result of

an examination, the commissioner may initiate any proceedings or actions

provided by law.

7. a. Names and individual identification data for all owners, purchasers, and insureds

must be considered private and confidential information and may not be disclosed

by the commissioner, unless the disclosure is to another regulator, is required

under law, or is allowed under section 26.1-03-19.4.

b. Except as otherwise provided in this chapter, all examination reports, working

papers, recorded information, documents, and copies thereof produced by,

obtained by, or disclosed to the commissioner or any other person in the course

of an examination made under this chapter, or in the course of analysis or

investigation by the commissioner of the financial condition or market conduct of

a licensee must be confidential by law and privileged, is not subject to the state's

open records laws, is not subject to subpoena, and is not subject to discovery or

admissible in evidence in any private civil action. The commissioner may use the

documents, materials, or other information in the furtherance of any regulatory or

legal action brought as part of the commissioner's official duties. The licensee

being examined may have access to all documents used to make the report.

8. a. An examiner may not be appointed by the commissioner if the examiner, either

directly or indirectly, has a conflict of interest or is affiliated with the management

of or owns a pecuniary interest in any person subject to examination under this

chapter. This section may not be construed to automatically preclude an

examiner from being:

(1) An owner;

(2) An insured in a life settlement contract or insurance policy; or

(3) A beneficiary in an insurance policy that is proposed for a life settlement

contract.

b. Notwithstanding the requirements of this subsection, the commissioner may

retain from time to time, on an individual basis, qualified actuaries, certified public

accountants, or other similar individuals who are independently practicing their

professions, even though these persons may from time to time be similarly

employed or retained by persons subject to examination under this chapter.

9. a. No cause of action arises nor may any liability be imposed against the

commissioner, the commissioner's authorized representatives, or any examiner

appointed by the commissioner for any statements made or conduct performed in

good faith while carrying out this chapter.

b. No cause of action arises, nor may any liability be imposed against any person

for the act of communicating or delivering information or data to the commissioner

or the commissioner's authorized representative or examiner pursuant to an

examination made under this chapter, if the act of communication or delivery was

performed in good faith and without fraudulent intent or the intent to deceive. This

subdivision does not abrogate or modify in any way any common-law or statutory

privilege or immunity heretofore enjoyed by any person identified in subdivision a.

c. A person identified in subdivision a or b is entitled to an award of attorney's fees

and costs if the person is the prevailing party in a civil cause of action for libel,

slander, or any other relevant tort arising out of activities in carrying out the

provisions of this chapter and the party bringing the action was not substantially

justified in doing so. For purposes of this section, a proceeding is "substantially

justified" if it had a reasonable basis in law or fact at the time that it was initiated.

10. The commissioner may investigate suspected fraudulent life settlement acts and

persons engaged in the business of life settlements.

11. The commissioner may charge for examinations as provided for under section

26.1-01-07.
N.D. Cent. Code § 26.1-06.2-03 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-03
26.1-06.2-03. Notice to comply with written requirements of commissioner - Noncompliance - Administrative supervision
Status: in_force

26.1-06.2-03. Notice to comply with written requirements of commissioner -

Noncompliance - Administrative supervision.

1. An insurer may be subject to administrative supervision by the commissioner if upon

examination or at any other time it appears in the commissioner's discretion that:

a. The insurer's condition renders the continuance of its business hazardous to the

public or to its insureds.

b. The insurer appears to have exceeded its powers granted under its certificate of

authority and applicable law.

c. The insurer has failed to comply with the applicable provisions of this title.

d. The business of the insurer is being conducted fraudulently.

e. The insurer gives its consent.

2. If the commissioner determines that the conditions set forth in subsection 1 exist, the

commissioner shall:

a. Notify the insurer of the commissioner's determination.

b. Furnish to the insurer a written list of the requirements to abate this

determination.

c. Notify the insurer that it is under the supervision of the commissioner and that the

commissioner is applying and effectuating the provisions of the chapter. The

action by the commissioner is subject to review pursuant to chapter 28-32.

3. If placed under administrative supervision, the insurer has sixty days, or another

period of time as designated by the commissioner, to comply with the requirements of

the commissioner subject to the provisions of this chapter.

4. If it is determined after notice and hearing that the conditions giving rise to the

supervision still exist at the end of the supervision period specified above, the

commissioner may extend the supervision period.

5. If it is determined that none of the conditions giving rise to the supervision exist, the

commissioner shall release the insurer from supervision.
N.D. Cent. Code § 26.1-46-01 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-01
26.1-46-01. Definitions
Status: in_force

26.1-46-01. Definitions

As used in this chapter:

1. "Commissioner" means the North Dakota insurance commissioner or the

commissioner, director, or superintendent of insurance in any other state.

2. "Completed operations liability" means liability arising out of the installation,

maintenance, or repair of any product at a site which is not owned or controlled by any

person who performs that work or any person who hires an independent contractor to

perform that work, but includes liability for activities which are completed or

abandoned before the date of the occurrence giving rise to the liability.

3. "Domicile", for purposes of determining the state in which a purchasing group is

domiciled, means:

a. For a corporation or limited liability company, the state in which the purchasing

group is incorporated or organized.

b. For an entity which is not a corporation or limited liability company, the state of its

principal place of business.

4. "Hazardous financial condition" means that, based on its present or reasonably

anticipated financial condition, a risk retention group, although not yet financially

impaired or insolvent, is unlikely to be able to do either of the following:

a. To meet obligations to policyholders with respect to known claims and reasonably

anticipated claims.

b. To pay other obligations in the normal course of business.

5. "Insurance" means primary insurance, excess insurance, reinsurance, surplus lines

insurance, and any other arrangement for shifting and distributing risk which is

determined to be insurance under the laws of this state.

6. a. "Liability" means legal liability for damages, including costs of defense, legal

costs and fees, and other claims expenses because of injuries to other persons,

damage to their property, or other damage or loss, including contractual claims

and expenses, to such other persons resulting from or arising out of either of the

following:

(1) Any business whether profit or nonprofit, trade, product, services including

professional services, premises, or operations.

(2) Any activity of any state or local government, or any agency or political

subdivision thereof.

b. The term does not include personal risk liability and an employer's liability with

respect to its employees other than legal liability under the federal Employer's

Liability Act [45 U.S.C. 51 et seq.].

7. "Personal risk liability" means liability for damages because of injury to any person,

damage to property, or other loss or damage resulting from any personal, familial, or

household responsibilities or activities, rather than from responsibilities or activities

referred to in subsection 6.

8. "Plan of operation or a feasibility study" means an analysis which presents the

expected activities and results of a risk retention group, including, at a minimum, all of

the following:

a. For each state in which it intends to operate, the coverages, deductibles,

coverage limits, rates, and rating classification systems for each line of insurance

the group intends to offer.

b. Historical and expected loss experience of the proposed members and national

experience of similar exposures to the extent that this experience is reasonably

available.

c. Pro forma financial statements and projections.

d. Appropriate opinions by a qualified independent casualty actuary, including a

determination of minimum premium or participation levels required to commence

operations and to prevent a hazardous financial condition.

e. Identification of management, underwriting and claims procedures, marketing

methods, managerial oversight methods, reinsurance agreements, and

investment policies.

f. Such other matters as may be prescribed by the commissioner for liability

insurance companies authorized by the insurance laws of the state in which the

risk retention group is chartered.

g. Information sufficient to verify that its members are engaged in businesses or

activities similar or related with respect to the liability to which such members are

exposed by virtue of any related, similar, or common business, trade, product,

services, premises, or operations.

h. Identification of each state in which the risk retention group has obtained, or

sought to obtain, a charter and license, and a description of its status in each

such state.

9. "Product liability" means liability for damages because of any personal injury, death,

emotional harm, consequential economic damage, or property damage, including

damages resulting from the loss of use of property, arising out of the manufacture,

design, importation, distribution, packaging, labeling, lease, or sale of a product, but

does not include the liability of any person for those damages if the product involved

was in the possession of such a person when the incident giving rise to the claim

occurred.

10. "Purchasing group" means any group which meets all of the following:

a. The group has as one of its purposes the purchase of liability insurance on a

group basis.

b. The group purchases insurance only for its group members and only to cover

their similar or related liability exposure, as described in subdivision c.

c. The group is composed of members whose business or activities are similar or

related with respect to the liability to which members are exposed by virtue of any

related, similar, or common business, trade, product, services, premises, or

operations.

d. The group is domiciled in any state.

11. "Risk retention group" means any corporation or other limited liability association:

a. Whose primary activity consists of assuming and spreading all, or any portion, of

the liability exposure of its group members.

b. Which is organized for the primary purpose of conducting the activity described

under subdivision a.

c. Which is chartered and licensed as a liability insurance company and authorized

to engage in the business of insurance under the laws of any state; or, before

January 1, 1985, was chartered or licensed and authorized to engage in the

business of insurance under the laws of Bermuda or the Cayman Islands and,

before such date, had certified to the insurance commissioner of at least one

state that it satisfied the capitalization requirements of such state, except that any

such group shall be considered to be a risk retention group only if it has been

engaged in business continuously since that date and only for the purpose of

continuing to provide insurance to cover product liability or completed operations

liability as such terms were defined in the Product Liability Risk Retention Act of

1981 before the date of the enactment of the Liability Risk Retention Act of 1986.

d. Which does not exclude any person from membership in the group solely to

provide for members of such a group a competitive advantage over such a

person.

e. Which has as its owners only persons who comprise the membership of the risk

retention group and who are provided insurance by such group, or has as its sole

owner an organization which has as its members only persons who comprise the

membership of the risk retention group and its owners only persons who

comprise the membership of the risk retention group and who are provided

insurance by such group.

f. Whose members are engaged in businesses or activities similar or related with

respect to the liability of which such members are exposed by virtue of any

related, similar, or common business trade, product, services, premises, or

operations.

g. Whose activities do not include the provision of insurance other than:

(1) Liability insurance for assuming and spreading all or any portion of the

liability of its group members.

(2) Reinsurance with respect to the liability of any other risk retention group or

any members of such other group which is engaged in business or activities

so that the group or member meets the requirement described in

subdivision f from membership in the risk retention group which provides

such reinsurance.

h. The name of which includes the phrase "risk retention group".

12. "State" means any state of the United States or the District of Columbia.
N.D. Cent. Code § 26.1-33-14 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-14
26.1-33-14. License required for variable life contracts
Status: in_force

26.1-33-14. License required for variable life contracts

No company may deliver or issue for delivery in this state variable life insurance contracts

unless it is licensed or organized to do a life insurance business in this state, and the

commissioner is satisfied that the company's condition or method of operation in connection

with the issuance of variable contracts will not render its operation hazardous to the public or its

policyholders in this state. In this connection, the commissioner shall consider, among other

things, the history and financial condition of the company; the character, responsibility, and

fitness of the officers and directors of the company; and the laws and rules under which the

company is authorized in the state of domicile to issue variable life insurance contracts. If the

company is a subsidiary of an admitted life insurance company, or affiliated with such company

through common management or ownership, it may be deemed by the commissioner to have

met the provisions of this section if it or the parent or the affiliated company meets these

requirements.
N.D. Cent. Code § 26.1-44-11 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-11
26.1-44-11. Enactment of surplus lines insurance multistate compliance compact
Status: repealed

26.1-44-11. Enactment of surplus lines insurance multistate compliance compact

Repealed by S.L. 2015, ch. 224, § 4.
N.D. Cent. Code § 26.1-10-07 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-07
26.1-10-07. Confidential treatment
Status: in_force

26.1-10-07. Confidential treatment

1. Any document, material, or other information in the possession or control of the North

Dakota insurance department which is obtained by or disclosed to the commissioner

or any other person in the course of an examination or investigation made pursuant to

section 26.1-10-06 and all information reported pursuant to subdivisions l and m of

subsection 2 of section 26.1-10-03 and sections 26.1-10-04 and 26.1-10-05 is

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

and not subject to discovery or admissible in evidence in any private civil action.

However, the commissioner may use the document, material, or other information in

the furtherance of any regulatory or legal action brought as a part of the

commissioner's official duties. The commissioner may not otherwise make the

document, material, or other information public without the prior written consent of the

insurer to which it pertains unless the commissioner, after giving the insurer and its

affiliates that would be affected thereby, notice and opportunity to be heard,

determines that the interests of policyholders, shareholders, or the public will be

served by the publication thereof, in which event the commissioner may publish all or

any part thereof in any manner the commissioner deems appropriate.

a. For purposes of the information reported and provided under subsections 13 and

14 of section 26.1-10-04, the commissioner shall maintain the confidentiality of

the group capital calculation and group capital ratio produced within the

calculation and any group capital information received from an insurance holding

company supervised by the federal reserve board or any United States

groupwide supervisor.

b. For purposes of the information reported and provided under subsection 15 of

section 26.1-10-04, the commissioner shall maintain the confidentiality of the

liquidity stress test results and supporting disclosures and any liquidity stress test

information received from an insurance holding company supervised by the

federal reserve board and non-United States groupwide supervisors.

2. Neither the commissioner nor any person that received any document, material, or

other information while acting under the authority of the commissioner or with whom

such document, material, or other information is shared under this chapter is permitted

or required to testify in any private civil action concerning any confidential document,

material, or information subject to subsection 1.

3. To assist in the performance of the commissioner's duties:

a. If the recipient agrees in writing to maintain the confidentiality and privileged

status of the document, material, or other information, and has verified in writing

the legal authority to maintain confidentiality, the commissioner may share any

document, material, or other information, including the confidential and privileged

document, material, or information subject to subsection 1, including proprietary

and trade secret documents and materials, with any other state, federal, and

international regulatory agency, the national association of insurance

commissioners, any third-party consultant designated by the commissioner, and

any state, federal, or international law enforcement authority, including members

of any supervisory college described in section 26.1-10-06.1;

b. Notwithstanding subdivision a, the commissioner may share a confidential and

privileged document, material, or information reported under subsection 12 of

section 26.1-10-04 only with a commissioner of a state having statutes or

regulations substantially similar to subsection 1 and who has agreed in writing not

to disclose the information;

c. The commissioner may receive any document, material, or information, including

any otherwise confidential and privileged document, material, or information,

including propriety and trade secret information, from the national association of

insurance commissioners and its affiliates and subsidiaries and from any

regulatory and law enforcement official of other foreign or domestic jurisdiction,

and shall maintain as confidential or privileged any document, material, or

information received with notice or the understanding the document, material, or

information is confidential or privileged under the laws of the jurisdiction that is

the source of the document, material, or information; and

d. The commissioner shall enter a written agreement with the national association of

insurance commissioners and any third-party consultant designated by the

commissioner governing sharing and use of information provided under this

chapter consistent with this subsection and which must:

(1) Specify procedures and protocols regarding the confidentiality and security

of information shared with the national association of insurance

commissioners or any third-party consultant designated by the

commissioner under this chapter, including procedures and protocols for

sharing by the national association of insurance commissioners with any

other state, federal, or international regulator. The written agreement must

provide the recipient agrees to maintain the confidentiality and privileged

status of the documents, materials, or other information and has verified in

writing the legal authority to maintain such confidentiality;

(2) Specify ownership of information shared with the national association of

insurance commissioners or a third-party consultant under this chapter

remains with the commissioner, and the national association of insurance

commissioner's or a third-party consultant's, as designated by the

commissioner, use of the information is subject to the direction of the

commissioner;

(3) Excluding documents, materials, or information reported under

subsections 13 and 14 of section 26.1-10-04, prohibit the national

association of insurance commissioners or a third-party consultant

designated by the commissioner from storing the information shared under

this chapter in a permanent database after the underlying analysis is

complete;

(4) Require prompt notice to be given to an insurer if the insurer's confidential

information in the possession of the national association of insurance

commissioners or a third-party consultant designated by the commissioner

under this chapter is subject to a request or subpoena to the national

association of insurance commissioners or a third-party consultant

designated by the commissioner for disclosure or production;

(5) Require the national association of insurance commissioners or third-party

consultants designated by the commissioner to consent to intervention by

an insurer in any judicial or administrative action in which the national

association of insurance commissioners or a third-party consultant

designated by the commissioner may be required to disclose confidential

information about the insurer shared with the national association of

insurance commissioners or a third-party consultant designated by the

commissioner under this chapter; and

(6) Documents, materials, or information reported under subsection 13 and 14

of section 26.1-10-04, in the case of an agreement involving a third-party

consultant, provide for notification of the identity of the consultant to the

applicable insurer.

4. The sharing of information by the commissioner under this chapter does not constitute

a delegation of regulatory authority or rulemaking, and the commissioner is solely

responsible for the administration, execution, and enforcement of this chapter.

5. Waiver of any applicable privilege or claim of confidentiality in any document, material,

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 subsection 3.

6. Any document, material, or other information in the possession or control of the

national association of insurance commissioners or a third-party consultant designated

by the commissioner under this chapter is confidential and privileged, not subject to

section 44-04-18, not subject to subpoena, and not subject to discovery or admissible

in evidence in any private civil action.

7. The group capital calculation and resulting group capital ratio required under

subsections 13 and 14 of section 26.1-10-04 and the liquidity stress test along with its

results and supporting disclosures required under subsection 15 of section 26.1-10-04,

are regulatory tools for assessing group risks and capital adequacy and group liquidity

risks, respectively, and are not intended as a means to rank insurers or insurance

holding company systems generally.

8. Except as otherwise required under this chapter, the making, publishing,

disseminating, circulating or placing before the public, or causing directly or indirectly

to be made, published, disseminated, circulated or placed before the public in a

newspaper, magazine or other publication, or in the form of a notice, circular,

pamphlet, letter or poster, or over any radio or television station or any electronic

means of communication available to the public, or in any other way as an

advertisement, announcement or statement containing a representation or statement

that would be misleading is prohibited when made regarding:

a. A group capital calculation;

b. A group capital ratio;

c. Liquidity stress test results;

d. Supporting disclosures for the liquidity stress test of any insurer or any insurer

group; or

e. Any component derived in the calculation by any insurer, broker, or other person

engaged in any manner in the insurance business.

9. Notwithstanding subsection 8, if any written publication contains a materially false

statement and the insurer demonstrates to the commissioner with substantial proof the

falsity or inappropriateness of the statement, the insurer may publish announcements

in a written publication, provided the sole purpose of the announcement is to rebut the

materially false statement. For this subsection to apply, the existence of any materially

false statement in a written publication must relate to at least one of the following

subject areas:

a. A group capital calculation;

b. A resulting group capital ratio;

c. An inappropriate comparison of any amount to an insurer's or insurance group's

group capital calculation or resulting group capital ratio;

d. A liquidity stress test result;

e. Supporting disclosures for the liquidity stress test; or

f. An inappropriate comparison of any amount to an insurer's or insurance group's

liquidity stress test result or supporting disclosures.
N.D. Cent. Code § 26.1-39.2-04 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-04
26.1-39.2-04. Post-loss assignment of rights or benefits
Status: in_force

26.1-39.2-04. Post-loss assignment of rights or benefits

A post-loss assignment of rights or benefits to a residential contractor under a property and

casualty insurance policy insuring residential real estate is subject to each of the following:

1. The assignment may authorize a residential contractor to be named as a copayee for

the payment of benefits under a property and casualty insurance policy covering

residential real estate.

2. The assignment must be provided to the insurer of the residential real estate within

five business days after execution.

3. The assignment must include a statement that the residential contractor made no

assurances the claimed loss will be fully covered by an insurance contract and must

include the following notice in capitalized fourteen-point type:

"YOU ARE AGREEING TO ASSIGN CERTAIN RIGHTS YOU HAVE UNDER YOUR

INSURANCE POLICY. THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE

SHOWN IN THIS ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE

INSURER. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE

SIGNING.

THE INSURER MAY ONLY PAY FOR THE COST TO REPAIR OR REPLACE

DAMAGED PROPERTY CAUSED BY A COVERED PERIL, SUBJECT TO THE

TERMS OF THE POLICY."

4. The assignment may not impair the interest of a mortgagee listed on the declarations

page of the property and casualty insurance policy that is the subject of the

assignment.

5. The assignment may not prevent or inhibit an insurer from communicating with the

named insured or mortgagee listed on the declarations page of the property and

casualty insurance policy that is the subject of the assignment.

6. The assignment must include a statement that the insured homeowner has the right to

cancel the assignment in accordance with subsection 1 of section 26.1-39.2-02.
N.D. Cent. Code § 26.1-02.1-02.1 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-02.1
26.1-02.1-02.1. Fraudulent insurance acts, interference, participation, and licensure of convicted felons prohibited
Status: in_force

26.1-02.1-02.1. Fraudulent insurance acts, interference, participation, and licensure of

convicted felons prohibited.

1. A person may not commit a fraudulent insurance act.

2. A person may not knowingly or intentionally interfere with the enforcement of the

provisions of this chapter or investigations of suspected or actual violations of this

chapter.

3. a. A person convicted of a felony involving dishonesty or breach of trust may not

participate in the business of insurance. The commissioner shall deny an

application for license under chapter 26.1-26, or shall revoke or shall refuse to

renew a license issued under chapter 26.1-26, if the commissioner finds the

applicant or licensee has been convicted of a felony involving dishonesty or

breach of trust.

b. A person in the business of insurance may not knowingly or intentionally permit a

person convicted of a felony involving dishonesty or breach of trust to participate

in the business of insurance.
N.D. Cent. Code § 26.1-05-31 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-31
26.1-05-31. Salaries and expenses of officers and agents of domestic life insurance company - Restrictions
Status: in_force

26.1-05-31. Salaries and expenses of officers and agents of domestic life insurance

company - Restrictions.

A domestic life insurance company may not:

1. Pay any salary, compensation, or emolument to any senior officer, trustee, or director

thereof, amounting in any one year to more than one hundred thousand dollars, unless

the payment thereof first is authorized by the board of directors of the company.

2. Grant any pension to any officer, director, or trustee thereof, or to any member of the

officer's, director's, or trustee's family after death, except that it may provide a pension

in pursuance of the terms of a retirement plan adopted by the board of directors and

approved by the commissioner for any person who is or has been a salaried officer or

employee of the corporation and who may retire by reason of age or disability.
N.D. Cent. Code § 26.1-10-05 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-05
26.1-10-05. Standards and management of an insurer with an insurance holding company system
Status: in_force

26.1-10-05. Standards and management of an insurer with an insurance holding

company system.

1. Transactions within an insurance holding company system to which an insurer subject

to registration is a party are subject to the following standards:

a. The terms must be fair and reasonable.

b. Agreements for cost-sharing services and management must include provisions

as required by rules adopted by the commissioner.

c. The books, accounts, and records of each party must clearly and accurately

disclose the precise nature and details of the transactions, including that

accounting information that is necessary to support the reasonableness of the

charges or fees to the respective parties.

d. The insurer's surplus as regards to policyholders following any dividends or

distributions to shareholder affiliates must be reasonable in relation to the

insurer's outstanding liabilities and adequate to its financial needs.

e. Charges or fees for services performed must be reasonable.

f. Expenses incurred and payment received must be allocated to the insurer in

conformity with statutory accounting practices consistently applied.

g. If an insurer subject to this chapter is deemed by the commissioner to be in a

hazardous financial condition as defined by North Dakota Administrative Code

chapter 45-03-13 or a condition that would be grounds for supervision,

conservation, or a delinquency proceeding, the commissioner may require the

insurer to secure and maintain a deposit, held by the commissioner, or a bond, as

determined by the insurer at the insurer's discretion, for the protection of the

insurer for the duration of the contracts or agreements, or the existence of the

condition for which the commissioner is required to secure and maintain the

deposit or the bond. In determining whether a deposit or a bond is required, the

commissioner must consider whether concerns exist with respect to the affiliated

person's ability to fulfill the contracts or agreements if the insurer were to be put

into liquidation. Once the insurer is deemed to be in a hazardous financial

condition or a condition that would be grounds for supervision, conservation or a

delinquency proceeding, and a deposit or bond is necessary, the commissioner

may determine the amount of the deposit or bond, not to exceed the value of the

contracts or agreements in any one year, and whether such deposit or bond

should be required for a single contract, multiple contracts, or a contract only with

specific persons.

h. All records and data of the insurer held by an affiliate are and remain the property

of the insurer, are subject to the control of the insurer, are identifiable, and are

segregated or readily capable of segregation, at no additional cost to the insurer,

from all other persons' records and data. This includes all records and data that

are otherwise the property of the insurer, in whatever form maintained, including

claims and claim files, policyholder lists, application files, litigation files, premium

records, rate books, underwriting manuals, personnel records, financial records,

or similar records within the possession, custody or control of the affiliate. At the

request of the insurer, the affiliate shall permit the receiver to obtain a complete

set of all records of any type that pertain to the insurer's business, obtain access

to the operating systems on which the data is maintained, obtain the software that

runs those systems either through assumption of licensing agreements or

otherwise, and restrict the use of the data by the affiliate if it is not operating the

insurer's business. The affiliate shall provide a waiver of any landlord lien or other

encumbrance to give the insurer access to all records and data in the event of the

affiliate's default under a lease or other agreement.

i. Premiums or other funds belonging to the insurer which are collected by or held

by an affiliate are the exclusive property of the insurer and are subject to the

control of the insurer. Any right of offset in the event an insurer is placed into

receivership shall be subject to chapter 26.1-06.1.

2. The following transactions involving a domestic insurer and any person in its insurance

holding company system, including an amendment or modification of an affiliate

agreement previously filed pursuant to this section, which is subject to any materiality

standards contained in subdivisions a through g, may not be entered unless the

insurer has notified the commissioner in writing of its intention to enter into the

transaction at least thirty days prior thereto, or a shorter period as the commissioner

may permit, and the commissioner has not disapproved it within that period. The notice

for an amendment or modification must include the reason for the change and the

financial impact on the domestic insurer. Within thirty days after a termination of a

previously filed agreement, informal notice must be reported to the commissioner for

determination of the type of filing required, if any.

a. Sales, purchases, exchanges, loans, or extensions of credit, or investments

provided the transactions are equal to or exceed:

(1) With respect to nonlife insurers, the lesser of three percent of the insurer's

admitted assets or twenty-five percent of surplus as regards policyholders

as of December thirty-first next preceding.

(2) With respect to life insurers, three percent of the insurer's admitted assets

as of December thirty-first next preceding.

b. Loans or extensions of credit to any person that is not an affiliate, if the insurer

makes loans or extensions of credit with the agreement or understanding that the

proceeds of the transactions, in whole or in substantial part, are to be used to

make loans or extensions of credit to, to purchase assets of, or to make

investments in any affiliate of the insurer making the loans or extensions of credit

provided the transactions are equal to or exceed:

(1) With respect to nonlife insurers, the lesser of three percent of the insurer's

admitted assets or twenty-five percent of surplus as regards policyholders

as of December thirty-first next preceding.

(2) With respect to life insurers, three percent of the insurer's admitted assets

as of December thirty-first next preceding.

c. Reinsurance agreements or modifications thereto, including:

(1) All reinsurance pooling agreements.

(2) Agreements in which the reinsurance premium or a change in the insurer's

liabilities, or the projected reinsurance premium or a change in the insurer's

liabilities in any of the next three years, equals or exceeds five percent of

the insurer's surplus as regards policyholders, as of December thirty-first

next preceding, including those agreements which may require as

consideration the transfer of assets from an insurer to a nonaffiliate, if an

agreement or understanding exists between the insurer and nonaffiliate that

any portion of such assets will be transferred to one or more affiliates of the

insurer.

d. All management agreements, service contracts, tax allocation agreements,

guarantees, and cost-sharing arrangements.

e. Any guarantee made by a domestic insurer; however, a guarantee that is

quantifiable as to amount is not subject to the notice requirements of this

subsection unless the guarantee exceeds the lesser of one-half of one percent of

the insurer's admitted assets or ten percent of surplus as regards policyholders

as of December thirty-first next preceding. Additionally, all guarantees that are not

quantifiable as to amount are subject to the notice requirements of this

subsection.

f. Any direct or indirect acquisition or investment in a person that controls the

insurer or in an affiliate of the insurer in an amount that, together with its present

holdings in such investments, exceeds two and one-half percent of the insurer's

surplus to policyholders. A direct or indirect acquisition or investment in a

subsidiary acquired pursuant to section 26.1-10-02, or authorized under any other

section of this chapter, or in a nonsubsidiary insurance affiliate that is subject to

this chapter, is exempt from this requirement.

g. Any material transactions, specified by rule, which the commissioner determines

may adversely affect the interests of the insurer's policyholders.

Nothing in this subsection may be deemed to authorize or permit any transactions

which, in the case of an insurer which is not a member of the same insurance holding

company system, would be otherwise contrary to law.

3. A domestic insurer may not enter transactions that are part of a plan or series of like

transactions with persons within the insurance holding company system if the purpose

of those separate transactions is to avoid the statutory threshold amount and thus

avoid the review that would occur otherwise. If the commissioner determines that the

separate transactions were entered over any twelve-month period for that purpose, the

commissioner may exercise the commissioner's authority under the penalty sections of

this chapter.

4. The commissioner, in reviewing transactions pursuant to subsection 2, shall consider

whether the transactions comply with the standards set forth in subsection 1 and

whether they may adversely affect the interests of the policyholders.

5. The commissioner must be notified within thirty days of any investment of the domestic

insurer in any one corporation if the total investment in that corporation by the

insurance holding company system exceeds ten percent of the corporation's voting

securities.

6. For purposes of this chapter, in determining whether an insurer's surplus as regards

policyholders is reasonable in relation to the insurer's outstanding liabilities and

adequate to meet its financial needs, the following factors, among others, must be

considered:

a. The size of the insurer as measured by its assets, capital and surplus, reserves,

premium writings, insurance in force, and other appropriate criteria.

b. The extent to which the insurer's business is diversified among the several lines

of insurance.

c. The number and size of risks insured in each line of business.

d. The extent of the geographical dispersion of the insurer's insured risks.

e. The nature and extent of the insurer's reinsurance program.

f. The quality, diversification, and liquidity of the insurer's investment portfolio.

g. The recent past and projected future trend in the size of the insurer's investment

portfolio.

h. The surplus as regards policyholders maintained by other comparable insurers.

i. The adequacy of the insurer's reserves.

j. The quality and liquidity of investments in affiliates. The commissioner may treat

the investment as a disallowed asset for purposes of determining the adequacy of

surplus as regards policyholders whenever in the commissioner's judgment the

investment so warrants.

7. A domestic insurer may not pay any extraordinary dividend or make any other

extraordinary distribution to its shareholders until thirty days after the commissioner

has received notice of the declaration thereof and has not within that period

disapproved the payment, or until the commissioner has approved the payment within

the thirty-day period.

8. For purposes of this section, an extraordinary dividend or distribution includes any

dividend or distribution of cash or other property, when the fair market value together

with that of other dividends or distributions made within the preceding twelve months

exceeds the lesser of:

a. Ten percent of the insurer's surplus as regards policyholders as of December

thirty-first next preceding; or

b. The net gain from operations of the insurer, if the insurer is a life insurer, or the

net income, if the company is not a life insurer, not including realized capital

gains, for the twelve-month period ending December thirty-first next preceding,

but shall not include pro rata distributions of any class of the insurer's own

securities.

9. In determining whether a dividend or distribution is extraordinary under subsection 8,

an insurer other than a life insurer may carry forward net income from the previous two

calendar years which has not already been paid out as dividends. This carry-forward

must be computed by taking the net income from the second and third preceding

calendar years, not including realized capital gains, less dividends paid in the second

and immediate preceding calendar years.

10. Notwithstanding any other provision of law, an insurer may declare an extraordinary

dividend or distribution which is conditional upon the commissioner's approval, and the

declaration confers no rights upon shareholders until:

a. The commissioner has approved the payment of the dividend or distribution; or

b. The commissioner has not disapproved the payment within the thirty-day period

referred to in subsection 7.

11. An affiliate that is a party to an agreement or contract with a domestic insurer that is

subject to subdivision d of subsection 2 shall be subject to the jurisdiction of any

supervision, seizure, conservatorship, or receivership proceedings against the insurer

and to the authority of any supervisor, conservator, rehabilitator, or liquidator for the

insurer appointed under chapters 26.1-06.1 and 26.1-06.2 for the purpose of

interpreting, enforcing, and overseeing the affiliate's obligations under the agreement

or contract to perform services for the insurer that are:

a. An integral part of the insurer's operations, such as management, administrative,

accounting, data processing, marketing, underwriting, claims handling,

investment, or any other similar functions; or

b. Essential to the insurer's ability to fulfill its obligations under insurance policies.

12. The commissioner may require that an agreement or contract under subdivision d of

subsection 2 for the provision of services in subdivision a and b specify the affiliate

consents to the jurisdiction as set forth in subsection 11.
N.D. Cent. Code § 26.1-15.1-07 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-07
26.1-15.1-07. Location of office - Meetings - Communications to members - Grievance procedures
Status: in_force

26.1-15.1-07. Location of office - Meetings - Communications to members - Grievance

procedures.

1. The principal office of any domestic society must be located in this state. The meetings

of its supreme governing body may be held in any state, district, province, or territory

in which the society has at least one subordinate lodge, or in any other location as

determined by the supreme governing body, and all business transacted at the

meetings is valid in all respects. The minutes of the proceedings of the supreme

governing body and of the board of directors must be in the English language.

2. a. A society may provide in its laws for an official publication in which any notice,

report, or statement required by law to be given to members, including notice of

election, may be published. Required reports, notices, and statements must be

printed conspicuously in the publication. If the records of a society show that two

or more members have the same mailing address, an official publication mailed

to one member is deemed to be mailed to all members at the same address

unless a member requests a separate copy.

b. Not later than June first of each year, a synopsis of the annual statement of the

society providing an explanation of the facts concerning the condition of the

society must be printed and mailed to each benefit member of the society or, in

lieu thereof, the synopsis may be published in the official publication of the

society.

3. A society may provide in its laws or rules for grievance or complaint procedures for

members.
N.D. Cent. Code § 26.1-26-47.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-47.1
26.1-26-47.1. Reciprocity
Status: in_force

26.1-26-47.1. Reciprocity

1. The commissioner shall waive any requirements for a nonresident license applicant

with a valid license from the insurance producer's home state, except the requirements

imposed by section 26.1-26-20, if the applicant's home state awards nonresident

licenses to residents of this state on the same basis.

2. A nonresident insurance producer's satisfaction of the insurance producer's home

state's continuing education requirements for licensed insurance producers constitutes

satisfaction of this state's continuing education requirements if the nonresident

insurance producer's home state recognizes the satisfaction of its continuing education

requirements imposed upon insurance producers from this state on the same basis.
N.D. Cent. Code § 26.1-22-03.1 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-03.1
26.1-22-03.1. North Dakota insurance reserve fund - Producers - Commission
Status: in_force

26.1-22-03.1. North Dakota insurance reserve fund - Producers - Commission

The North Dakota insurance reserve fund may use the services of producers licensed under

this title to assist policyholders. Any commission paid to a producer under this section must be

paid out of the assessment income of the fund and must be assessed against the policyholders

that benefit from the producer.
N.D. Cent. Code § 26.1-53.1-22 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-22
26.1-53.1-22. Notice of change in name or address
Status: in_force

26.1-53.1-22. Notice of change in name or address

Each discount plan organization shall provide the commissioner at least thirty days'

advance notice of any change in the discount plan organization's name, principal business

address, mailing address, or internet website address.
N.D. Cent. Code § 26.1-41-03 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-03
26.1-41-03. Suspension of coverage - Request by owner
Status: in_force

26.1-41-03. Suspension of coverage - Request by owner

Upon notice from the owner of a secured motor vehicle stating that the secured motor

vehicle will not be operated on public roads or highways during a period of not less than thirty

consecutive days, the basic no-fault insurer of the vehicle shall suspend on a pro rata basis or

shall offer a similar credit, to the extent requested by the owner, insurance coverage afforded

under the policy providing the security for payment of basic no-fault benefits and the liabilities

covered under the motor vehicle liability insurance for the secured motor vehicle until notified by

the owner that the coverage should be reinstated. The owner may not be required to surrender

the number plates during the policy suspension period. During the period of suspension,

subsections 1, 2, 4, 5, 6, and 7 of section 26.1-41-02 do not apply with respect to the secured

motor vehicle, but if the secured motor vehicle is operated by or with the permission of the

owner during the period of suspension, subsections 1, 2, 4, 5, and 7 of section 26.1-41-02

become applicable. This section does not apply to an owner of a secured motor vehicle for

which proof of financial responsibility is required under the financial responsibility laws of this

state.
N.D. Cent. Code § 26.1-47-11 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-11
26.1-47-11. Rules - Air ambulance
Status: in_force

26.1-47-11. Rules - Air ambulance

If an action of Congress, the president of the United States, or a federal agency allows the

state to regulate the rates, routes, or services of air ambulance providers, the commissioner

may adopt rules consistent with the action taken.
N.D. Cent. Code § 26.1-13-30 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-30
26.1-13-30. Cancellation of policies
Status: in_force

26.1-13-30. Cancellation of policies

A county mutual insurance company at any time may terminate or cancel any policy issued

by it by giving the insured not less than five days' written notice of the termination or

cancellation of the policy and returning to the insured pro rata any unearned premium which the

insured may have paid to the company.
N.D. Cent. Code § 26.1-51-09 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-09
26.1-51-09. Nonapplication of privilege
Status: in_force

26.1-51-09. Nonapplication of privilege

The self-critical analysis privilege set forth in this chapter does not extend to:

1. Documents, communications, data, reports, or other information expressly required to

be collected, developed, maintained, or reported to a regulatory agency pursuant to

this title, or other federal or state law;

2. Information obtained by observation or monitoring by any regulatory agency; or

3. Information obtained from a source independent of the insurance compliance audit.
N.D. Cent. Code § 26.1-36.11-02 — ND Code / Title 26.1 / Chapter 26.1-36.11 / Section 26.1-36.11-02
26.1-36.11-02. Required coverage for comprehensive medication management services
Status: in_force

26.1-36.11-02. Required coverage for comprehensive medication management

services.

1. A health carrier shall provide coverage for licensed pharmacists to provide

comprehensive medication management to eligible enrollees who elect to participate

in a comprehensive medication management program.

2. At least annually, the health carrier shall provide, in print, or electronically under the

provisions of section 26.1-02-32, notice of an enrollee's eligibility to receive

comprehensive medication management services from a pharmacist, delivered to the

eligible enrollee and the enrollee's designated primary care provider, if applicable, and

if at least one of the following criteria are met:

a. The enrollee is taking five or more chronic medications;

b. The enrollee was admitted to a hospital with one of the following diagnoses:

(1) Heart failure;

(2) Pneumonia;

(3) Myocardial infarction;

(4) Mood disorder; or

(5) Chronic obstructive pulmonary disorder; or

c. The enrollee has active diagnosis of comorbid diabetes and:

(1) Hypertension; or

(2) Hyperlipemia.

3. Comprehensive medication management services may be provided via telehealth as

defined in section 26.1-36-09.15 and may be delivered into an enrollee's residence.

4. The health carrier shall include an adequate number of pharmacists in the carrier's

network of participating pharmacy providers.

a. The participation of pharmacists and pharmacies in the health carrier network's or

health carrier's affiliate network's drug benefit does not satisfy the requirement

that health benefit plans include pharmacists in the health benefit plan's networks

of participating pharmacy providers.

b. For health benefit plans issued or renewed after December 31, 2024, health

carriers that delegate credentialing agreements to contracted health care facilities

shall accept credentialing for pharmacists employed or contracted by those

facilities. Health carriers shall reimburse facilities for covered services provided

by network pharmacists within the pharmacists' scope of practice per negotiations

with the facility.

5. The health carrier shall post electronically a current and accurate directory of

pharmacists who are participating pharmacy providers and eligible to provide

comprehensive medication management.

a. In making the directory available electronically, the health carrier shall ensure the

general public is able to view all of the current providers for a plan through a

clearly identifiable link or tab and without creating or accessing an account or

entering a policy or contract.

b. The health carrier shall ensure that one hundred percent of provider directory

entries are audited annually for accuracy and retain documentation of the audit to

be made available to the commissioner upon request.

c. The health carrier shall provide a print copy of current electronic directory

information upon request of an enrollee or a prospective enrollee.

d. The electronically posted directory must include search functionality that enables

electronic searches by each of the following:

(1) Name;

(2) Participating location;

(3) Participating facility affiliations, if applicable;

(4) Languages spoken other than English, if applicable; and

(5) Whether accepting new enrollees.

6. The requirements of this section apply to all health benefit plans issued or renewed

after December 31, 2024.
N.D. Cent. Code § 26.1-03.1-01 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-01
26.1-03.1-01. Definitions
Status: in_force

26.1-03.1-01. Definitions

As used in this chapter:

1. "Adjusted risk-based capital report" means a risk-based capital report that has been

adjusted by the commissioner in accordance with subsection 5 of section

26.1-03.1-02.

2. "Corrective order" means an order issued by the commissioner specifying corrective

actions that the commissioner has determined are required.

3. "Domestic insurer" means any insurer domiciled in this state, except a county mutual

insurance company.

4. "Foreign insurer" means any insurer that is licensed to do business in this state under

chapter 26.1-11 but is not domiciled in this state.

5. "Fraternal benefit society" means any insurer licensed under chapter 26.1-15.1.

6. "Life or health insurer" means any licensed life or health insurer or a licensed property

and casualty insurer writing only accident and health insurance.

7. "Negative trend" means, with respect to a life or health insurer or a fraternal benefit

society, negative trend over a period of time, as determined in accordance with the

trend test calculation included in the life or fraternal risk-based capital instructions.

8. "Property and casualty insurer" means any insurer licensed under chapter 26.1-05 or

26.1-11 but does not include monoline mortgage guaranty insurers, financial guaranty

insurers, and title insurers.

9. "Risk-based capital instructions" means the risk-based capital report, including

risk-based capital instructions adopted by the national association of insurance

commissioners, as such risk-based capital instructions may be amended by the

national association of insurance commissioners from time to time in accordance with

the procedures adopted by the national association of insurance commissioners.

10. "Risk-based capital level" means an insurer's company action level risk-based capital,

regulatory action level risk-based capital, authorized control level risk-based capital, or

mandatory control level risk-based capital where:

a. "Authorized control level risk-based capital" means the number determined under

the risk-based capital formula in accordance with the risk-based capital

instructions.

b. "Company action level risk-based capital" means, with respect to any insurer, the

product of two and its authorized control level risk-based capital.

c. "Mandatory control level risk-based capital" means the product of seventy

hundredths and the authorized control level risk-based capital.

d. "Regulatory action level risk-based capital" means the product of one and

one-half and its authorized control level risk-based capital.

11. "Risk-based capital plan" means a comprehensive financial plan containing the

elements specified in subsection 2 of section 26.1-03.1-03. If the commissioner rejects

the risk-based capital plan, and it is revised by the insurer, with or without the

commissioner's recommendation, the plan must be called the "revised risk-based

capital plan".

12. "Risk-based capital report" means the report required in section 26.1-03.1-02.

13. "Total adjusted capital" means the sum of:

a. An insurer's statutory capital and surplus as determined in accordance with

statutory accounting applicable to the annual financial statements required to be

filed under section 26.1-03-07; and

b. Such other items, if any, as the risk-based capital instructions may provide.
N.D. Cent. Code § 26.1-17.1-17 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-17
26.1-17.1-17. Protection against insolvency - Deposit
Status: in_force

26.1-17.1-17. Protection against insolvency - Deposit

1. a. Except as approved in accordance with subsection 3, each prepaid limited health

service organization shall, at all times, have and maintain tangible net equity

equal to the greater of:

(1) Fifty thousand dollars; or

(2) Two percent of the organization's annual gross premium income, up to a

maximum of the required capital and surplus of an accident and health

insurer.

b. A prepaid limited health service organization that has uncovered expenses in

excess of fifty thousand dollars, as reported on the most recent annual financial

statement filed with the commissioner, shall maintain tangible net equity equal to

twenty-five percent of the uncovered expense in excess of fifty thousand dollars

in addition to the tangible net equity required by subdivision a of subsection 1.

2. a. Each prepaid limited health service organization shall deposit with the

commissioner or with any organization or trustee acceptable to the commissioner

through which a custodial or controlled account is utilized, cash, securities, or any

combination of these or other measures that is acceptable to the commissioner in

an amount equal to twenty-five thousand dollars plus twenty-five percent of the

tangible net equity required in subsection 1; provided, however, that the deposit

may not be required to exceed one hundred thousand dollars.

b. The deposit shall be an admitted asset of the prepaid limited health service

organization in the determination of tangible net equity.

c. All income from deposits shall be an asset of the prepaid limited health service

organization. A prepaid limited health service organization may withdraw a

deposit or any part thereof after making a substitute deposit of equal amount and

value. Any securities must be approved by the commissioner before being

substituted.

d. The deposit must be used to protect the interests of the prepaid limited health

service organization's enrollees and to assure continuation of limited health care

services to enrollees of a prepaid limited health service organization that is in

rehabilitation or conservation. If a prepaid limited health service organization is

placed in receivership or liquidation, the deposit shall be an asset subject to

provisions of the liquidation act.

e. The commissioner may reduce or eliminate the deposit requirement if the prepaid

limited health service organization has made an acceptable deposit with the state

or jurisdiction of domicile for the protection of all enrollees, wherever located, and

delivers to the commissioner a certificate to such effect, duly authenticated by the

appropriate state official holding the deposit.

3. The commissioner may waive the requirements of subsections 1 and 2 upon a finding

that:

a. The prepaid limited health service organization has a net equity of at least five

million dollars; or

b. An entity having a net equity of at least five million dollars furnishes to the

commissioner a written commitment, which is acceptable to the commissioner, to

provide for the uncovered expenses of the prepaid limited health service

organization.
N.D. Cent. Code § 26.1-19-11 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-11
26.1-19-11. Prohibited practices
Status: in_force

26.1-19-11. Prohibited practices

1. A prepaid legal services organization, or representative thereof, may not cause or

knowingly permit the use of advertising, solicitation, or any form of coverage which is

false, fraudulent, misleading, or deceptive. For the purposes of this section:

a. A statement or item of information is false if it does not conform to fact in any

respect which is or may be significant to a participant, or a person considering

participating in a legal services plan.

b. A statement or item of information is misleading, whether or not it may be literally

untrue, if, in the context in which the statement is made or the item of information

is communicated, the statement or item of information may be reasonably

understood by a reasonable person, not possessing special knowledge regarding

legal services coverage, as indicating any benefit or advantage or the absence of

any exclusion, limitation, or disadvantage of possible significance to a participant,

or person considering participating in a legal services plan, if that benefit or

advantage or absence of limitation, exclusion, or disadvantage does not in fact

exist.

c. An evidence of coverage is deceptive if the evidence of coverage taken as a

whole and with consideration given to typography and format and language is

such as to cause a reasonable person, not possessing special knowledge

regarding legal services plans and evidence of coverage thereof, to expect

benefits, services, or changes which the evidence of coverage does not provide

or which the legal services plan issuing such evidence of coverage does not

regularly make available for participants covered under the evidence of coverage.

2. A participant's coverage may not be canceled or nonrenewed except for the failure to

pay the charge for that coverage, or for other reasons as may be set out in a rule

adopted by the commissioner.

3. A prepaid legal services organization may not use in its name, contracts, or literature

the words "insurance", "casualty", "surety", or "mutual", or any other words descriptive

of the insurance, casualty, or surety business or similar to the name or description of

any insurance or surety corporation doing business in this state.
N.D. Cent. Code § 26.1-20.1-03 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-03
26.1-20.1-03. License suspension, revocation, or refusal - Grounds
Status: in_force

26.1-20.1-03. License suspension, revocation, or refusal - Grounds

The commissioner may, after notice to the licensee and a hearing, suspend, revoke, or

refuse to continue or refuse to issue any license issued under this chapter if the commissioner

finds any of the following conditions:

1. The licensee acquired or attempted to acquire a license through misrepresentation or

fraud.

2. The licensee, in the conduct of affairs under the license, used fraudulent, coercive, or

dishonest practices, or has shown oneself to be incompetent, untrustworthy, or

financially irresponsible.

3. An officer, employee, stockholder, or partner of an applicant, who may materially

influence the applicant's conduct, does not meet the standards required by this

chapter.

4. The licensee violated or did not comply with this chapter or a lawful rule or order of the

commissioner.
N.D. Cent. Code § 26.1-36.12-14 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-14
26.1-36.12-14. Procedures for appeals of adverse determinations
Status: in_force

26.1-36.12-14. Procedures for appeals of adverse determinations

1. A prior authorization review organization shall have written procedures for appeals of

adverse determinations. The right to appeal must be available to the enrollee and the

attending health care professional.

2. The enrollee may review the information relied on in the course of the appeal, present

evidence and testimony as part of the appeals process, and receive continued

coverage pending the outcome of the appeals process.
N.D. Cent. Code § 26.1-39-08 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-08
26.1-39-08. Construction of standard fire policy
Status: in_force

26.1-39-08. Construction of standard fire policy

The standard policy is a valued policy as defined under section 26.1-30-03. An insurance

policy in the form prescribed by section 26.1-39-06 is subject to the rules of construction as to

its effect or the waiver of any of its provisions which would apply if the form had not been

prescribed.
N.D. Cent. Code § 26.1-07-18 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-18
26.1-07-18. Powers and duties of commissioner and deputies in receivership proceedings - Assessments - Actions
Status: repealed

26.1-07-18. Powers and duties of commissioner and deputies in receivership

proceedings - Assessments - Actions.

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-33-27 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-27
26.1-33-27. Determination of minimum values after January 1, 1987
Status: in_force

26.1-33-27. Determination of minimum values after January 1, 1987

1. This section, in addition to all other applicable sections of this law, applies to all

policies issued after December 31, 1986. Any cash surrender value available under a

life insurance policy in the event of default in a premium payment due on any policy

anniversary must be in an amount which does not differ by more than two-tenths of

one percent of either the amount of insurance, if the insurance is uniform in amount, or

the average amount of insurance at the beginning of each of the first ten policy years,

from the sum of:

a. The greater of zero and the basic cash value hereinafter specified; and

b. The present value of any existing paid-up additions less the amount of any

indebtedness to the insurer under the policy.

2. The basic cash value is equal to the present value, on such anniversary, of the future

guaranteed benefits which would have been provided for by the policy, excluding any

existing paid-up additions and before deduction of any indebtedness to the insurer, if

there had been no default, less the then present value of the nonforfeiture factors, as

defined in this chapter, corresponding to premiums that would have fallen due on and

after the anniversary. However, the effects on the basic cash value of supplemental life

insurance or annuity benefits or of family coverage, as described in section 26.1-33-19

or 26.1-33-21, whichever is applicable, shall be the same as are the effects specified

in section 26.1-33-19 or 26.1-33-21, whichever is applicable, on the cash surrender

values defined in that section.

3. The nonforfeiture factor for each policy year is an amount equal to a percentage of the

adjusted premium for the policy year, as defined in section 26.1-33-21 or 26.1-33-24,

whichever is applicable. Except as is required by subsection 4, the percentage:

a. Must be the same percentage for each policy year between the second policy

anniversary and the later of:

(1) The fifth policy anniversary; and

(2) The first policy anniversary at which there is available under the policy a

cash surrender value in an amount, before including any paid-up additions

and before deducting any indebtedness, of at least two-tenths of one

percent of either the amount of insurance, if the insurance is uniform in

amount, or the average amount of insurance at the beginning of each of the

first ten policy years; and

b. Must be such that no percentage after the later of the two policy anniversaries

specified in subdivision a may apply to fewer than five consecutive policy years.

4. No basic cash value may be less than the value which would be obtained if the

adjusted premiums for the policy, as defined in section 26.1-33-24, were substituted for

the nonforfeiture factors in the calculation of the basic cash value.

5. All adjusted premiums and present values referred to in this section must for a

particular policy be calculated on the same mortality and interest bases as are used in

demonstrating the policy's compliance with sections 26.1-33-18 through 26.1-33-28.

The cash surrender values referred to in this section include any endowment benefits

provided for by the policy.

6. Any cash surrender value available other than in the event of default in a premium

payment due on a policy anniversary, and the amount of any paid-up nonforfeiture

benefit available under the policy in the event of default in a premium payment must

be determined in manners consistent with the manners specified for determining the

analogous minimum amounts in sections 26.1-33-18 through 26.1-33-20, 26.1-33-24,

and 26.1-33-26. The amounts of any cash surrender values and of any paid-up

nonforfeiture benefits granted in connection with additional benefits such as those

listed in subsections 1 through 6 of section 26.1-33-26 must conform with the

principles of this section.
N.D. Cent. Code § 26.1-06.1-58 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-58
26.1-06.1-58. Subordination of claims for noncooperation
Status: in_force

26.1-06.1-58. Subordination of claims for noncooperation

If an ancillary receiver in another state or foreign country, whether called by that name or

not, fails to transfer to the domiciliary liquidator in this state any assets within the control of the

ancillary receiver, other than special deposits, diminished only by the expenses of the ancillary

receivership, if any, the claims filed in the ancillary receivership, other than special deposit

claims or secured claims, must be placed in the class of claims under subsection 7 of section

26.1-06.1-41.
N.D. Cent. Code § 26.1-27-10 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-10
26.1-27-10. Payment of claims
Status: in_force

26.1-27-10. Payment of claims

All claims paid by the administrator from funds collected on behalf of the insurer may be

paid only on drafts of and as authorized by the insurer.
N.D. Cent. Code § 26.1-46-05 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-05
26.1-46-05. Countersignatures not required
Status: in_force

26.1-46-05. Countersignatures not required

A policy of insurance issued to a risk retention group or any member of that group may not

be required to be countersigned except as otherwise provided in section 26.1-11-07.
N.D. Cent. Code § 26.1-10.1-01 — ND Code / Title 26.1 / Chapter 26.1-10.1 / Section 26.1-10.1-01
26.1-10.1-01. Report
Status: in_force

26.1-10.1-01. Report

1. Every insurer domiciled in this state shall file a report with the commissioner disclosing

material acquisitions and dispositions of assets or material nonrenewals, cancellations,

or revisions of ceded reinsurance agreements or material new ceded reinsurance

agreements unless the acquisitions and dispositions of assets or material

nonrenewals, cancellations, or revisions of ceded reinsurance agreements or material

new ceded reinsurance agreements have been submitted to the commissioner for

review, approval, or information purposes pursuant to other provisions of the insurance

code, laws, rules, or other requirements.

2. The report required in subsection 1 is due within fifteen days after the end of the

calendar month in which any of the foregoing transactions occur.

3. One complete copy of the report, including any exhibits or other attachments, must be

filed with:

a. The insurance department of the insurer's state of domicile; and

b. The national association of insurance commissioners.

4. All reports obtained by or disclosed to the commissioner under this chapter must be

given confidential treatment and are not subject to subpoena and must not be made

public by the commissioner, the national association of insurance commissioners, or

any other person, except to insurance departments of other states, without the prior

written consent of the insurer to which it pertains unless the commissioner, after giving

the insurer who would be affected notice and an opportunity to be heard, determines

that the interest of policyholders, shareholders, or the public will be served by

publication, in which event the commissioner may publish all or any part in the manner

the commissioner deems appropriate.
N.D. Cent. Code § 26.1-36-23 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-23
26.1-36-23. Continuation of group hospital, surgical, and major medical coverage after termination of employment or membership
Status: in_force

26.1-36-23. Continuation of group hospital, surgical, and major medical coverage

after termination of employment or membership.

A group policy or certificate of insurance or certificate on a master policy of a group as

defined by subsection 6 of section 26.1-02-05 delivered or issued for delivery in this state issued

by any insurance company, nonprofit health service corporation, health maintenance

organization, or any other insurer that provides hospital, surgical, or major medical expense

insurance or any accommodation of these coverages on an expense-incurred basis, but not a

policy that provides benefits for specific diseases or for accidental injuries only, must provide

that employees or members whose insurance under the group policy would otherwise terminate

because of termination of employment or membership are entitled to continue their hospital,

surgical, and major medical insurance under that group policy, for themselves and their eligible

dependents, subject to all of the group policy's terms and conditions applicable to those forms of

insurance and to the following conditions:

1. Continuation is only available to an employee or member who has been continuously

insured under the group policy, and for similar benefits under any group policy which it

replaced, during the entire three-month period ending with the termination.

2. Continuation is not available for any person who is covered by Medicare. Neither is

continuation available for any person who is covered by any other insured or

uninsured arrangement which provides hospital, surgical, or medical coverages for

individuals in a group and under which the person was not covered immediately prior

to the termination.

3. Continuation need not include dental, vision care, or prescription drug benefits or any

other benefits provided under the group policy in addition to its hospital, surgical, or

major medical benefits.

4. An employee or member who wishes continuation of coverage must request the

continuation in writing within the ten-day period following the later of the date of

termination, or the day the employee is given notice of the right of continuation by

either the employer or the group policyholder. The employee or member may not elect

continuation more than thirty-one days after the date of termination.

5. An employee or member electing continuation shall pay to the group policyholder or

the employer, on a monthly basis in advance, the amount of contribution required by

the policyholder or employer, but not more than the group rate for the insurance being

continued under the group policy on the due date of each payment. The employee's or

member's written election of continuation, together with the first contribution required

to establish contributions on a monthly basis in advance, must be given to the

policyholder or employer within thirty-one days of the date the employee's or member's

insurance would otherwise terminate.

6. Continuation of insurance under the group policy for any person terminates when the

person fails to satisfy subsection 2 or, if earlier, at the first to occur of the following:

a. The date thirty-nine weeks after the date the employee's or member's insurance

under the policy would otherwise have terminated because of termination of

employment or membership.

b. If the employee or member fails to make timely payment of a required

contribution, the end of the period for which contributions were made.

c. The date on which the group policy is terminated or, in the case of an employee,

the date the employer terminates participation under the group policy. However, if

this subdivision applies and the coverage ceasing by reason of such termination

is replaced by similar coverage under another group policy, the following apply:

(1) The employee or member may become covered under that other group

policy for the balance of the period that the employee or member would

have remained covered under the prior group policy in accordance with this

subsection had a termination described in this subdivision not occurred.

(2) The minimum level of benefits to be provided by the other group policy is the

applicable level of benefits of the prior group policy reduced by any benefits

payable under that prior group policy.

(3) The prior group policy must continue to provide benefits to the extent of its

accrued liabilities and extensions of benefits as if the replacement had not

occurred.

7. A notification of the continuation privilege must be included in each certificate of

coverage.

8. Upon termination of the continuation period, the member, surviving spouse, or

dependent is entitled to exercise any option which is provided in the group plan to

elect a conversion policy. The member electing a conversion policy shall notify the

carrier of the election and pay the required premium within thirty-one days of the

termination of the continued coverage under the group contract.

9. a. Notwithstanding any other provision of this section, an employee or member who

does not have an election of continuation coverage as described in this section in

effect on the effective date of the American Recovery and Reinvestment Act of

2009 [Pub. L. 111-5], but who would be an assistance-eligible individual under

title III of division B of the Act if the election were in effect, may elect continuation

coverage. The employer or the group policyholder shall provide employees or

members with additional written notice of the right to elect coverage under this

subsection within sixty days of the date of enactment of the American Recovery

and Reinvestment Act of 2009 or May 19, 2009, whichever is later. The employee

or member may make the election in writing no later than sixty days after the date

the employer or the group policyholder provides the notice to the employee or

member.

b. Continuation coverage elected under this subsection commences with the first

period of coverage beginning after February 16, 2009, and may not extend

beyond the period of continuation coverage that would have been required if the

coverage had instead been elected under subsection 4.

c. The period beginning on the date that the employee or member was involuntarily

terminated and ending when the continuation coverage starts must be

disregarded for the purpose of determining whether a pre-existing condition

exclusion period applies.

d. An employee or member electing continuation under this subsection shall pay to

the group policyholder or the employer, on a monthly basis in advance, the

amount of contribution required by the policyholder or employer, but not more

than the group rate for the insurance being continued under the group policy on

the due date of each payment. The employee's or member's written election of

continuation, together with the contribution required to establish contributions on

a monthly basis in advance, must be given to the policyholder or employer within

thirty-one days of the date the employee's or member's election of continuation

coverage.

e. Continuation of insurance under this subsection terminates at the earlier of the

date when the person fails to satisfy subsection 2 or when the person fails to

satisfy any requirement of subsection 6.

f. The notification described in subsection 7 is not required for continuation

coverage elected under this subsection.

g. Except as otherwise provided in this subsection, the provisions of this section

apply to an employee or member electing continuation coverage.
N.D. Cent. Code § 26.1-04-15 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-15
26.1-04-15. Judicial review by intervenor
Status: in_force

26.1-04-15. Judicial review by intervenor

If the commissioner does not charge a violation of this chapter, then any intervenor in the

proceedings may within ten days after the service of the report, cause a notice of appeal to be

filed in the district court of Burleigh County for a review of the report. The court may issue

appropriate orders and decrees in connection therewith, including, if the court finds that it is to

the interest of the public, orders enjoining and restraining the continuance of any method of

competition, act, or practice which it finds, notwithstanding the report of the commissioner,

violates this chapter.
N.D. Cent. Code § 26.1-52-04 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-04
26.1-52-04. Facility membership
Status: in_force

26.1-52-04. Facility membership

Each insurer authorized to write and who is engaged in writing within this state, on a direct

basis, basic property insurance or any component thereof in multiperil policies or homeowners

insurance shall participate in the facility as a condition of its authority to do the business of

insurance in this state. Members of the facility are responsible for the cost of funding the

operations, expenses, and losses of the facility. Each year the board shall assess the members

based upon each member's pro rata share of the aggregate property insurance premium written

in the second preceding calendar year as disclosed in the annual statement and other reports

filed by members with the commissioner. The assessment must be based on the premiums

reported from income from this state in the following lines of the annual statement: fire, allied

lines, and homeowners multiple peril.
N.D. Cent. Code § 26.1-38.1-16 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-16
26.1-38.1-16. Prohibited advertisement of Insurance Guaranty Association Act in insurance sales - Notice to policy owners
Status: in_force

26.1-38.1-16. Prohibited advertisement of Insurance Guaranty Association Act in

insurance sales - Notice to policy owners.

1. No person, including a member insurer, insurance producer, or affiliate of a member

insurer, may make, publish, disseminate, circulate, or place before the public, or cause

directly or indirectly, to be made, published, disseminated, circulated, or placed before

the public, in any newspaper, magazine, or other publication, or in the form of a notice,

circular, pamphlet, letter, or poster, or over any radio station or television station, or in

any other way, any advertisement, announcement or statement, written or oral, which

uses the existence of the insurance guaranty association of this state for the purpose

of sales, solicitation, or inducement to purchase any form of insurance or other

coverage covered by chapter 26.1-38.1. However, this section does not apply to the

North Dakota life and health insurance guaranty association or any other entity that

does not sell or solicit insurance or coverage by a health maintenance organization.

2. Before January 1, 1990, the association shall prepare a summary document

describing the general purposes and current limitations of the chapter and complying

with subsection 3. This document should be submitted to the commissioner for

approval. Sixty days after receiving approval, no member insurer may deliver a policy

or contract to a policy owner, contract owner, certificate holder, or enrollee unless the

summary document is delivered to the policy owner, contract owner, certificate holder,

or enrollee at the time of delivery of the policy or contract. The document should also

be available upon request by a policy owner, contract owner, certificate holder, or

enrollee. The distribution, delivery, or contents or interpretation of this document does

not mean that either the policy or contract or the policy owner, contract owner,

certificate holder, or enrollee is covered in the event of the impairment or insolvency of

a member insurer. The description document must be revised by the association as

amendments to the chapter may require. Failure to receive this document does not

give the policy owner, contract owner, certificate holder, enrollee, or insured any

greater rights than those stated in this chapter.

3. The document prepared under subsection 2 must contain a clear and conspicuous

disclaimer on its face. The commissioner shall establish the form and content of the

disclaimer. The disclaimer must:

a. State the name and address of the life and health insurance guaranty association

and insurance department;

b. Prominently warn the policy owner, contract owner, certificate holder, or enrollee

that the North Dakota life and health insurance guaranty association may not

cover the policy or contract, or, if coverage is available, it will be subject to

substantial limitations and exclusions and be conditioned on continued residence

in this state;

c. State the types of policies or contracts for which guaranty funds will provide

coverage;

d. State that the member insurer and its insurance producers are prohibited by law

from using the existence of the North Dakota life and health insurance guaranty

association for the purpose of sales, solicitation, or inducement to purchase any

form of insurance or health maintenance organization coverage;

e. Emphasize that the policy owner, contract owner, certificate holder, or enrollee

should not rely on coverage under the North Dakota life and health insurance

guaranty association when selecting an insurer or health maintenance

organization coverage;

f. Explain rights available and procedures for filing a complaint to allege a violation

of any provisions of this chapter; and

g. Provide other information as directed by the commissioner, including sources for

information about the financial condition of insurers provided the information is

not proprietary and is subject to disclosure under the state's public records law.

4. A member insurer shall retain evidence of compliance with subsection 2 for so long as

the policy or contract for which the notice is given remains in effect.
N.D. Cent. Code § 26.1-03-19.4 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.4
26.1-03-19.4. Examination reports
Status: in_force

26.1-03-19.4. Examination reports

1. All examination reports must be comprised of only facts appearing upon the books,

records, or other documents of the company, its agents, or other persons examined, or

as ascertained from the testimony of its officers or agents or other persons examined

concerning its affairs, and the conclusions and recommendations as the examiners

find reasonably warranted from the facts.

2. No later than sixty days following completion of the examination, the examiner in

charge shall file with the department a verified written report of examination under

oath. Upon receipt of the verified report, the department shall transmit the report to the

company examined, together with a notice which must afford the company examined a

reasonable opportunity of not more than thirty days to make a written submission or

rebuttal with respect to any matters contained in the examination report.

3. Within thirty days of the end of the period allowed for the receipt of written submissions

or rebuttals, the commissioner shall fully consider and review the report, together with

any written submissions or rebuttals and any relevant portions of the examiner's

workpapers, and enter an order:

a. Adopting the examination report as filed or with modification or corrections. If the

examination report reveals that the company is operating in violation of any law,

regulation, or prior order of the commissioner, the commissioner may order the

company to take any action the commissioner considers necessary and

appropriate to cure the violation;

b. Rejecting the examination report with directions to the examiners to reopen the

examination for purposes of obtaining additional data, documentation, or

information and refiling pursuant to subsection 1; or

c. Calling for an investigatory hearing with no less than twenty days' notice to the

company for purposes of obtaining additional documentation, data, information,

and testimony.

4. a. All orders entered pursuant to subdivision a of subsection 3, except those entered

pursuant to section 26.1-01-03.1 or 26.1-11-09, must be accompanied by findings

and conclusions resulting from the commissioner's consideration and review of

the examination report, relevant examiner workpapers, and any written

submissions or rebuttals. The company may, within thirty days of the entry of any

such order, request a hearing to vacate or amend the order. This hearing must be

conducted in compliance with chapter 28-32. The order must be served upon the

company, together with a copy of the adopted examination report. Within thirty

days of the issuance of the adopted report, the company shall acknowledge

receipt of the adopted report and related orders.

b. Any hearing conducted under subdivision c of subsection 3 by the commissioner

or authorized representative must be conducted as a nonadversarial confidential

investigatory proceeding as necessary for the resolution of any inconsistencies,

discrepancies, or disputed issues apparent upon the face of the filed examination

report or raised by or as a result of the commissioner's review of relevant

workpapers or by the written submission or rebuttal of the company. Within

twenty days of the conclusion of any hearing, the commissioner shall enter an

order pursuant to subdivision a of subsection 3.

5. a. Upon the adoption of an examination report under subdivision a of subsection 3,

the commissioner shall continue to hold the content of the examination report as

private and confidential information for a period of fifteen days except to the

extent provided in subsection 2. Thereafter, the commissioner may open the

report for public inspection so long as no court of competent jurisdiction has

stayed its publication.

b. Nothing contained in this code prevents or may be construed as prohibiting the

commissioner from disclosing the content of an examination report, preliminary

examination report, or results, or any matter relating thereto, to the insurance

department of this or any other state or country, or to law enforcement officials of

this or any other state or agency of the federal government at any time, so long

as the agency or office receiving the report or matters relating thereto agrees in

writing to hold it confidential and in a manner consistent with this chapter.

c. In the event the commissioner determines that regulatory action is appropriate as

a result of any examination, the commissioner may initiate any proceedings or

actions as provided by law.

6. All working papers, recorded information, documents, and copies thereof produced by,

obtained by, or disclosed to the commissioner or any other person in the course of an

examination made under this chapter, or in the course of analysis by the commissioner

of the financial condition or market conduct of the company, must be given confidential

treatment and are not subject to subpoena and may not be made public by the

commissioner or any other person, except as provided in this subsection and to the

extent provided in subsection 5. Access also may be granted to the national

association of insurance commissioners. The parties must agree in writing prior to

receiving the information to provide to it the same confidential treatment as required by

this section, unless the prior written consent of the company to which it pertains has

been obtained. This subsection may not be construed as prohibiting the commissioner

from making public aggregate or anonymized information from the materials

contemplated in this subsection.
N.D. Cent. Code § 26.1-42.1-02 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-02
26.1-42.1-02. Definitions
Status: in_force

26.1-42.1-02. Definitions

As used in this chapter:

1. "Affiliate" means a person who directly, or indirectly, through one or more

intermediaries, controls, is controlled by, or is under common control with an insolvent

insurer on December thirty-first of the year immediately following the date the insurer

becomes an insolvent insurer.

2. "Association" means the North Dakota insurance guaranty association created under

section 26.1-42.1-03.

3. "Claimant" means any insured making a first-party claim or any person instituting a

liability claim, provided that no person who is an affiliate of the insolvent insurer may

be a claimant.

4. "Control" means the direct or indirect possession of the power to direct or cause the

direction of the management and policies of a person, whether through the ownership

of voting securities, by contract other than a commercial contract for goods or

nonmanagement services, or otherwise, unless the power is the result of an official

position with or corporate office held by the person. Control is presumed to exist if any

person directly or indirectly owns, controls, holds with the power to vote, or holds

proxies representing at least ten percent of the voting securities of any other person.

This presumption may be rebutted by a showing that control does not exist in fact.

5. "Covered claim" means an unpaid claim, including an unpaid claim for unearned

premiums, submitted by a claimant, that arises out of and is within the coverage and is

subject to the applicable limits of an insurance policy to which this chapter applies,

issued by an insurer, if this insurer becomes an insolvent insurer after August 1, 1999,

and the claimant or insured is a resident of this state at the time of the insured event;

provided that for entities other than an individual, the residence of a claimant, insured,

or policyholder is the state in which the entity's principal place of business is located at

the time of the insured event; or the claim is a first-party claim for damage to property

with a permanent location in this state. The term does not include:

a. Any amount awarded as punitive or exemplary damages;

b. Any amount sought as a return of premium under any retrospective rating plan;

c. Any amount due any reinsurer, insurer, insurance pool, or underwriting

association as subrogation recoveries, as reinsurance recoveries, as contribution,

as indemnification, or otherwise. A claim under this subdivision for any amount

due any reinsurer, insurer, insurance pool, or underwriting association may not be

asserted against a person insured under a policy issued by an insolvent insurer

other than to the extent the claim exceeds the association obligation limitations

set forth in section 26.1-42.1-05;

d. Workforce safety and insurance, including any contract indemnifying an employer

who pays compensation directly to employees;

e. Any first-party claim by an insured whose net worth exceeds ten million dollars on

December thirty-first of the year immediately following the date the insurer

becomes an insolvent insurer; provided that an insured's net worth on that date is

deemed to include the aggregate net worth of the insured and all of the insured's

subsidiaries as calculated on a consolidated basis; and

f. Any first-party claim by an insured that is an affiliate of the insolvent insurer.

6. "Insolvent insurer" means an insurer licensed to transact insurance in this state at the

time the policy was issued or when the insured event occurred, and against whom a

final order of liquidation was entered after August 1, 1999, with a finding of insolvency

by a court of competent jurisdiction in the insurer's state of domicile.

7. "Member insurer" means any person that writes any kind of insurance to which this

chapter applies under section 26.1-42.1-01, including the exchange of reciprocal or

interinsurance contracts and that is licensed to transact insurance in this state. An

insurer shall cease to be a member insurer on the day following the termination or

expiration of the insurer's license to transact the kinds of insurance to which this

chapter applies, however the insurer remains liable as a member insurer for every

obligation, including an obligation for assessments levied before the termination or

expiration of the insurer's license and assessments levied after the termination or

expiration, which relate to any insurer that became an insolvent insurer before the

termination or expiration of that insurer's license.

8. "Net direct written premiums" means direct gross premiums written in this state on

insurance policies to which this chapter applies, less return premiums on these

policies and dividends paid or credited to policyholders on this direct business. The

term does not include premiums on contracts between insurers or reinsurers.
N.D. Cent. Code § 26.1-38.1-12 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-12
26.1-38.1-12. Examination of the association - Annual report
Status: in_force

26.1-38.1-12. Examination of the association - Annual report

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

directors shall submit to the commissioner each year, not later than one hundred twenty days

after the association's fiscal year, a financial report in a form approved by the commissioner and

a report of its activities during the preceding fiscal year. Upon the request of a member insurer,

the association shall provide the member insurer with a copy of the report.
N.D. Cent. Code § 26.1-03.1-02 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-02
26.1-03.1-02. Risk-based capital reports
Status: in_force

26.1-03.1-02. Risk-based capital reports

1. On or prior to each March first, every domestic insurer shall prepare and submit to the

commissioner a report of its risk-based capital levels as of the end of the calendar year

just ended, in a form and containing any information required by the risk-based capital

instructions. In addition, every domestic insurer shall file its risk-based capital report:

a. With the national association of insurance commissioners in accordance with the

risk-based capital instructions; and

b. With the insurance commissioner in any state in which the insurer is authorized to

do business, if the insurance commissioner has notified the insurer of its request

in writing, in which case the insurer shall file its risk-based capital report not later

than the later of:

(1) Fifteen days from the receipt of notice to file its risk-based capital report with

that state; or

(2) The filing date.

2. A life and health insurer's or fraternal benefit society's risk-based capital must be

determined in accordance with the formula set forth in the risk-based capital

instructions. The formula must take into account, and may adjust for the covariance

between, the following factors determined in each case by applying the factors in the

manner set forth in the risk-based capital instructions:

a. The risk with respect to the insurer's assets;

b. The risk of adverse insurance experience with respect to the insurer's liabilities

and obligations;

c. The interest rate risk with respect to the insurer's business; and

d. All other business risks and any other relevant risks as are set forth in the

risk-based capital instructions.

3. A property and casualty insurer's risk-based capital must be determined in accordance

with the formula set forth in the risk-based capital instructions. The formula must take

into account, and may adjust for the covariance between, the following factors

determined in each case by applying the factors in the manner set forth in the risk-

based capital instructions:

a. Asset risk;

b. Credit risk;

c. Underwriting risk; and

d. All other business risks and any other relevant risks as are set forth in the

risk-based instructions.

4. An excess of capital over the amount produced by the risk-based capital requirements

contained in this chapter and the formulas, schedules, and instructions referenced in

this chapter is desirable in the business of insurance. Accordingly, insurers should

seek to maintain capital above the risk-based capital levels required by this chapter.

Additional capital is used and is useful in the insurance business and helps to secure

an insurer against various risks inherent in, or affecting, the business of insurance and

not accounted for or only partially measured by the risk-based capital requirements

contained in this chapter.

5. If a domestic insurer files a risk-based capital report that in the judgment of the

commissioner is inaccurate, then the commissioner shall adjust the risk-based capital

report to correct the inaccuracy and notify the insurer of the adjustment. The notice

must contain a statement of the reason for the adjustment. A risk-based capital report

so adjusted is referred to as an adjusted risk-based capital report.
N.D. Cent. Code § 26.1-26.3-05 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-05
26.1-26.3-05. Examination authority
Status: in_force

26.1-26.3-05. Examination authority

The acts of the managing general agent are considered to be the acts of the insurer on

whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
N.D. Cent. Code § 26.1-26-24 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-24
26.1-26-24. Examination when partnership, limited liability partnership, corporation, or limited liability company is applicant
Status: repealed

26.1-26-24. Examination when partnership, limited liability partnership, corporation,

or limited liability company is applicant.

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-24-05 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-05
26.1-24-05. Surrender of fire policy for cancellation - Return of premium - Short-term rates
Status: in_force

26.1-24-05. Surrender of fire policy for cancellation - Return of premium - Short-term

rates.

The holder of any insurance policy against loss or damage to property by fire or other

casualty, notwithstanding any provision of the policy or contract to the contrary, may surrender

the policy for cancellation at any time. Upon surrender, the company issuing the policy shall

retain or receive such proportion, and not more, of the premium paid or agreed to be paid,

including policy fees in excess of two dollars on any one policy and other sums of money paid or

agreed to be paid in consideration of the insurance policy, as corresponds with the usual short

rates upon term policies as adopted and maintained by the organization which promulgates

rates for fire insurance on property situated in this state for the time the policy remained in force.
N.D. Cent. Code § 26.1-27-11 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-11
26.1-27-11. Claim adjustment or settlement
Status: in_force

26.1-27-11. Claim adjustment or settlement

With respect to any policies when an administrator adjusts or settles claims, the

compensation to the administrator with regard to the policies may not be contingent on claim

experience. This section does not prevent the compensation of an administrator from being

based on premiums or charges collected or number of claims paid or processed.
N.D. Cent. Code § 26.1-06.1-06 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-06
26.1-06.1-06. Cooperation of officers, owners, and employees - Penalty
Status: in_force

26.1-06.1-06. Cooperation of officers, owners, and employees - Penalty

1. Any officer, manager, director, trustee, owner, employee, or agent of any insurer, or

any other persons with authority over or in charge of any segment of the insurer's

affairs, shall cooperate with the commissioner in any proceeding under this chapter, or

any investigation preliminary to the proceeding. The term "person" as used in this

section includes any person who exercises control directly or indirectly over activities

of the insurer through any holding company or other affiliate of the insurer. "To

cooperate" includes the following:

a. To reply promptly in writing to any inquiry from the commissioner requesting a

reply;

b. To make available to the commissioner any books, accounts, documents, or other

records or information or property of or pertaining to the insurer and in

possession, custody, or control of that person; and

c. To be available for oral statements and interviews by the commissioner if so

requested.

2. No person may obstruct or interfere with the commissioner in the conduct of any

delinquency proceeding or any investigation preliminary or incidental thereto.

3. Any person included within subsection 1 who fails to cooperate with the commissioner,

or any person who obstructs or interferes with the commissioner in the conduct of any

delinquency proceeding or any investigation preliminary or incidental thereto, or who

violates any valid order issued by the commissioner under this chapter is guilty of a

class A misdemeanor and, after a hearing, may be subject to the imposition by the

commissioner of a civil penalty not to exceed ten thousand dollars and may be subject

further to the revocation or suspension of any insurance licenses issued by the

commissioner.
N.D. Cent. Code § 26.1-26.8-22 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-22
26.1-26.8-22. Statute of limitations
Status: in_force

26.1-26.8-22. Statute of limitations

After the effective date of this Act, a civil action for the recovery of damages resulting from

negligence or breach of contract brought against any person licensed under this chapter by any

person claiming to have been injured as a result of the providing of public adjusting services or

the failure to provide public adjusting services of a licensee may not be commenced in this state

unless the action is commenced on or before the earlier of:

1. Two years from the date the alleged act, omission, or neglect is discovered or should

have been discovered by exercise of reasonable diligence; or

2. Six years after performance of the service for which the claim for relief arises, unless

discovery was prevented by the fraudulent conduct of the licensee.
N.D. Cent. Code § 26.1-06.2-04 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-04
26.1-06.2-04. Confidentiality of certain proceedings and records
Status: in_force

26.1-06.2-04. Confidentiality of certain proceedings and records

1. Notwithstanding any other provision of law and except as set forth in this section,

proceedings, hearings, notices, correspondence, reports, records, and other

information in the possession of the commissioner or the department relating to the

supervision of any insurer are confidential.

2. The personnel of the department shall have access to these proceedings, hearings,

notices, correspondence, reports, records, or information as permitted by the

commissioner.

3. The commissioner may open the proceedings or hearings or disclose the notices,

correspondence, reports, records, or information to a department, agency, or

instrumentality of this or another state or the United States if the commissioner

determines that the disclosure is necessary or proper for the enforcement of the laws

of this or another state or the United States.

4. The commissioner may open the proceedings or hearings or make public the notices,

correspondence, reports, records, or other information if the commissioner deems that

it is in the best interest of the public or in the best interest of the insurer, its insureds,

creditors, or the general public.

5. This section does not apply to hearings, notices, correspondence, reports, records, or

other information obtained upon the appointment of a receiver for the insurer by a

court of competent jurisdiction.
N.D. Cent. Code § 26.1-40-08 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-08
26.1-40-08. Reason for cancellation or nonrenewal - Nonliability of parties
Status: in_force

26.1-40-08. Reason for cancellation or nonrenewal - Nonliability of parties

The specific reason for cancellation or nonrenewal which is furnished to the insured does

not constitute grounds for any claim for relief against the insurer or the insured's authorized

representative, or its agents or employees, or any person who in good faith furnishes to the

insurer the information upon which the reasons for cancellation or nonrenewal are based.
N.D. Cent. Code § 26.1-33.4-11 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-11
26.1-33.4-11. Authority to adopt regulations - Conflict of laws
Status: in_force

26.1-33.4-11. Authority to adopt regulations - Conflict of laws

1. The commissioner may adopt rules implementing this chapter and regulating the

activities and relationships of providers, brokers, and insurers and their agents.

2. The commissioner may establish standards for evaluating reasonableness of a

payment under a life settlement contract for an individual who is terminally or

chronically ill. This authority includes regulation of discount rates used to determine the

amount paid in exchange for assignment, transfer, sale, devise, or bequest of a benefit

under a life insurance policy insuring the life of an individual who is chronically or

terminally ill.

3. The commissioner may establish appropriate licensing requirements, fees, and

standards for continued licensure for providers and brokers.

4. a. If there is more than one owner on a single policy and the owners are residents of

different states, the life settlement contract must be governed by the law of the

state in which the owner having the largest percentage ownership resides, or if

the owners hold equal ownership, the state of residence of one owner agreed

upon in writing by all of the owners. The law of the state of the insured governs if

equal owners fail to agree in writing upon a state of residence for jurisdictional

purposes.

b. A provider from this state who enters a life settlement contract with an owner who

is a resident of another state that has enacted statutes or adopted regulations

governing life settlement contracts is governed in the effectuation of that life

settlement contract by the statutes and regulations of the owner's state of

residence. If the state in which the owner is a resident has not enacted statutes or

regulations governing life settlement contracts, the provider shall give the owner

notice that neither state regulates the transaction upon which the owner is

entering. For transactions in those states, however, the provider is to maintain all

records required if the transactions were executed in the state of residence. The

forms used in those states need not be approved by the commissioner.

c. If there is a conflict in the laws that apply to an owner and a purchaser in any

individual transaction, the laws of the state that apply to the owner shall take

precedence and the provider shall comply with those laws.