N.D. Cent. Code § 26.1-05-19.1 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-19.1
26.1-05-19.1. Call options - Financial futures contracts
Status: in_force

26.1-05-19.1. Call options - Financial futures contracts

The purchase and sale of put options or call options or financial futures contracts are

subject to this section.

1. As used in this section:

a. "Call option" means an exchange-traded option contract under which the holder

has the right to buy, or to make a cash settlement in lieu of buying, a fixed

number of shares of stock, a fixed amount of an underlying security, or an index

of underlying securities at a stated price on or before a fixed expiration date.

b. "Commodity futures trading commission" means the trading regulatory agency

charged and empowered under the Commodity Futures Trading Commission Act

of 1974, as amended, with the regulation of futures trading in commodities.

c. "Financial futures contract" means an exchange-traded agreement to make or

take delivery of, or to make cash settlement in lieu of delivery of, a fixed amount

of an underlying security, or an index of underlying securities, on a specified date

or during a specified period of time, or a call or put option on such an agreement,

made through a registered futures commission merchant on a board of trade that

has been designated by the commodity futures trading commission as a contract

market. "Financial futures contract" includes a contract involving United States

treasury bills, bonds, or notes; securities or pools of securities issued by the

government national mortgage association; bank certificates of deposit; Standard

and Poor's 500 stock price index; New York stock exchange composite index; or

any other agreement that has been approved by and which is governed by the

rules and regulations of the commodity futures trading commission and the

respective contract markets on which such financial futures contracts are traded.

d. "Margin" means any type of deposit or settlement made or required to be made

with a futures commission merchant, clearinghouse, or safekeeping agent to

ensure performance of the terms of the financial futures contract. For the

purposes of this section, "margin" includes initial, maintenance, and variation

margins as those terms are commonly and customarily employed in the futures

industry.

e. "Put option" means an exchange-traded option contract under which the holder

has the right to sell, or to make a cash settlement in lieu of sale of, a fixed

number of shares of stock, fixed amount of an underlying security, or an index of

underlying securities at a stated price on or before a fixed expiration date.

f. "Securities and exchange commission" means the federal regulatory agency

charged and empowered under the Securities Exchange Act of 1934, as

amended, with the regulation of trading in securities.

g. "Underlying security" means the security subject to being purchased or sold upon

exercise of a call option or put option, or the security subject to delivery under a

financial futures contract.

2. The purchase and sale of put options or call options may take place under the

following conditions:

a. An insurance company may purchase put options or sell call options with regard

to underlying securities owned by the insurance company, underlying securities

that the insurance company may reasonably expect to obtain through exercise of

warrants or conversion rights owned by the insurance company at the time the

put option is purchased or the call option is sold, or to reduce the economic risk

associated with an insurance company asset or liability, group of such assets or

liabilities, or assets, liabilities or groups of assets or liabilities reasonably

expected to be acquired or incurred by the insurance company in the normal

course of business. Such assets or liabilities must be subject to an economic risk,

such as changing interest rates or prices.

b. An insurance company may sell put options or purchase call options to reduce

the economic risk associated with an insurance company asset or liability group

of such assets or liabilities, or assets, liabilities or groups of assets or liabilities

reasonably expected to be acquired or incurred by the insurance company in the

normal course of business, or to offset obligations and rights of the insurance

company under other options held by the insurance company pertaining to the

same underlying securities or index of underlying securities.

c. An insurance company may purchase or sell put options or call options only on

underlying securities, or an index of underlying securities, which are eligible for

investment by a life insurance company under the laws of this state.

d. An insurance company may purchase or sell put or call options only through an

exchange that is registered with the securities and exchange commission as a

national securities exchange pursuant to the provisions of the Securities

Exchange Act of 1934, as amended.

e. An insurance company may not purchase call options or sell put options, if the

purchase or sale could result in the acquisition of an amount of underlying

securities which, when aggregated with current holdings, exceeds applicable

limitations imposed under the laws of this state for investment in those particular

underlying securities.

f. The net amount of premiums paid for all option contracts purchased minus the

premiums received for all option contracts sold, plus the net amount of financial

futures contracts purchased minus financial futures contracts sold, may not at any

time exceed in the aggregate five percent of the insurance company's admitted

assets.

3. The purchase and sale of financial futures contracts may take place under the

following conditions:

a. An insurance company may purchase or sell financial futures contracts for the

purpose of hedging against the economic risk associated with an insurance

company asset or liability, group of such assets or liabilities, or assets, liabilities

or groups of assets or liabilities reasonably expected to be acquired or incurred

by the insurance company in its normal course of business. Such assets or

liabilities must be subject to an economic risk, such as changing interest rates or

prices.

b. An insurance company may not purchase or sell financial futures contracts or

options on such contracts, if the purchase or sale could result in the acquisition of

an amount of underlying securities which, when aggregated with current holdings,

exceeds applicable limitations imposed under laws of this state for investment in

those particular underlying securities.

c. The net amount of financial futures contracts purchased minus financial futures

contracts sold, plus the net amount of premiums paid for all option contracts

purchased minus the premiums received for all option contracts sold, may not at

any time exceed in the aggregate five percent of the insurance company's

admitted assets. For the purposes of transactions in financial futures contracts,

the admitted assets limitation is calculated by taking the net asset value of the

property used to margin the financial futures contract positions, plus option

premiums paid on financial futures contracts, less option premiums received on

financial futures contracts.

4. This section may not be utilized by a domestic insurance company without the prior

approval of the commissioner.
N.D. Cent. Code § 26.1-39-03 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-03
26.1-39-03. When fire contract unaffected though risk increased
Status: in_force

26.1-39-03. When fire contract unaffected though risk increased

A fire insurance contract is not affected by any act of the insured subsequent to the

execution of the policy, if the act does not violate its provisions, even though it increases the risk

and is the cause of a loss.
N.D. Cent. Code § 26.1-06.1-16 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-16
26.1-06.1-16. Grounds for liquidation
Status: in_force

26.1-06.1-16. Grounds for liquidation

The commissioner may petition the district court for an order directing the liquidation of a

domestic insurer or an alien insurer domiciled in this state on the basis:

1. Of any ground for an order of rehabilitation as specified in section 26.1-06.1-11,

whether or not there has been a prior order directing the rehabilitation of the insurer;

2. That the insurer is insolvent; or

3. That the insurer is in such condition that the further transaction of business would be

hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
N.D. Cent. Code § 26.1-39-28 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-28
26.1-39-28. Rulemaking
Status: in_force

26.1-39-28. Rulemaking

The commissioner may adopt rules for the implementation and administration of this

chapter.
N.D. Cent. Code § 26.1-17.1-07 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-07
26.1-17.1-07. Changes in rates and benefits and material modifications - Addition of limited health services
Status: in_force

26.1-17.1-07. Changes in rates and benefits and material modifications - Addition of

limited health services.

1. A prepaid limited health service organization shall file with the commissioner, prior to

use, a notice of any change in rates, charges, or benefits and of any material

modification of any matter or document furnished pursuant to section 26.1-17.1-03,

together with such supporting documents as are necessary to fully explain the change

or modification.

2. If a prepaid limited health service organization desires to add one or more limited

health services, it shall file a notice with the commissioner and, at the same time, shall

submit the information required by section 26.1-17.1-03 and shall demonstrate

compliance with sections 26.1-17.1-16, 26.1-17.1-17, and 26.1-17.1-23.

3. A change or modification filed with the commissioner pursuant to subsections 1 and 2

may be used by the prepaid limited health service organization only after approval by

the commissioner or upon the expiration of sixty days from the date of filing.

4. If such filings are disapproved, the commissioner shall notify the prepaid limited health

service organization and shall specify the reasons for disapproval in the notice. The

prepaid limited health service organization has thirty days from the date of receipt of

notice to request a hearing before the commissioner pursuant to chapter 28-32.
N.D. Cent. Code § 26.1-33-19 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-19
26.1-33-19. Computation of cash surrender value
Status: in_force

26.1-33-19. Computation of cash surrender value

1. Any cash surrender value available under a life insurance policy in the event of default

in a premium payment due on any policy anniversary, whether or not required by

section 26.1-33-18, must be an amount not less than the excess, if any, of the present

value, on the anniversary, of the future guaranteed benefits which would have been

provided for by the policy, including any existing paid-up additions, if there had been

no default, over the sum of:

a. The then present value of the adjusted premiums as defined in sections

26.1-33-21 through 26.1-33-24 corresponding to premiums which would have

fallen due on and after the anniversary; and

b. The amount of any indebtedness to the insurer on the policy.

2. Any life insurance policy issued on or after the operative date of section 26.1-33-24,

which provides supplemental life insurance or annuity benefits at the option of the

insured and for an identifiable additional premium by rider or supplemental policy

provision, the cash surrender value referred to in subsection 1 must be an amount not

less than the sum of the cash surrender value for an otherwise similar policy issued at

the same age without the rider or supplemental policy provision and the cash

surrender value as defined in subsection 1 for a policy which provides only the benefits

otherwise provided by the rider or supplemental policy provision.

3. For any family policy issued on or after the operative date of section 26.1-33-24, which

defines a primary insured and provides term insurance on the life of the spouse of the

primary insured expiring before the spouse's age seventy-one, the cash surrender

value referred to in subsection 1 must be an amount not less than the sum of the cash

surrender value for an otherwise similar policy issued at the same age without such

term insurance on the life of the spouse and the cash surrender value as defined in

subsection 1 for a policy which provides only the benefits otherwise provided by term

insurance on the life of the spouse.

4. Any cash surrender value available within thirty days after any policy anniversary

under any policy paid up by completion of all premium payments or any policy

continued under any paid-up nonforfeiture benefit, whether or not required by section

26.1-33-18, must be an amount not less than the present value, on such anniversary,

of the future guaranteed benefits provided for by the policy, including any existing

paid-up additions, decreased by any indebtedness to the insurer on the policy.
N.D. Cent. Code § 26.1-07.1-05 — ND Code / Title 26.1 / Chapter 26.1-07.1 / Section 26.1-07.1-05
26.1-07.1-05. Disclosure
Status: in_force

26.1-07.1-05. Disclosure

Any production agency or administrator which advertises, sells, transacts, or administers

coverage in this state described in section 26.1-07.1-01 which is provided by any person or

entity described in section 26.1-07.1-03 shall, if that coverage is not fully insured or otherwise

fully covered by an admitted life or disability insurer, nonprofit hospital service plan, or nonprofit

health care plan, advise any purchaser, prospective purchaser, and covered person of such lack

of insurance or other coverage.

Any administrator which advertises or administers coverage in this state, described in

section 26.1-07.1-01, which is provided by any person or entity described in section

26.1-07.1-03, shall advise any production agency of the elements of the coverage, including the

amount of "stop-loss" insurance in effect.
N.D. Cent. Code § 26.1-36-09.11 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.11
26.1-36-09.11. Breast reconstruction surgery
Status: in_force

26.1-36-09.11. Breast reconstruction surgery

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

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

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

unless the policy, contract, or evidence of insurance provides the benefit provisions of the

federal Women's Health and Cancer Rights Act of 1998 [Pub. L. 105-277; 112 Stat. 2681-337;

42 U.S.C. 300gg-6]. This section does not apply to individual or group supplemental, specified

disease, long-term care, or other limited benefit policies.
N.D. Cent. Code § 26.1-45-04 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-04
26.1-45-04. Disclosure and standards for long-term care insurance
Status: in_force

26.1-45-04. Disclosure and standards for long-term care insurance

The insurance commissioner may adopt rules that include standards for full and fair

disclosure setting forth the manner, content, and required disclosures for the sale of long-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,

and definitions of terms.
N.D. Cent. Code § 26.1-10.3-03 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-03
26.1-10.3-03. Rules and regulations
Status: in_force

26.1-10.3-03. Rules and regulations

The commissioner may adopt reasonable rules necessary for the implementation of this

chapter.
N.D. Cent. Code § 26.1-57-06 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-06
26.1-57-06. Cancellation
Status: in_force

26.1-57-06. Cancellation

1. A guaranteed asset protection waiver agreement is cancellable. A guaranteed asset

protection waiver must provide if a borrower cancels a waiver within the free-look

period, the borrower is entitled to a full refund of the purchase price, if benefits have

not been provided. If a borrower cancels the waiver after the free-look period and no

benefits have been provided, the creditor, administrator, or other authorized party shall

provide the borrower a refund of the purchase price, calculated in a manner at least as

favorable as using the sum-of-the-digits method, less any cancellation fee no greater

than fifty dollars.

2. To receive a refund, the borrower, in accordance with any applicable terms of the

waiver, shall provide a written request to cancel to the creditor, administrator, or other

party. If the request to cancel is a result of the early termination of the finance

agreement the borrower shall provide the written request to cancel within ninety days

of the occurrence of the event terminating the finance agreement.

3. If the cancellation of a guaranteed asset protection waiver occurs as a result of a

default under the finance agreement or the repossession of the motor vehicle

associated with the finance agreement, or any other termination of the finance

agreement, any refund due may be paid directly to the creditor or administrator and

applied as set forth in subsection 4.

4. Any cancellation refund under subsection 1, 2, or 3 may be applied by the creditor as a

reduction of the amount owed under the finance agreement, unless the borrower can

show that the finance agreement has been paid in full.
N.D. Cent. Code § 26.1-44-05 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-05
26.1-44-05. Consumer notice
Status: in_force

26.1-44-05. Consumer notice

If the insured's home state is this state, the surplus lines producer shall give the following

consumer notice to every person applying for insurance with a nonadmitted insurer. The notice

must be printed in sixteen-point type on a separate document affixed to the application. The

applicant shall sign and date a copy of the notice to acknowledge receiving it. The surplus lines

producer shall maintain the signed notice in its file for a period of five years from expiration of

the policy. The surplus lines producer shall tender a copy of the signed notice to the insured at

the time of delivery of each policy the producer transacts with a nonadmitted insurer. The copy

must be a separate document affixed to the policy.

"Notice: 1. An insurer that is not licensed in this state is issuing the insurance policy that you

have applied to purchase. These companies are called "nonadmitted" or "surplus lines" insurers.

2. The insurer is not subject to the financial solvency regulation and enforcement that applies to

licensed insurers in this state. 3. These insurers generally do not participate in insurance

guaranty funds created by state law. These guaranty funds will not pay your claims or protect

your assets if the insurer becomes insolvent and is unable to make payments as promised. 4.

Some states maintain lists of approved or eligible surplus lines insurers and surplus lines

producers may use only insurers on the lists. Some states issue orders that particular surplus

lines insurers cannot be used. 5. For additional information about the above matters and about

the insurer, you should ask questions of your insurance producer or surplus lines producer. You

may also contact your insurance department consumer help line."
N.D. Cent. Code § 26.1-11-14 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-14
26.1-11-14. Judgment by default - Time of entry
Status: in_force

26.1-11-14. Judgment by default - Time of entry

A judgment by default under this chapter may not be entered until the expiration of thirty

days from the date of the filing of the affidavit of compliance.
N.D. Cent. Code § 26.1-40-15.5 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.5
26.1-40-15.5. Reimbursement and subrogation
Status: in_force

26.1-40-15.5. Reimbursement and subrogation

1. In the event of payment under uninsured or underinsured motorist coverage, the

insurer making payment to the extent of the payment is entitled to the proceeds of any

agreement, settlement, or judgment resulting from the exercise of any rights of

recovery of such insured for compensatory damages or be entitled to exercise a right

of subrogation against any person or organization legally responsible for the bodily

injury, sickness, disease, or death for which such payment is made.

2. No insurer providing underinsured motorist coverage has a right of subrogation against

an underinsured motorist if the insurer has been provided with a written notice in

advance of an agreement, settlement, or judgment between its insured and the

underinsured motorist, and the insurer fails to advance a payment to the insured in an

amount equal to the tentative agreement or settlement within thirty days following

receipt of such notice. An insurer advancing such payment has full rights of

subrogation.

3. If an insurer makes payment under uninsured or underinsured motorist coverages

because of an insurer insolvency, as defined in section 26.1-42.1-02, the paying

insurer's rights of reimbursement and subrogation do not include any rights of recovery

against the insured of the insolvent insurer or against the North Dakota guaranty fund,

except for the amount that is in excess of the limits of liability of the policy of the

insolvent insurer.
N.D. Cent. Code § 26.1-44-09 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-09
26.1-44-09. Rulemaking authority
Status: in_force

26.1-44-09. Rulemaking authority

The commissioner may adopt reasonable rules to implement this chapter.
N.D. Cent. Code § 26.1-26-33.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-33.1
26.1-26-33.1. Notification of electronic mailing address used by regulator
Status: in_force

26.1-26-33.1. Notification of electronic mailing address used by regulator

An insurance producer shall maintain an electronic mailing address for regulatory use. It is

an insurance producer's sole responsibility to continually monitor the electronic mailing address

for regulatory communications from the commissioner.
N.D. Cent. Code § 26.1-36-15 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-15
26.1-36-15. Approval of accident and health policy forms
Status: in_force

26.1-36-15. Approval of accident and health policy forms

A policy form meeting the requirements of subsection 1 of section 26.1-36-14 must be

approved notwithstanding any other law which specifies the contents of a policy, if the policy

form provides the policyholders and claimants protection not less favorable than they would be

entitled to under such laws.
N.D. Cent. Code § 26.1-53.1-13 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-13
26.1-53.1-13. Examination or investigation of discount plan organization - Expenses
Status: in_force

26.1-53.1-13. Examination or investigation of discount plan organization - Expenses

The commissioner may examine or investigate the business and affairs of any discount plan

organization to protect the interests of the residents of this state for any potential violations of

this chapter or as the commissioner deemed necessary. The discount plan organization shall

produce any requested information and documentation within twenty days of such request. The

discount plan organization that is the subject of the examination or investigation shall pay the

expenses incurred in conducting the examination or investigation. Failure by the discount plan

organization to pay the expenses is grounds for denial of registration or revocation of

registration to operate as a discount plan organization. The discount plan organization is subject

to the provisions of section 26.1-04-03 and nothing in this chapter may be construed to

discharge any requirements imposed by section 26.1-04-03.
N.D. Cent. Code § 26.1-06.1-42 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-42
26.1-06.1-42. Liquidator's recommendations to the court
Status: in_force

26.1-06.1-42. The ancillary receiver shall also arrange a date for hearing if necessary

under section 26.1-06.1-38 and shall give notice to the liquidator in the domiciliary

state, either by certified mail or by personal service at least forty days prior to the date

set for hearing. If the domiciliary liquidator, within thirty days after the giving of such

notice, gives notice in writing to the ancillary receiver and to the claimant, either by

certified mail or by personal service, of intention to contest the claim, the domiciliary

liquidator is entitled to appear or to be represented in any proceeding in this state

involving the adjudication of the claim.

3. The final allowance of the claim by the courts of this state must be accepted as

conclusive as to amount and as to priority against special deposits or other security

located in this state.
N.D. Cent. Code § 26.1-40-17.1 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-17.1
26.1-40-17.1. Motor vehicle liability policy - Rental vehicles covered
Status: in_force

26.1-40-17.1. Motor vehicle liability policy - Rental vehicles covered

1. Every motor vehicle liability insurance policy, as required by section 39-08-20, covering

noncommercial private passenger motor vehicles must provide that all of the obligation

for damage and loss of use to a rented private passenger vehicle will be covered by

the property damage liability portion of the policy and subject to that policy limit. The

obligation of the policy must not be contingent on fault or negligence of the insured.

For purposes of this section, private passenger motor vehicle includes station wagons,

minivans, vans, and pickups, and does not include motor homes, motorcycles, or

trucks other than pickups.

2. A vehicle is rented for purposes of this section if the vehicle is rented under an

agreement for thirty continuous days or less.

3. The policy or certificate issued by the insurer must inform the insured of the application

of the insurance policy to rental vehicles and that the insured may not need to

purchase additional coverage from the rental company.

4. If an insured has two or more vehicles covered by a plan or plans of liability insurance

containing the rented motor vehicle coverage required under subsection 1, the insured

may select the policy that the insured wishes to collect from and the insurer that issued

that plan is entitled to a pro rata contribution from any other plan or insurers based

upon the property damage limits of liability. If the person renting the motor vehicle is

also covered by that person's employer's insurance policy or the employer's

automobile self-insurance plan, the insurer or obligor under the employer's policy or

self-insurance plan has primary responsibility to pay claims arising from use of the

rented vehicle.

5. A notice advising the insured of rental vehicle coverage must be given by the insurer to

each current insured with their first renewal notice following July 6, 1989. The notice

must be approved by the insurance commissioner. The commissioner may specify the

form of the notice.

6. A rental car company may not require as a condition to its rental contract that the

renter make a deposit for a prior payment of damage to the rented vehicle or loss of

use of that vehicle.

7. For each day a damaged vehicle is out of service because of damage to the vehicle

while rented to others, the rental car company is entitled to collect sixty percent of the

daily rental fee applicable to the contract in force when the car was damaged, but not

to exceed fifteen days.
N.D. Cent. Code § 26.1-17.1-26 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-26
26.1-17.1-26. Rulemaking
Status: in_force

26.1-17.1-26. Rulemaking

The commissioner may adopt reasonable rules necessary in the implementation of this

chapter.
N.D. Cent. Code § 26.1-22-21.1 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-21.1
26.1-22-21.1. Insurance broker of record
Status: repealed

26.1-22-21.1. Insurance broker of record

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-16-26 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-26
26.1-16-26. Transfer of membership
Status: in_force

26.1-16-26. Transfer of membership

A benevolent society organized or operating under this chapter, by a two-thirds vote of its

members present or voting by proxy at any annual meeting or special meeting called for that

purpose, may transfer its membership to any other society or organization. Notice of the

contemplated action must be mailed to each member in good standing, at the member's

last-known post-office address, at least fifteen days prior to the date of the meeting, and any

transfer of membership, and the conditions thereof, must have the approval of the

commissioner.
N.D. Cent. Code § 26.1-33.4-13 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-13
26.1-33.4-13. Fraud prevention and control
Status: in_force

26.1-33.4-13. Fraud prevention and control

1. a. A person may not commit a fraudulent life settlement act.

b. A person may not knowingly and intentionally interfere with the enforcement of

the provisions of this chapter or investigations of suspected or actual violations of

this chapter.

c. A person in the business of life settlements may not knowingly or intentionally

permit any person convicted of a felony involving dishonesty or breach of trust to

participate in the business of life settlements.

2. a. Life settlement contracts and applications for life settlement contracts, regardless

of the form of transmission, must contain the following statement or a

substantially similar statement:

Any person that knowingly presents false information in an application for

insurance or life settlement contract is guilty of a crime and may be subject

to fines and confinement in prison.

b. The lack of a statement as required in subdivision a does not constitute a defense

in any prosecution for a fraudulent life settlement act.

3. a. Any person engaged in the business of life settlements having knowledge or a

reasonable belief that a fraudulent life settlement act is being, will be, or has been

committed shall provide to the commissioner the information required by and in a

manner prescribed by the commissioner.

b. Any other person having knowledge or a reasonable belief that a fraudulent life

settlement act is being, will be, or has been committed may provide to the

commissioner the information required by and in a manner prescribed by the

commissioner.

4. a. Civil liability may not be imposed on and no cause of action may arise from a

person's furnishing information concerning suspected, anticipated, or completed

fraudulent life settlement acts or suspected or completed fraudulent insurance

acts if the information is provided to or received from:

(1) The commissioner or the commissioner's employees, agents, or

representatives;

(2) Federal, state, or local law enforcement or regulatory officials or their

employees, agents, or representatives;

(3) A person involved in the prevention and detection of fraudulent life

settlement acts or that person's agents, employees, or representatives;

(4) Any regulatory body or its employees, agents, or representatives overseeing

life insurance, life settlements, securities, or investment fraud;

(5) The life insurer that issued the life insurance policy covering the life of the

insured; or

(6) The licensee and any agents, employees, or representatives.

b. Subdivision a does not apply to statements made with actual malice. In an action

brought against a person for filing a report or furnishing other information

concerning a fraudulent life settlement act or a fraudulent insurance act, the party

bringing the action shall plead specifically any allegation that subdivision a does

not apply because the person filing the report or furnishing the information did so

with actual malice.

c. A person identified in subdivision a is entitled to an award of attorney's fees and

costs if that person is the prevailing party in a civil cause of action for libel,

slander, or any other relevant tort arising out of activities in carrying out the

provisions of this chapter and the party bringing the action was not substantially

justified in doing so. For purposes of this section, a proceeding is "substantially

justified" if the proceeding had a reasonable basis in law or fact at the time the

proceeding was initiated.

d. This section does not abrogate or modify common law or statutory privileges or

immunities enjoyed by a person described in subdivision a.

5. a. The documents and evidence provided pursuant to subsection 4 or obtained by

the commissioner in an investigation of suspected or actual fraudulent life

settlement acts is privileged and confidential and may not be a public record and

may not be subject to discovery or subpoena in a civil or criminal action.

b. Subdivision a does not prohibit release by the commissioner of documents and

evidence obtained in an investigation of suspected or actual fraudulent life

settlement acts:

(1) In administrative or judicial proceedings to enforce laws administered by the

commissioner;

(2) To federal, state, or local law enforcement or regulatory agencies, to an

organization established for the purpose of detecting and preventing

fraudulent life settlement acts, or to the national association of insurance

commissioners; or

(3) At the discretion of the commissioner, to a person in the business of life

settlements that is aggrieved by a fraudulent life settlement act.

c. Release of documents and evidence under subdivision b does not abrogate or

modify the privilege granted in subdivision a.

6. This chapter does not:

a. Preempt the authority or relieve the duty of other law enforcement or regulatory

agencies to investigate, examine, and prosecute suspected violations of law;

b. Preempt, supersede, or limit any provision of any state securities law or any rule,

order, or notice issued thereunder;

c. Prevent or prohibit a person from disclosing voluntarily information concerning life

settlement fraud to a law enforcement or regulatory agency other than the

insurance department; or

d. Limit the powers granted elsewhere by the laws of this state to the commissioner

or an insurance fraud unit to investigate and examine possible violations of law

and to take appropriate action against wrongdoers.

7. a. Providers and brokers shall have in place antifraud initiatives reasonably

calculated to detect, prosecute, and prevent fraudulent life settlement acts. The

commissioner may order, or a licensee may request and the commissioner may

grant, such modifications of the following required initiatives as necessary to

ensure an effective antifraud program. The modifications may be more or less

restrictive than the required initiatives so long as the modifications may

reasonably be expected to accomplish the purpose of this section. Antifraud

initiatives include:

(1) Fraud investigators, who may be provider or broker employees or

independent contractors; and

(2) An antifraud plan, which must be submitted to the commissioner. The

antifraud plan must include:

(a) A description of the procedures for detecting and investigating

possible fraudulent life settlement acts and procedures for resolving

material inconsistencies between medical records and insurance

applications;

(b) A description of the procedures for reporting possible fraudulent life

settlement acts to the commissioner;

(c) A description of the plan for antifraud education and training of

underwriters and other personnel; and

(d) A description or chart outlining the organizational arrangement of the

antifraud personnel who are responsible for the investigation and

reporting of possible fraudulent life settlement acts and investigating

unresolved material inconsistencies between medical records and

insurance applications.

b. Antifraud plans submitted to the commissioner are privileged and confidential and

are not a public record and may not be subject to discovery or subpoena in a civil

or criminal action.
N.D. Cent. Code § 26.1-41-02 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-02
26.1-41-02. Security requirements - Authority of director of the department of transportation
Status: in_force

26.1-41-02. Security requirements - Authority of director of the department of

transportation.

1. The owner of a motor vehicle required to be registered in this state, or the owner of a

motor vehicle operated in this state by the owner or with the owner's permission, shall

continuously provide with respect to the motor vehicle during the period in which

operation is contemplated in this state security for payment of basic no-fault benefits

and the liabilities covered under the motor vehicle liability insurance.

2. The security may be provided by an insurance policy complying with this chapter

issued by an insurer authorized to transact business in this state, or, by self-insurance

as approved by the commissioner.

3. If the motor vehicle is registered in another state, the security may be provided by an

insurance policy issued by an insurer authorized to transact business in either this

state or the state in which the motor vehicle is registered, or, by self-insurance as

approved by the insurance department of the state in which the motor vehicle is

registered.

4. The owner of any motor vehicle who operates it or permits it to be operated in this

state when the owner knows or should know that the owner has failed to comply with

the requirement that the owner provide security under this chapter shall have the

motor vehicle registration revoked or suspended in accordance with procedures

established by the director of the department of transportation under the motor vehicle

law of this state until the owner provides the security required by this chapter.

5. An owner of a motor vehicle with respect to which security is required who fails to have

the security in effect at the time of an accident is absolutely liable at law for payment of

basic no-fault benefits and has all the rights and obligations of a basic no-fault insurer

under this chapter. This remedy is in addition to any other remedy that an injured

person may have against the owner.

6. An insurance policy which purports to provide coverage for basic no-fault benefits or is

sold with the representation that it fulfills the requirements of security as required by

this chapter is deemed to include all coverage required by this chapter.

7. The director of the department of transportation may supervise the enforcement of the

compulsory security requirements of this chapter and may adopt the rules necessary

in respect to the maintenance of the requirements.
N.D. Cent. Code § 26.1-05-04 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-04
26.1-05-04. Capital stock and surplus requirements of domestic stock company - Exceptions
Status: in_force

26.1-05-04. Capital stock and surplus requirements of domestic stock company -

Exceptions.

A stock insurance company may not be incorporated under this chapter unless it has an

authorized capital stock of at least five hundred thousand dollars and a surplus of at least five

hundred thousand dollars. A domestic stock insurance company may not issue any insurance

policy until at least fifty percent of the required capital stock, and all of the required surplus, has

been paid in, the residue of capital stock to be paid in within twelve months from the time of

filing the articles of incorporation. The commissioner, for good cause shown, may extend the

time of payment of the residue for the further period of one year. If the minimum capital stock

and surplus requirements at the time a stock insurance company incorporated under this

chapter were less than the minimum requirements provided by this section, the stock insurance

company shall increase its authorized and paid-in capital stock and surplus to the minimum

requirements under this section according to the following schedule:

1. Capital of two hundred fifty thousand dollars and surplus of two hundred fifty thousand

dollars by December 31, 1994.

2. Capital of three hundred seventy-five thousand dollars and surplus of three hundred

seventy-five thousand dollars by December 31, 1995.

3. Capital of five hundred thousand dollars and surplus of five hundred thousand dollars

by December 31, 1996.

Except as otherwise provided in this section, the total value of paid-in capital stock and surplus

of a stock insurance company organized under the laws of this state may not at any time be

depleted to an amount totaling less than one million dollars.
N.D. Cent. Code § 26.1-15.1-04 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-04
26.1-15.1-04. Representative form of government defined
Status: in_force

26.1-15.1-04. Representative form of government defined

A society has a representative form of government when:

1. It has a supreme governing body constituted in one of the following ways:

a. The supreme governing body is an assembly composed of delegates elected

directly by the members or at intermediate assemblies or conventions of

members of their representatives, together with other delegates as may be

prescribed in the society's laws. A society may provide for election of delegates

by mail. The elected delegates must constitute a majority in number and have not

less than two-thirds of the votes and not less than the number of votes required to

amend the laws of the society. The assembly must be elected and meet at least

once every four years and shall elect a board of directors to conduct the business

of the society between meetings of the assembly. Vacancies on the board of

directors between elections may be filled in the manner prescribed by the

constitution and laws of the society.

b. The supreme governing body is a board composed of persons elected by the

members, either directly or by their representatives in intermediate assemblies,

and any other persons prescribed in the constitution or laws of the society. A

society may provide for election of the board by mail. Each term of a board

member may not exceed four years. Vacancies on the board between elections

may be filled in the manner prescribed by the constitution or laws of the society. A

person filling the unexpired term of an elected board member is considered to be

an elected member. Those persons elected to the board must constitute a

majority in number and not less than the number of votes required to amend the

laws of the society. The board shall meet at least quarterly to conduct the

business of the society.

2. The officers of the society may be elected by either the supreme governing body or the

board of directors.

3. Only benefit members are eligible for election to the supreme governing body and the

board of directors.

4. Each voting member has one vote.

5. No vote may be cast by proxy.
N.D. Cent. Code § 26.1-22-12 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-12
26.1-22-12. Policy fee
Status: repealed

26.1-22-12. Policy fee

Repealed by S.L. 1989, ch. 357, § 3.
N.D. Cent. Code § 26.1-30-13 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-13
26.1-30-13. Statement of intention in policy is a warranty
Status: in_force

26.1-30-13. Statement of intention in policy is a warranty

A statement in an insurance policy which imports that it is intended to do or not to do a thing

which materially affects the risk is a warranty that the act or omission will take place.
N.D. Cent. Code § 26.1-15.1-01 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-01
26.1-15.1-01. Definitions
Status: in_force

26.1-15.1-01. Definitions

Whenever used in this chapter:

1. "Benefit contract" means the agreement for provision of benefits authorized by section

26.1-15.1-16, as that agreement is described in section 26.1-15.1-19.

2. "Benefit member" means an adult member designated by the laws or rules of the

society as a benefit member under a benefit contract.

3. "Certificate" means the document issued as written evidence of the benefit contract.

4. "Laws" means the society's articles of incorporation, constitution, and bylaws, however

designated, of the society.

5. "Lodge" means subordinate member units of the society, whether known as camps,

courts, councils, branches, or by any other designation.

6. "Premiums" means premiums, rates, dues, or other required contributions by whatever

name known, which are payable under the certificate.

7. "Rules" means all rules, regulations, or resolutions adopted by the supreme governing

body or board of directors which are intended to have general application to the

members of the society.

8. "Society" means fraternal benefit society, unless otherwise indicated.
N.D. Cent. Code § 26.1-20.1-10 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-10
26.1-20.1-10. Application of unearned premiums
Status: in_force

26.1-20.1-10. Application of unearned premiums

1. Whenever a financed insurance policy or assigned risk policy is canceled, the insurer

shall return whatever gross unearned premiums, computed on a pro rata basis, are

due under the insurance policy or assigned risk policy to the insurance premium

finance company for the account of the insured. The unearned premiums must be

returned within thirty days after the date of cancellation. This action by the insurer

satisfies the insurer's obligation under the insurance policy or assigned risk policy to

return unearned premiums.

2. If a premium is subject to an audit to determine the final premium amount, the gross

unearned premium must be calculated upon the premium deposited and the insurer

shall return whatever gross unearned premiums are due based upon the deposit

rather than the actual unearned premium to the insurance premium finance company

for the account of the insured or insureds.

3. If the crediting of returned premiums to the account of the insured results in a surplus

over the amount due from the insured, the insurance premium finance company must

refund any amount of one dollar or more to the insured within thirty days after receipt

of the returned premium.
N.D. Cent. Code § 26.1-02.1-05.2 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-05.2
26.1-02.1-05.2. Consent orders
Status: in_force

26.1-02.1-05.2. Consent orders

A person may enter a consent order by which such person, without admitting the conduct

alleged, consents to the imposition of an administrative penalty and when so requested agrees

to cease and desist the acts or omissions alleged in the complaint.
N.D. Cent. Code § 26.1-12-28 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-28
26.1-12-28. Annual statements and examinations of mutual insurance companies
Status: in_force

26.1-12-28. Annual statements and examinations of mutual insurance companies

Every mutual insurance company doing business in this state shall make its annual

statement and report in the form and submit to the examinations and furnish the information

required by the commissioner. As far as practicable, examinations of foreign mutual insurance

companies must be made in cooperation with the insurance departments of other states, and

the forms of annual reports must be such as are in general use throughout the United States.
N.D. Cent. Code § 26.1-26-53 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-53
26.1-26-53. Controlled business prohibited - Definition - Formula for determination
Status: in_force

26.1-26-53. Controlled business prohibited - Definition - Formula for determination

1. As used in this section, unless the context otherwise requires, "controlled business"

means insurance written on the interests of the licensee, licensee's immediate family,

or licensee's employer; or insurance covering the licensee, the members of the

licensee's immediate family, a business entity, or the officers, directors, substantial

stockholders, partners, or employees of such a business entity of which the licensee or

a member of the licensee's immediate family is an officer, a director, a substantial

stockholder, a partner, an associate, or an employee. "Controlled business" does not

include crop insurance business sold by a business entity licensed as an insurance

producer for crop insurance between August 1, 2001, and December 31, 2002.

2. The commissioner may not grant, renew, continue, or permit to continue any license if

the commissioner determines that the license is being or will be used by the applicant

or licensee for the purpose of writing controlled business. A license is deemed to have

been or intended to be used for the purpose of writing controlled business if the

commissioner determines that during any twelve-month period the aggregate

commissions earned from the controlled business exceeded thirty-five percent of the

aggregate commissions earned on all business written by the licensee during the

same period.

3. This section does not apply to insurance written in connection with credit transactions,

including title insurance.
N.D. Cent. Code § 26.1-12-23 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-23
26.1-12-23. Deficiency in assets - Assessments required
Status: in_force

26.1-12-23. Deficiency in assets - Assessments required

A mutual insurance company not possessed of assets at least equal to its unearned

premium reserve and other liabilities shall make an assessment upon its members liable to

assessment to provide for the deficiency. The assessment must be made against each such

member in proportion to the member's liability as expressed in the member's policy. The

commissioner, however, may relieve the company, by written order, from any assessment or

other proceedings to restore the assets during the time fixed in the order. The company shall

record in a book kept for that purpose the order for the assessment and a statement setting

forth the condition of the company at the date of the order, the amount of its cash assets and of

the notes of its policyholders or of other contingent funds liable to the assessment, the amount

of the assessment, and the particular losses or other liabilities for which the assessment is

made. The record must be made and signed by the directors who voted for the order before any

part of the assessment is collected, and any person liable for the assessment may inspect and

take a copy of the record.
N.D. Cent. Code § 26.1-11-01 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-01
26.1-11-01. Conditions to be complied with by foreign company before transacting insurance business in state
Status: in_force

26.1-11-01. Conditions to be complied with by foreign company before transacting

insurance business in state.

A foreign insurance company may not take any risk or transact insurance business in this

state, either directly or indirectly, until it has:

1. Deposited with the commissioner a certified copy of its articles of incorporation.

2. Deposited with the commissioner a statement of its financial condition and business in

the form and detail the commissioner requires, signed and sworn to by its president

and secretary or other similar officers.

3. Satisfied the commissioner that it is fully and legally organized under the laws of its

state or government to do the business which it proposes to transact.

4. Satisfied the commissioner, if it is a stock company, that it has a fully paid-up capital

stock and surplus at least equal to the stock and surplus required of domestic

companies transacting the same classes of insurance.

5. Satisfied the commissioner, if it is a mutual company, that it has complied with

subsection 7 of section 26.1-12-27.

6. Satisfied the commissioner that its assets are well invested and immediately available

for the payment of losses in this state and in making this determination the

commissioner may rely upon the provisions pertaining to authorized investments of

domestic insurance companies.

7. Satisfied the commissioner that it does not insure any single hazard for a sum larger

than one-tenth of its net assets.

8. Appointed the commissioner and the commissioner's successors, by a duly executed

instrument filed in the commissioner's office, its attorney upon whom all process in any

action or proceeding against it may be served and has agreed in the instrument that

any process that may be served upon its attorney is of the same force and validity as if

the process were served on the company and that the authority thereof continues in

force irrevocable so long as any liability of the company remains outstanding in this

state.

9. Agreed to appoint, and will appoint, as its insurance producers in this state only

residents of this state except as otherwise provided in chapter 26.1-26.

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

company organized or licensed in this state as to be confusing or misleading.
N.D. Cent. Code § 26.1-01-05 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-05
26.1-01-05. Reporting and review of medical malpractice claims, settlements, and judgments
Status: in_force

26.1-01-05. Reporting and review of medical malpractice claims, settlements, and

judgments.

1. A health care provider or the insurer of a health care provider, if any, shall report all

claims, settlements of claims, or final judgments against the health care provider to the

commissioner. The report must be made in the manner prescribed by the

commissioner and must provide those facts the commissioner deems necessary to

gather adequate information regarding claims, settlements of claims, and final

judgments against health care providers. For the purposes of this section, a "health

care provider" includes any person, corporation, facility, or institution licensed by this

state to provide health care or professional services as a physician, hospital, dentist,

professional or practical nurse, physician's aide, optometrist, podiatrist, chiropractor,

physical therapist, or psychologist, or an officer, employee, or agent thereof acting in

the course and scope of employment.

2. The commissioner shall forward copies of all reports required by this section to the

appropriate board of professional registration, examination, or licensure. That board

shall review all reports which it receives and may take any necessary disciplinary

action against a health care provider when the action is appropriate, including censure,

imposition of probation, or suspension or revocation of the health care provider's

license. The board shall conduct the review as an administrative hearing in the manner

provided in chapter 28-32, including the giving of appropriate notice.
N.D. Cent. Code § 26.1-16-27 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-27
26.1-16-27. Penalty
Status: in_force

26.1-16-27. Penalty

Any officer or agent of a benevolent society violating this chapter is guilty of a class A

misdemeanor.
N.D. Cent. Code § 26.1-12-02 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-02
26.1-12-02. Corporate name - Restrictions
Status: in_force

26.1-12-02. Corporate name - Restrictions

The name of a mutual insurance company organized under this chapter must contain the

word "mutual". A name which is so similar to any name already in use by any existing

corporation, limited liability company, company, or association organized or doing business in

this state as to be confusing or misleading is not permitted.
N.D. Cent. Code § 26.1-31.1-04 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-04
26.1-31.1-04. Books and records - Reinsurance intermediary-brokers
Status: in_force

26.1-31.1-04. Books and records - Reinsurance intermediary-brokers

1. For at least ten years after expiration of each contract of reinsurance transacted by the

reinsurance intermediary-broker, the reinsurance intermediary-broker will keep a

complete record for each transaction showing:

a. The type of contract, limits, underwriting restrictions, classes or risks, and

territory;

b. Period of coverage, including the effective date and the expiration date,

cancellation provisions and notice required of cancellation;

c. Reporting and settlement requirements of balances;

d. Rate used to compute the reinsurance premium;

e. Names and addresses of assuming reinsurers;

f. Rates of all reinsurance commissions, including the commissions on any

retrocessions handled by the reinsurance intermediary-broker;

g. Related correspondence and memoranda;

h. Proof of placement;

i. Details regarding retrocessions handled by the reinsurance intermediary-broker,

including the identity of retrocessionaires and percentage of each contract

assumed or ceded;

j. Financial records, including premium and loss accounts; and

k. When the reinsurance intermediary-broker procures a reinsurance contract on

behalf of a licensed ceding insurer:

(1) Directly from any assuming reinsurer, written evidence that the assuming

reinsurer has agreed to assume the risk; or

(2) If placed through a representative of the assuming reinsurer, other than an

employee, written evidence that the reinsurer has delegated binding

authority to the representative.

2. The insurer will have access and the right to copy and audit all accounts and records

maintained by the reinsurance intermediary-broker related to its business in a form

usable by the insurer.
N.D. Cent. Code § 26.1-18.1-05 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-05
26.1-18.1-05. Fiduciary responsibilities
Status: in_force

26.1-18.1-05. Fiduciary responsibilities

1. Any director, officer, employee, or partner of a health maintenance organization who

receives, collects, disburses, or invests funds in connection with the activities of the

organization is responsible for the funds in a fiduciary relationship to the organization.

2. If the commissioner deems it necessary for the security of the funds of a health

maintenance organization, the commissioner may require an official bond of each

officer and each employee of the organization in an amount not to exceed the sum of

money for which each is accountable.
N.D. Cent. Code § 26.1-36.12-16 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-16
26.1-36.12-16. Notification to claims administrator
Status: in_force

26.1-36.12-16. Notification to claims administrator

If the prior authorization review organization and the claims administrator are separate

entities, the prior authorization review organization shall notify, either electronically or in writing,

the appropriate claims administrator for the health benefit plan of any adverse determination

that is reversed on appeal.
N.D. Cent. Code § 26.1-33-33 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-33
26.1-33-33. Life policy transferable
Status: in_force

26.1-33-33. Life policy transferable

A life insurance policy may pass by transfer, will, or succession to any person, whether that

person has an insurable interest or not, and that person may recover upon the policy in

accordance with the terms of the policy. An insured under a group life insurance policy, pursuant

to agreement among the insured, the group policyholder, and the insurer, may make an

assignment of all or any part of the incidents of ownership held by the insured under the policy,

including any right to designate a beneficiary and any right to have an individual policy issued in

case of termination of employment. An assignment, whether made prior to or subsequent to July

1, 1971, is valid for the purpose of vesting in the assignee all the incidents of ownership

assigned, and entitles the insurer to deal with the assignee as the owner in accordance with the

policy, but without prejudice to the insurer on account of any payment made or individual policy

issued prior to receipt by the insurer of such notice as may be required by the policy.
N.D. Cent. Code § 26.1-48-03 — ND Code / Title 26.1 / Chapter 26.1-48 / Section 26.1-48-03
26.1-48-03. Aftermarket risk insurance requirements - Encumbrances
Status: in_force

26.1-48-03. Aftermarket risk insurance requirements - Encumbrances

1. An aftermarket risk insurance policy purchased pursuant to section 26.1-48-02 must

hold harmless all aviation manufacturers that manufactured, modified, maintained,

repaired, or altered the aircraft or aircraft component assembled or first sold in this

state.

2. The aviation manufacturer or seller of the aircraft or aircraft component may offer in

the sales contract aftermarket risk insurance based on continued choice of North

Dakota law. The aftermarket risk insurance option must be attached to the original

sales contract as a lien on the aircraft holding the first owner and each subsequent

owner financially responsible for the cost of purchasing and maintaining aftermarket

risk insurance and binding the owner to governance by North Dakota law. An

aftermarket insurance obligation must be recorded as a lien on the aircraft at the

federal aviation administration aircraft registry.
N.D. Cent. Code § 26.1-27.1-06 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-06
26.1-27.1-06. Examination of insurer-covered entity
Status: in_force

26.1-27.1-06. Examination of insurer-covered entity

1. During an examination of a covered entity as provided for in chapter 26.1-03, 26.1-17,

or 26.1-18.1, the commissioner shall examine any contract between the covered entity

and a pharmacy benefits manager and any related record to determine if the payment

received by the pharmacy benefits manager which the covered entity received has

been applied toward reducing the covered entity's rates or has been distributed to

covered individuals.

2. To facilitate the examination, the covered entity shall disclose annually to the

commissioner the benefits of the payment received by the pharmacy benefits manager

received under any contract and shall describe the manner in which the payment

received by the pharmacy benefits manager is applied toward reducing rates or is

distributed to covered individuals.

3. Any information disclosed to the commissioner under this section is considered a trade

secret under chapter 47-25.1. This section does not prevent the disclosure of a final

order issued against a pharmacy benefits manager. Such order is an open record.
N.D. Cent. Code § 26.1-05-22 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-22
26.1-05-22. Liabilities of officers and directors of domestic company
Status: in_force

26.1-05-22. Liabilities of officers and directors of domestic company

Any officer or director of a domestic insurance company who makes or authorizes an

investment or loan in violation of section 26.1-05-19 or 26.1-05-20 is liable personally to the

stockholders of a stock insurance company, or to the policyholders of a mutual insurance

company, for any loss occasioned thereby. If a company is under liability for losses equal to its

net assets and the president or directors, knowing of the liability, make or assent to further

insurance, they are liable personally for any loss under the insurance. If the directors allow to be

insured on a single risk a larger sum than that permitted under section 26.1-03-01, they are

liable for any loss thereon above the amount the company might insure lawfully, unless the

excess is reinsured as required by that section.
N.D. Cent. Code § 26.1-13-17 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-17
26.1-13-17. Classification of property for insurance purposes
Status: in_force

26.1-13-17. Classification of property for insurance purposes

A county mutual insurance company may classify the property insured by the policies at the

time of issuance under different rates corresponding, as nearly as may be, to the greater or

lesser risk from fire or lightning and loss which may attach to each of the buildings insured.
N.D. Cent. Code § 26.1-25-06 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-06
26.1-25-06. Rating organizations
Status: repealed

26.1-25-06. Rating organizations

Repealed by S.L. 1991, ch. 302, § 26.
N.D. Cent. Code § 26.1-05-10 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-10
26.1-05-10. Equity security defined
Status: in_force

26.1-05-10. Equity security defined

"Equity security" as used in sections 26.1-05-11 through 26.1-05-15 means any stock or

similar security; any security convertible, with or without consideration, into such a security, or

carrying any warrant or right to subscribe to or purchase such a security; any such warrant or

right; or any other security which the commissioner deems to be of similar nature and considers

necessary or appropriate to treat as an equity security, by any rules the commissioner adopts in

the public interest or for the protection of investors.
N.D. Cent. Code § 26.1-26.7-02 — ND Code / Title 26.1 / Chapter 26.1-26.7 / Section 26.1-26.7-02
26.1-26.7-02. Licensure of vendors
Status: in_force

26.1-26.7-02. Licensure of vendors

1. A vendor shall hold a limited lines license under this section to sell or offer coverage

under a policy of portable electronics insurance.

2. A limited lines license issued under this section is limited to authorizing a vendor and

the vendor's employees or authorized representatives to sell or offer coverage under a

policy of portable electronics insurance to a customer to whom the vendor and the

vendor's employees or authorized representatives sells or leases a portable electronic

device or services related to the use of a portable electronic device.

3. A limited lines license issued under this section authorizes a vendor and the vendor's

employees or authorized representatives to sell or offer portable electronics insurance

coverage at each location at which the vendor engages in portable electronics

transactions.

4. The vendor shall maintain a registry of locations that are authorized to sell or solicit

portable electronics insurance coverage in this state. Upon request by the

commissioner, and with five days' notice to the vendor, the vendor shall provide the

registry to the commissioner for inspection and examination.

5. Notwithstanding any other provision of law, a license issued under this section

authorizes the licensee and the licensee's employees or authorized representatives to

engage only in those activities that are permitted in this chapter in connection with the

business of insurance unless authorized to do so under an existing license issued by

the commissioner.

6. A vendor, and the vendor's employees or authorized representatives, are exempt from

the continuing education requirements of section 26.1-26-31.1.
N.D. Cent. Code § 26.1-04-02 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-02
26.1-04-02. Unfair methods of competition or unfair and deceptive acts or practices prohibited
Status: in_force

26.1-04-02. Unfair methods of competition or unfair and deceptive acts or practices

prohibited.

A person may not engage in this state in any trade practice defined in this chapter as, or

determined pursuant to this chapter to be, an unfair method of competition or an unfair or

deceptive act or practice in the business of insurance.
N.D. Cent. Code § 26.1-12.2-05 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-05
26.1-12.2-05. Alternative plan of conversion
Status: in_force

26.1-12.2-05. Alternative plan of conversion

The governing body of the converting mutual company may adopt a plan of conversion that

does not rely in whole or in part upon issuing nontransferable subscription rights to members to

purchase stock of the converting stock company if the commissioner finds the plan of

conversion does not prejudice the interests of the members, is fair and equitable, and is not

inconsistent with the purpose and intent of this chapter. Subject to a finding of the commissioner

that an alternative plan of conversion is fair and equitable and is not inconsistent with the

purpose and intent of this chapter, an alternative plan of conversion may:

1. Include the merger of a domestic mutual insurance company into a domestic or foreign

stock insurance company.

2. Provide for the issuance of transferable or redeemable subscription rights.

3. Provide for issuing stock, cash, policyholder credits, or other consideration, or any

combination of the foregoing, to policyholders instead of subscription rights.

4. Set forth another plan of conversion containing any other provisions approved by the

commissioner.
N.D. Cent. Code § 26.1-26-48 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-48
26.1-26-48. Commissioner may make examinations and investigations
Status: in_force

26.1-26-48. Commissioner may make examinations and investigations

Whenever the commissioner believes that this chapter has been violated, the

commissioner, at the expense of the insurer involved, may examine, at the offices of the insurer

or insurance producer, whether located within or without this state, all books, records, and

papers of the insurer or insurance producer and any books, records, and papers of any insured

within this state, and may examine under oath, the officers, managers, and insurance producers

of the insurer, or the insured, as to the violation.
N.D. Cent. Code § 26.1-33-25 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-25
26.1-33-25. Nonforfeiture benefits for indeterminate premium plans
Status: in_force

26.1-33-25. Nonforfeiture benefits for indeterminate premium plans

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

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

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

values cannot be determined by the methods described in sections 26.1-33-18 through

26.1-33-24, then:

1. The commissioner must be satisfied that the benefits provided under the plan are

substantially as favorable to policyholders and insureds as the minimum benefits

otherwise required by sections 26.1-33-18 through 26.1-33-24;

2. The commissioner must be satisfied that the benefits and the pattern of premiums of

that plan are not such as to mislead prospective policyholders or insureds;

3. The cash surrender values and paid-up nonforfeiture benefits provided by the plan

may not be less than the minimum values and benefits required for the plan computed

by a method consistent with the principles of sections 26.1-33-18 through 26.1-33-28,

as determined by rules adopted by the commissioner; and

4. Notwithstanding any other provision in the laws of this state, any policy, contract, or

certificate providing life insurance under any plan must be affirmatively approved by

the commissioner before it can be marketed, issued, delivered, or used in this state.
N.D. Cent. Code § 26.1-36.3-12 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-12
26.1-36.3-12. Restoration of terminated coverage
Status: in_force

26.1-36.3-12. Restoration of terminated coverage

The commissioner may adopt rules to require small employer carriers, as a condition of

transacting business with small employers in this state after August 1, 1993, to reissue a health

benefit plan to any small employer whose health benefit plan has been terminated or has not

been renewed by the carrier after January 1, 1994. The rules may contain terms for the reissue

of coverage as the commissioner determines necessary to provide continuity of coverage to

small employers.
N.D. Cent. Code § 26.1-39-09.1 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-09.1
26.1-39-09.1. Certain property and casualty insurance programs to be marketed through resident agents or brokers - Service fee
Status: repealed

26.1-39-09.1. Certain property and casualty insurance programs to be marketed

through resident agents or brokers - Service fee.

Repealed by S.L. 1999, ch. 252, § 31.
N.D. Cent. Code § 26.1-41-18 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-18
26.1-41-18. Assigned claims plan
Status: in_force

26.1-41-18. Assigned claims plan

1. Basic no-fault insurers authorized to provide basic no-fault benefits in this state shall

organize, participate in, and maintain an assigned claims plan to provide that an

injured person who suffers economic loss and is eligible for basic no-fault benefits

under section 26.1-41-06, other than a person not entitled to benefits under section

26.1-41-07, may obtain basic no-fault benefits through the plan if:

a. Basic no-fault benefits are not applicable to the injury for some reason other than

those specified in section 26.1-41-07; or

b. Basic no-fault benefits applicable to the injury are inadequate to provide the

contracted-for benefits because of financial inability of a basic no-fault insurer to

fulfill its obligations.

Payments made by the assigned claims plan pursuant to this subsection constitute

covered claims under chapter 26.1-42.1.

2. If a claim qualifies for assignment under this section, the assigned claims plan or any

basic no-fault insurer to whom the claim is assigned is subrogated to the rights of the

claimant against any person liable, and against any basic no-fault insurer, its

successor in interest, or substitute legally obligated to provide basic no-fault benefits to

the claimant, for basic no-fault benefits provided by the assignment.

3. The assigned claims plan must contain any rules for the operation of the plan and for

the equitable distribution of costs as may be approved by the commissioner. Any claim

brought through the plan must be assigned to a basic no-fault insurer in accordance

with the rules and the insurer, after assignment, has the rights and obligations it would

have had if prior to the assignment it has issued security providing basic no-fault

benefits applicable to the loss. Any person accepting benefits under this section has

the rights and obligations as that person would have had under security issued to that

person providing basic no-fault benefits.

4. Any person who sustains accidental bodily injury while an occupant in or as a result of

being struck by any motor vehicle is not eligible for benefits under the assigned claims

plan if the person owned a motor vehicle on the date of loss and failed to provide

continuous security for the motor vehicle as required by section 26.1-41-02.

5. Any person who requests suspension of coverage in accordance with section

26.1-41-03 is not ineligible for assigned claims plan benefits while the suspension is in

effect if bodily injury is sustained while an occupant in or as a result of being struck by

a motor vehicle not owned by that person.
N.D. Cent. Code § 26.1-04-17 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-17
26.1-04-17. Revocation or suspension of insurance producer's license for misrepresentation or discrimination
Status: in_force

26.1-04-17. Revocation or suspension of insurance producer's license for

misrepresentation or discrimination.

Upon satisfactory evidence of the violation of any provision of this chapter relating to

misrepresentation or discrimination by any insurance producer of any insurance or surety

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

however constituted or entitled, the commissioner may suspend or revoke the license of the

offending insurance producer.
N.D. Cent. Code § 26.1-26-31.3 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.3
26.1-26-31.3. Accreditation of courses
Status: in_force

26.1-26-31.3. Accreditation of courses

The commissioner shall adopt by rule criteria for the accreditation of courses for continuing

or prelicensure education. Applications for accreditation of any course offered in this state for

continuing or prelicensure education must be submitted to the commissioner within the time

prescribed by rule and on forms prescribed by rule and with a fee of fifty dollars. The advisory

task force shall recommend to the commissioner whether any course satisfies the criteria for

accreditation and the number of credit hours to be assigned to the course. The commissioner

shall make a final determination as to accreditation and assignment of credit hours for courses.
N.D. Cent. Code § 26.1-25-13 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-13
26.1-25-13. Rate administration
Status: in_force

26.1-25-13. Rate administration

1. The commissioner shall adopt reasonable rules and statistical plans, reasonably

adopted to each of the rating systems on file with the commissioner, which may be

modified from time to time and which must be used thereafter by each insurer in the

recording and reporting of its loss and countrywide expense experience, in order that

the experience of all insurers may be made available at least annually in such form

and detail as may be necessary to aid the commissioner in determining whether rating

systems comply with the standards set forth in section 26.1-25-03. The rules and plans

may also provide for the recording and reporting of expense experience items which

are specially applicable to this state and are not susceptible of determination by a

prorating of countrywide expense experience. In adopting the rules and plans, the

commissioner shall give due consideration to the rating systems on file with the

commissioner and, in order that the rules and plans may be as uniform as is

practicable among the several states, to the rules and to the form of the plans used for

the rating systems in other states. No insurer may be required to record or report its

loss experience on a classification basis that is inconsistent with the rating system filed

by it. The commissioner may designate one or more advisory organizations or other

agencies to assist the commissioner in gathering such experience and making

compilations thereof, and the compilations must be made available, subject to

reasonable rules adopted by the commissioner, to insurers and advisory organizations.

2. Reasonable rules and plans may be adopted by the commissioner for the interchange

of data necessary for the application of rating plans.

3. In order to further uniform administration of rate regulatory laws, the commissioner and

every insurer and advisory organization may exchange information and experience

data with insurance supervisory officials, insurers, and advisory organizations in other

states and may consult with them with respect to ratemaking and the application of

rating systems.

4. The commissioner may adopt reasonable rules necessary to effect the purposes of

this chapter.
N.D. Cent. Code § 26.1-11-09 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-09
26.1-11-09. Procedure for suspension or revocation of foreign company's authority - Effect
Status: in_force

26.1-11-09. Procedure for suspension or revocation of foreign company's authority -

Effect.

Whenever it appears to the commissioner, either upon complaint or otherwise, that any

foreign insurance company is in violation of section 26.1-02-23 or 26.1-11-08, the commissioner

may issue a temporary order suspending the certificate of authority granted to a foreign

insurance company if the commissioner deems it necessary or appropriate to the public interest

to do so. Any company aggrieved by a temporary order may request a hearing before the

commissioner within ten days after the company receives the order. If the commissioner

revokes the certificate of authority granted to a foreign insurance company, the commissioner

shall publish a notice of revocation once each week for three successive weeks in a newspaper

published at the state capital. Thereafter, no new business may be done by the company, or by

its agents, in this state until its certificate of authority is restored by the commissioner. The

commissioner, after a hearing and for good cause, may cancel the revocation and restore the

certificate.
N.D. Cent. Code § 26.1-36-37.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-37.2
26.1-36-37.2. Loss ratios - Rules
Status: in_force

26.1-36-37.2. Loss ratios - Rules

For all policies providing hospital, surgical, medical, or major medical benefit, an insurance

company, a nonprofit health service corporation, a fraternal benefit society, and any other entity

providing a plan of health insurance or health benefit subject to state insurance regulation shall

return benefits to group policyholders in the aggregate of not less than seventy percent of

premium received and to individual policyholders in the aggregate of not less than fifty-five

percent of premium received. The commissioner shall adopt rules to establish these minimum

standards on the basis of incurred claims experienced and earned premiums for the entire

period for which rates are computed to provide coverage in accordance with accepted actuarial

principles and practices. This section does not apply to any contract or plan of insurance that

provides exclusively for accident, disability income insurance, specified disease, hospital

confinement indemnity, or other limited benefit health insurance.
N.D. Cent. Code § 26.1-11-12 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-12
26.1-11-12. Additional means of service
Status: in_force

26.1-11-12. Additional means of service

1. Service in any action, suit, or proceeding is, in addition to the manner provided in

section 26.1-01-04, valid if served upon any person within this state who on behalf of

the insurance company is:

a. Soliciting insurance;

b. Making, issuing, or delivering any insurance contract; or

c. Collecting or receiving any premium membership fee, assessment, or other

consideration for insurance.

2. A copy of the process must be sent within ten days thereafter by registered mail by the

plaintiff or the plaintiff's attorney, to the defendant at the defendant's last-known

principal place of business.

3. The defendant's receipt, or the receipt issued by the post office with which the letter is

registered or certified, showing the name of the sender of the letter, the name and

address of the person to whom the letter is addressed, and the affidavit of the person

mailing the letter showing a compliance herewith must be filed with the clerk of the

court in which the action is pending on or before the date the defendant is required to

appear or within such further time as the court allows.
N.D. Cent. Code § 26.1-12.1-15 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-15
26.1-12.1-15. Foreign mutual insurance holding company - Reorganization
Status: in_force

26.1-12.1-15. Foreign mutual insurance holding company - Reorganization

A domestic mutual insurance company may reorganize with a foreign mutual insurance

holding company that is created or exists under the laws of another state by complying with

chapter 26.1-12.1. The commissioner may waive any provision of chapter 26.1-12.1 if the

commissioner determines the provision to be unnecessary for the protection of eligible

members.

A plan of reorganization under this section must comply with the requirements and

standards of section 26.1-12.1-06 and be approved by the eligible members of the domestic

mutual insurance company as a reorganizing insurer in accordance with subsection 1 of section
N.D. Cent. Code § 26.1-01-03.2 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-03.2
26.1-01-03.2. Injunctive authority
Status: in_force

26.1-01-03.2. Injunctive authority

The commissioner may bring an action in the district court of Burleigh County to enjoin any

acts or practices which are prohibited under this title, upon not less than eight days' notice to the

defendants named in the action.
N.D. Cent. Code § 26.1-04-09 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-09
26.1-04-09. Authority of commissioner
Status: in_force

26.1-04-09. Authority of commissioner

The commissioner may examine and investigate the affairs of every person engaged in the

business of insurance in this state to determine whether the person has been or is engaged in

any unfair method of competition or in any unfair or deceptive act or practice prohibited by

section 26.1-04-02.
N.D. Cent. Code § 26.1-34-10 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-10
26.1-34-10. Exemptions from annuity nonforfeiture provisions
Status: in_force

26.1-34-10. Exemptions from annuity nonforfeiture provisions

Sections 26.1-34-01 through 26.1-34-09 do not apply to any reinsurance, group annuity

purchased under a retirement plan or plan of deferred compensation established or maintained

by an employer, including a partnership, limited liability company, or sole proprietorship, or by an

employee organization, or by both, other than a plan providing individual retirement accounts or

individual retirement annuities under section 408 of the federal Internal Revenue Code, as

amended, premium deposit fund, variable annuity, investment annuity, immediate annuity,

deferred annuity contract after annuity payments have commenced, or reversionary annuity, nor

to any contract delivered outside this state.
N.D. Cent. Code § 26.1-26-20 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-20
26.1-26-20. Nonresident licensing
Status: in_force

26.1-26-20. Nonresident licensing

1. Unless denied licensure pursuant to this chapter, the commissioner shall issue a

nonresident person a nonresident insurance producer license if:

a. The person is currently licensed as a resident and is in good standing in the

person's home state;

b. The person has submitted the proper request for licensure and has paid the fees

required by section 26.1-01-07;

c. The person has submitted or transmitted to the commissioner either the person's

home state application for licensure or a completed uniform application; and

d. The person's home state awards nonresident insurance producer licenses to

residents of this state on the same basis.

2. The commissioner may verify the insurance producer's licensing status through the

insurance producer database maintained by the national association of insurance

commissioners, its affiliates, or subsidiaries.

3. A nonresident insurance producer who moves from one state to another state or a

resident insurance producer who moves from this state to another state shall file a

change of address and provide certification from the new resident state within thirty

days of the change of legal residence. A fee or license application is not required.

4. Notwithstanding any other provision of this chapter, a person licensed as a surplus

lines insurance producer in the person's home state is entitled to receive a nonresident

surplus lines insurance producer license pursuant to subsection 1. Except as to

subsection 1, nothing in this section otherwise amends or supersedes any provision of

5. Notwithstanding any other provision of this chapter, a person licensed as a limited

lines credit insurance or other type of limited lines insurance producer in the person's

home state is entitled to receive a nonresident insurance producer license, pursuant to

subsection 1, granting the same scope of authority as granted under the license

issued by the insurance producer's home state. For the purpose of this subsection,

limited lines insurance is any authority granted by the home state which restricts the

authority of the license to less than the total authority prescribed in the associated

major lines pursuant to section 26.1-26-11.
N.D. Cent. Code § 26.1-20-02 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-02
26.1-20-02. Capital stock and surplus requirement
Status: in_force

26.1-20-02. Capital stock and surplus requirement

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

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

on real property, may not be incorporated unless it has an authorized capital of not less than five

hundred thousand dollars and a surplus of not less than five hundred thousand dollars if a stock

company, and a surplus of not less than five hundred thousand dollars if a mutual company. If

the capital or surplus requirements at the time the company was incorporated under this chapter

were less than the minimum requirements provided by this section, the company may maintain

authorized capital or surplus which satisfies the capital stock or surplus requirements in effect at

that time. It may issue no policy or insurance until at least fifty percent of the minimum capital

stock required by this section, and all the surplus required, have been paid in, the residue of

capital stock to be paid in within twelve months from the time of filing the articles of

incorporation, but the commissioner, for good cause shown, may extend the time of payment of

the residue for the further period of one year.
N.D. Cent. Code § 26.1-47-04.1 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-04.1
26.1-47-04.1. Maintenance of certification
Status: in_force

26.1-47-04.1. Maintenance of certification

1. As used in this section, the terms "continuing medical education", "maintenance of

certification", "physician", and "specialty medical board certification" have the same

meaning as provided under section 23-16-18.

2. A health care insurer may not deny reimbursement to or prevent a physician from

being a preferred provider based solely on a physician's decision to not participate in

maintenance of certification, including basing a physician's network participation on

any form of maintenance of certification participation or status.

3. A health care insurer may not discriminate with respect to reimbursement levels based

solely on a physician's decision to not participate in any form of maintenance of

certification.
N.D. Cent. Code § 26.1-36-08.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-08.1
26.1-36-08.1. Alternative group health policy and health service contract substance abuse coverage
Status: in_force

26.1-36-08.1. Alternative group health policy and health service contract substance

abuse coverage.

1. As an alternative to the substance abuse coverage required under subsection 2 of

section 26.1-36-08, an insurance company, a nonprofit health service corporation, or a

health maintenance organization may provide substance abuse coverage under this

section.

2. The provisions of section 26.1-36-08 apply to this alternative, except:

a. In addition to the inpatient treatment, treatment by partial hospitalization, and

outpatient treatment coverage required under section 26.1-36-08, the coverage

must include residential treatment.

b. In the case of coverage for inpatient treatment, the benefits must be provided for

a minimum of forty-five days of services covered under this section and section

26.1-36-09 in any calendar year.

c. For the purpose of computing the period for which benefits are payable for a

combination of inpatient and partial hospitalization, no more than twenty-three

days of inpatient treatment benefits required under subdivision a may be traded

for treatment by partial hospitalization.

d. In the case of coverage for residential treatment, the benefits must be provided

for a minimum of sixty days of services covered under this section in any

calendar year. This residential treatment must be provided by an addiction

treatment program licensed under chapter 50-31. If an individual receiving

residential treatment services requires more than sixty days of residential

treatment services, unused inpatient treatment benefits provided for under

subdivision b may be traded for residential treatment benefits. For the purpose of

computing the period for which benefits are payable, each day of inpatient

treatment is equivalent to two days of treatment by a residential treatment

program, provided that no more than twenty-three days of inpatient treatment

benefits required by this section may be traded for residential treatment benefits

required under this section.
N.D. Cent. Code § 26.1-42.1-04 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-04
26.1-42.1-04. Board of directors
Status: in_force

26.1-42.1-04. Board of directors

1. The board of directors of the association consists of a minimum of five and a maximum

of nine persons serving terms as established in the plan of operation. The members of

the board must be selected by member insurers, subject to the approval of the

commissioner. A vacancy on the board must be filled for the remaining period of the

unexpired term by a majority vote of the remaining board members, subject to the

approval of the commissioner. If the initial board members are not selected within sixty

days after August 1, 1999, the commissioner may appoint the initial members of the

board.

2. In approving selections to the board, the commissioner shall consider at least whether

all member insurers are fairly represented.

3. Every member of the board may be reimbursed from the assets of the association for

expenses incurred by the member in the course of the member's official duties.
N.D. Cent. Code § 26.1-27-05 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-05
26.1-27-05. Written agreement required - Trust agreement - Retention
Status: in_force

26.1-27-05. Written agreement required - Trust agreement - Retention

No person may act as an administrator without a written agreement between the

administrator and the insurer. The administrator and the insurer shall retain the written

agreement as part of their official records for the duration of the agreement and five years

thereafter. When a policy is issued to a trustee or trustees, the administrator shall furnish a copy

of the trust agreement and any amendments thereto to the insurer. The administrator and the

insurer shall retain a copy of the trust agreement, with amendments, as part of their official

records for the duration of the policy and five years thereafter.
N.D. Cent. Code § 26.1-05-34 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-34
26.1-05-34. Reciprocal states - Restrictions on domestic companies - Exceptions
Status: in_force

26.1-05-34. Reciprocal states - Restrictions on domestic companies - Exceptions

As used in this section, "reciprocal state" means a state the laws of which prohibit an

insurance company domiciled therein from insuring the lives or persons of residents of, or

property or operations located in, the state of North Dakota unless it holds a valid and subsisting

certificate of authority issued by the insurance commissioner of this state. The prohibition may

be subject to the exceptions to this section.

A domestic insurance company may not enter into an insurance contract upon the life or

person of a resident of, or property or operations located in, a reciprocal state unless it is

authorized pursuant to the laws of that state to transact such insurance therein. The

commissioner shall annually mail notice to every domestic insurance company, specifying the

reciprocal states.

The exceptions to this section are:

1. Contracts entered into when the prospective insurant is personally present in the state

in which the insurance company is authorized to transact insurance when the insurant

signs the application.

2. The issuance of certificates under a lawfully transacted group life or group disability

policy, when the master policy was entered into a state in which the insurance

company was then authorized to transact insurance.

3. The removal or continuance in force, with or without modification, of contracts

otherwise lawful and which were not originally executed in violation of this section.
N.D. Cent. Code § 26.1-26.9-04 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-04
26.1-26.9-04. Authority of owners
Status: in_force

26.1-26.9-04. Authority of owners

1. Employees and authorized representatives of an owner may sell, solicit, and offer

self-service storage insurance to occupants and are not subject to licensure as an

insurance producer under this chapter if:

a. The owner obtains a limited lines license to authorize the owner's employees and

authorized representatives to sell, solicit, and offer self-service storage insurance

under this chapter.

b. The owner files an acknowledgment with the commissioner in a form and manner

directed by the commissioner that the owner's counter sales employees and

authorized representatives act on the owner's behalf and the owner is

responsible for any representations made by the counter sales employees or

authorized representatives relating to the self-service storage insurance offered

through the owner. The acknowledgment must state the commissioner may take

any administrative action included in this title.

c. The insurer issuing the self-service storage insurance or a supervising entity

supervises the development of a training program for employees and authorized

representatives of the owner. The training required by this subdivision:

(1) Must be delivered to employees and authorized representatives of the

owner who are engaged directly in the activity of selling, soliciting, or

offering self-service storage insurance, and the training materials must be

maintained by the owner and made available to the commissioner for

inspection upon request.

(2) Must include providing each employee and authorized representative with

basic instruction about the self-service storage insurance offered to

customers and the disclosures required under section 26.1-26.9-03; and

(3) May be provided in electronic form, provided the owner or supervising entity

implements a supplemental education program regarding the self-service

storage insurance conducted and overseen by a licensed producer.

d. An employee or authorized representative of an owner may not advertise,

represent, or otherwise be held out to the public as a nonlimited lines-licensed

insurance producer, unless otherwise licensed.

2. An owner's employees and authorized representatives may not be paid directly by an

insurance company, or be paid a commission or any other compensation for the sale

of self-service storage insurance. This section does not prevent an owner from

including the results of selling, soliciting, or offering self-service storage insurance in

an overall performance compensation incentive program for employees and

authorized representatives.

3. The owner may bill and collect charges for self-service storage insurance coverage.

Any charge to the occupant for coverage not included in the cost of the rental of a

space must be separately itemized on the occupant's bill. If the self-service storage

insurance coverage is included with the lease of a space, the owner clearly and

conspicuously shall disclose to the occupant, on the rental invoice or elsewhere, any

self-service storage insurance coverage included with the rental of a space. An owner

billing and collecting the charges is not required to maintain the funds in a segregated

account if the owner is authorized by the insurer to hold the funds in an alternative

manner. All premiums received by an owner from an occupant for the sale of

self-service storage insurance must be considered funds held by the owner in a

fiduciary capacity for the benefit of the insurer. An owner may receive compensation

for billing and collection services.
N.D. Cent. Code § 26.1-03-08 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-08
26.1-03-08. Statements of receiver of company
Status: in_force

26.1-03-08. Statements of receiver of company

A receiver of an insurance company doing business in this state, on or before June thirtieth

of each year, and at any other time, when required to do so by the commissioner, shall make

and file a statement of the assets and liabilities of the company and of the income and

expenditures during the receivership in the same manner and form as is required by this chapter

from the officers of insurance companies. A receiver is subject to the same penalty for the failure

or refusal to make and file the statement.
N.D. Cent. Code § 26.1-12.1-12 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-12
26.1-12.1-12. Sale of stock and payment of dividends
Status: in_force

26.1-12.1-12. Sale of stock and payment of dividends

No solicitation for the sale of any of the stock of the reorganized insurer, or of an

intermediate stock holding company of the mutual insurance holding company, may be made

without the commissioner's prior written approval. Dividends and other distributions to the

shareholders or members of the reorganized mutual insurance company or of an intermediate

stock holding company may not be made except in compliance with sections 26.1-10-05 and

26.1-10-05.1.
N.D. Cent. Code § 26.1-21-01 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-01
26.1-21-01. Definitions
Status: in_force

26.1-21-01. Definitions

As used in this chapter:

1. "Blanket bond" means a bond that covers collectively all public employees and public

officials.

2. "Fund" means the state bonding fund.

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

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

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

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

international peace among the nations of the world.

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

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

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

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

6. "Public employee" means an individual employed by a state agency or any political

subdivision, an officer or employee eligible under section 57-15-56, an employee

under section 61-16.1-05, or an officer or employee of an international peace garden.

The term does not include an individual employed by an occupational and professional

board or commission under title 43 or by the state bar association.

7. "Public official" means an elected or appointed officer or deputy of a state agency or a

political subdivision. The term does not include an officer of an occupational and

professional board or commission under title 43 or of the state bar association.

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

industry, or institution and the international peace garden.
N.D. Cent. Code § 26.1-26-11 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-11
26.1-26-11. License of insurance producer - Lines of insurance
Status: in_force

26.1-26-11. License of insurance producer - Lines of insurance

An insurance producer or surplus lines insurance producer may receive a license to market

products under one or more of the following lines:

1. Life means insurance coverage on human lives, including benefits of endowment,

fixed and indexed annuities, and credit life.

2. Accident and health or sickness means insurance coverage for sickness, disease,

injury, accidental death, and disability.

3. Property means insurance coverage for direct and consequential loss of or damage to

property of every kind.

4. Casualty means insurance coverage against legal liability, including that for death,

injury, or disability or damage to real or personal property.

5. Variable life and variable annuity means insurance coverage provided under variable

life insurance contracts and variable annuities.
N.D. Cent. Code § 26.1-17-25 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-25
26.1-17-25. Rate requirements
Status: in_force

26.1-17-25. Rate requirements

Rates must cover reasonably anticipated claims, cover reasonable costs of operation and

overhead expenses, and maintain contingency reserves at a proper level of not less than the

sum of incurred claims and operating and overhead expenses for at least two months, but not

more than four months. Rates may not be excessive, inadequate, or unfairly discriminatory.
N.D. Cent. Code § 26.1-22-18 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-18
26.1-22-18. Arbitration of loss
Status: repealed

26.1-22-18. Arbitration of loss

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-36.1-05 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-05
26.1-36.1-05. Medicare supplement policy disclosure standards
Status: in_force

26.1-36.1-05. Medicare supplement policy disclosure standards

1. To provide for full and fair disclosure in the sale of Medicare supplement policies, no

Medicare supplement policy or certificate may be delivered or issued for delivery in

this state unless an outline of coverage is delivered to the applicant at the time

application is made.

2. The commissioner shall prescribe the format and content of the outline of coverage

required by subsection 1. For purposes of this section, "format" means style,

arrangement, and overall appearance, including such items as the size, color, and

prominence of type and the arrangement of text and captions. The outline of coverage

must include:

a. A description of the principal benefits and coverage provided in the policy.

b. A statement of the exceptions, reductions, and limitations contained in the policy.

c. A statement of the renewal provisions, including any reservation by the insurer of

a right to change premiums.

d. A statement that the outline of coverage is a summary of the policy issued or

applied for and that the policy should be consulted to determine governing

contractual provisions.

3. The commissioner may prescribe by rule a standard form and the contents of an

informational brochure for persons eligible for Medicare which is intended to improve

the buyer's ability to select the most appropriate coverage and improve the buyer's

understanding of Medicare. Except in the case of direct response insurance policies,

the commissioner may require by rule that the information brochure be provided to any

prospective insureds eligible for Medicare concurrently with the delivery of the outline

of coverage. With respect to direct response insurance policies, the commissioner may

require by rule that the prescribed brochure be provided upon request to any

prospective insureds eligible for Medicare, but in no event later than the time of policy

delivery.

4. The commissioner may adopt rules for captions or notice requirements, determined to

be in the public interest and designed to inform prospective insureds that particular

insurance coverages are not Medicare supplement coverages, for all accident and

health insurance policies sold to persons eligible for Medicare, other than:

a. Medicare supplement policies; or

b. Disability income policies.

5. The commissioner may also adopt rules to govern the full and fair disclosure of the

information in connection with the replacement of accident and sickness policies,

subscriber contracts, or certificates by persons eligible for Medicare.
N.D. Cent. Code § 26.1-03-19.5 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.5
26.1-03-19.5. Conflict of interest
Status: in_force

26.1-03-19.5. Conflict of interest

No examiner may 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 must not be

construed to automatically preclude an examiner from being:

1. A policyholder or claimant under an insurance policy.

2. A grantor of a mortgage or similar instrument on the examiner's residence to a

regulated entity if done under customary terms and in the ordinary course of business.

3. An investment owner in shares of regulated diversified investment companies.

4. A settlor or beneficiary of a "blind trust" into which any otherwise impermissible

holdings have been placed.

Notwithstanding the requirements of this section, 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 said persons may

from time to time be similarly employed or retained by persons subject to examination under this

chapter.
N.D. Cent. Code § 26.1-16-18 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-18
26.1-16-18. Incontestability of certificate - Responsibility upon suicide
Status: in_force

26.1-16-18. Incontestability of certificate - Responsibility upon suicide

A certificate of membership is incontestable after one year from its date of issue except for

fraud, nonpayment of assessments, or naval or military service in time of war. Death from acute

or chronic disease occurring more than one year after the date of issue of a certificate may not

be a ground for nonpayment of the benefits thereunder regardless of any provision or statement

contained in the application or certificate, and full payment may not be refused under any

certificate when the member's death occurs from an acute, subacute, or chronic disease more

than one year after the date of issue of the certificate. If a member commits suicide within one

year from the date of issue of the certificate, the liability of the society is limited to an amount

equal to all membership fees and assessments paid by the member.
N.D. Cent. Code § 26.1-26-52 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-52
26.1-26-52. Insurance license for automobile rental agencies - Exception
Status: in_force

26.1-26-52. Insurance license for automobile rental agencies - Exception

A license as an insurance producer is not required for the counter sales personnel of an

automobile rental company or its franchisee if:

1. The automobile rental company is appropriately licensed in this state under

subsection 4 of section 26.1-26-13.3 or is affiliated with an appropriately licensed

North Dakota insurance producer.

2. The coverage offered by the counter sales personnel is limited to the following:

a. Personal accident insurance covering the risks of travel, including accident and

health insurance that provides coverage to renters and other rental vehicle

occupants for accidental death or dismemberment and for medical expenses

resulting from an accident that occurs during the rental period;

b. Supplemental liability insurance that must include uninsured and underinsured

motorist coverage, either offered separately or in combination with other liability

insurance, and that provides coverage to renters and other authorized drivers for

liability arising from the operation of the rental vehicle;

c. Personal effects insurance that provides coverage to renters and other vehicle

occupants for the loss of, or damage to, personal effects that occurs during the

rental period;

d. Roadside assistance and emergency sickness protection programs; and

e. Any other coverage that a rental company offers in connection with and incidental

to the rental of vehicles.

3. The rental period is ninety days or less.

4. The automobile rental company files an acknowledgement with the commissioner that

its counter sales personnel act on its behalf and that it is responsible for any

representations made by the counter sales personnel relating to insurance products

offered through the automobile rental company or its franchisee. The

acknowledgement must state that the commissioner has the right to take any

administrative action contemplated in this title, including revocation or suspension of

the license required under subsection 1.

5. The automobile rental company provides basic training to counter sales personnel in

the insurance products offered under this section. The training must require counter

sales personnel to refer all customers with questions regarding the insurance products

offered under this section to appropriately licensed insurance producers employed by

the automobile rental company or to written brochures or other materials that:

a. Summarize the material terms of the coverage, including the identity of the

insurer;

b. Disclose that the policies offered by the automobile rental company may duplicate

coverage already provided by other insurance the renter may have;

c. State that the purchase of insurance is not required to rent the vehicle; and

d. Describe the process of filing a claim.

6. The counter sales personnel are not directly paid by an insurance company, a

commission, or any other compensation for the sale of insurance. Nothing in this

section prevents the automobile rental company from including the insurance products

in an overall employee performance compensation incentive program.
N.D. Cent. Code § 26.1-26-42.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-42.1
26.1-26-42.1. Revocation of nonresident license
Status: in_force

26.1-26-42.1. Revocation of nonresident license

Notwithstanding the provisions of subsection 13 of section 26.1-26-42, any nonresident

license issued pursuant to this chapter may be suspended or revoked without notice and

hearing to the licensee and without proceeding in conformity with chapter 28-32, upon evidence

the resident license of the North Dakota nonresident licensee has been revoked or suspended

or sixty days after the commissioner receives notification that the producer's license is past the

renewal deadline in the producer's resident home state. This evidence may be in the form of a

certified copy or by electronic mail, or through the insurance producer database maintained by

the national association of insurance producers, its affiliates, or subsidiaries.
N.D. Cent. Code § 26.1-05-26 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-26
26.1-05-26. Dividends on securities property of company
Status: in_force

26.1-05-26. Dividends on securities property of company

A domestic life insurance company having bonds or other securities on deposit with the

commissioner may collect the dividends or interest thereon upon delivering to its authorized

agent the coupons or other evidence of interest as the same becomes due. If any company,

however, fails to deposit additional securities when and as called for by the commissioner, or

pending any proceedings to close up or enjoin the operations of the company, the commissioner

shall collect the dividends or interest and add the same to the securities on deposit.
N.D. Cent. Code § 26.1-21-24 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-24
26.1-21-24. State agency or political subdivision may purchase bond in addition to fund bond
Status: repealed

26.1-21-24. State agency or political subdivision may purchase bond in addition to

fund bond.

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-32-01 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-01
26.1-32-01. Liability of insurer for loss - Proximate and remote cause
Status: in_force

26.1-32-01. Liability of insurer for loss - Proximate and remote cause

An insurer is liable for a loss proximately caused by a peril insured against even though a

peril not contemplated by the insurance contract may have been a remote cause of the loss. An

insurer is not liable for a loss of which the peril insured against was only a remote cause. The

efficient proximate cause doctrine applies only if separate, distinct, and totally unrelated causes

contribute to the loss.
N.D. Cent. Code § 26.1-18.1-21 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-21
26.1-18.1-21. Summary orders and supervision
Status: in_force

26.1-18.1-21. Summary orders and supervision

1. Whenever the commissioner determines that the financial condition of any health

maintenance organization is such that its continued operation might be hazardous to

its enrollees, creditors, or the general public, or that it has violated any provision of this

chapter, the commissioner may, after notice and hearing, order the health maintenance

organization to take action as may be reasonably necessary to rectify the condition or

violation, including one or more of the following:

a. Reduce the total amount of present and potential liability for benefits by

reinsurance or other method acceptable to the commissioner.

b. Reduce the volume of new business being accepted.

c. Reduce expenses by specified methods.

d. Suspend or limit the writing of new business for a period of time.

e. Increase the health maintenance organization's capital and surplus by

contribution.

f. Take other steps as the commissioner may deem appropriate under the

circumstances.

2. For purposes of this section, the violation by a health maintenance organization of any

law of this state to which the health maintenance organization is subject must be

deemed a violation of this chapter.

3. The commissioner may set uniform standards and criteria by rule for early warning that

the continued operation of any health maintenance organization might be hazardous to

its enrollees, creditors, or the general public and to set standards for evaluating the

financial condition of any health maintenance organization, which standards must be

consistent with the purposes expressed in subsection 1.

4. The remedies and measures available to the commissioner under this section are in

addition to, and not in lieu of, the remedies and measures available to the

commissioner under the provisions of section 26.1-06.1-09.
N.D. Cent. Code § 26.1-36.7-05 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-05
26.1-36.7-05. Powers and duties of commissioner and board
Status: in_force

26.1-36.7-05. Powers and duties of commissioner and board

1. The commissioner shall:

a. Perform all functions necessary for the association to carry out the purposes of

this chapter; and

b. Approve any assessments to the insurers writing or otherwise issuing group

health benefit plans. A group health benefit plan issued pursuant to chapter

54-52.1 is exempt from the assessment.

2. The board shall:

a. Formulate general policies to advance the purposes of this chapter;

b. Request an audit be performed by an independent auditor or the state auditor

unless an audit has been performed during the waiver period pursuant to the

innovation wavier under section 1332 of the federal Patient Protection and

Affordable Care Act [Pub. L. 111-148; 119 Stat. 124; 42 U.S.C. 1801 et seq.];

c. Approve bylaws and operating rules; and

d. Provide for other matters as may be necessary and proper for the execution of

the commissioner's and board's powers, duties, and obligations.

3. The commissioner and the members of the board are not liable for any obligations of

the association.
N.D. Cent. Code § 26.1-03-19.6 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.6
26.1-03-19.6. Cost of examinations
Status: in_force

26.1-03-19.6. Cost of examinations

For purposes of any examination authorized or required by law, the company being

examined shall pay the same charge for the examination as is provided in section 26.1-01-07

for an official examination. The compensation to be paid to the employees of the commissioner

is to be paid out of the appropriation for the commissioner's office. Any sum paid to the

employees or to the commissioner by the company examined, as an examination fee or

otherwise, is state money, and forthwith must be paid into the insurance regulatory trust fund.

Any sum paid to the employee or the commissioner as expense money for the examiner may be

paid directly to the employee, and no employee may charge or collect from the state any

expenses incurred in connection with any examination for or during which expenses or any part

thereof have been paid by any other person, firm, or corporation. However, the compensation

and expenses paid for independent contract examiners must be paid directly by the company

examined after approval by the commissioner.
N.D. Cent. Code § 26.1-36-42 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-42
26.1-36-42. Grievance procedures
Status: in_force

26.1-36-42. Grievance procedures

1. An accident and health insurance policy may not be delivered or issued for delivery by

an insurance company, as defined in section 26.1-02-01, or any other entity providing

a plan of health insurance subject to state insurance regulation to a person in this state

unless the entity establishes and maintains a grievance procedure for resolving

complaints by covered persons and providers and addressing questions and concerns

regarding any aspect of the plan, including access to and availability of services,

quality of care, choice and accessibility of providers, and network adequacy. The

procedure must include a system to record and document all grievances since the

date of its last examination of the grievances.

2. The procedure must be approved by the insurance commissioner. The commissioner

may examine the grievance procedures.
N.D. Cent. Code § 26.1-33.4-14 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-14
26.1-33.4-14. Injunctions - Civil remedies - Cease and desist
Status: in_force

26.1-33.4-14. Injunctions - Civil remedies - Cease and desist

1. In addition to the penalties and other enforcement provisions of this chapter, if any

person violates this chapter or any rule implementing this chapter, the commissioner

may seek an injunction in a court of competent jurisdiction in the county where the

person resides or has a principal place of business and may apply for temporary and

permanent orders that the commissioner determines necessary to restrain the person

from further committing the violation.

2. Any person damaged by the acts of another person in violation of this chapter or any

rule or regulation implementing this chapter may bring a civil action for damages

against the person committing the violation in a court of competent jurisdiction.

3. The commissioner may issue a cease and desist order upon a person that violates any

provision of this part, any rule or order adopted by the commissioner, or any written

agreement entered into with the commissioner in accordance with chapter 28-32.

4. When the commissioner finds that such an action presents an immediate danger to the

public and requires an immediate final order, the commissioner may issue an

emergency cease and desist order reciting with particularity the facts underlying such

findings. The emergency cease and desist order is effective immediately upon service

of a copy of the order on the respondent and remains effective for ninety days. If the

commissioner begins nonemergency cease and desist proceedings under

subsection 1, the emergency cease and desist order remains effective, absent an

order by an appellate court of competent jurisdiction pursuant to chapter 28-32. In the

event of a willful violation of this chapter, the trial court may award statutory damages

in addition to actual damages in an additional amount up to three times the actual

damage award. The provisions of this chapter may not be waived by agreement. A

choice of law provision may not be utilized to prevent the application of this chapter to

any settlement in which a party to the settlement is a resident of this state.
N.D. Cent. Code § 26.1-08-04 — ND Code / Title 26.1 / Chapter 26.1-08 / Section 26.1-08-04
26.1-08-04. Association plan
Status: repealed

26.1-08-04. Association plan

Repealed by S.L. 2003, ch. 239, § 18.
N.D. Cent. Code § 26.1-12-31 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-31
26.1-12-31. Taxable premiums of mutual insurance company
Status: in_force

26.1-12-31. Taxable premiums of mutual insurance company

For the purposes of taxation under the laws of this state, the taxable premiums or premium

receipts of a mutual insurance company organized or admitted to do business in this state are

the gross premiums received for direct insurance upon property or risks in this state less:

1. Any amount paid for reinsurance upon which a tax has been, or is to be, paid to this

state.

2. Premiums upon policies not accepted.

3. Premiums returned on canceled policies.

4. Any refund or return made to the policyholder other than for losses.
N.D. Cent. Code § 26.1-36.12-06 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-06
26.1-36.12-06. Prior authorization - Urgent health care services
Status: in_force

26.1-36.12-06. Prior authorization - Urgent health care services

A prior authorization review organization shall render a prior authorization or adverse

determination concerning urgent health care services and notify the enrollee and the enrollee's

health care provider of that prior authorization or adverse determination within seventy-two

hours after receiving all information needed to complete the review of the requested health care

services.
N.D. Cent. Code § 26.1-33-10 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-10
26.1-33-10. Agreement depriving insured in life policy of right to apportionment of surplus and automatic insurance void
Status: in_force

26.1-33-10. Agreement depriving insured in life policy of right to apportionment of

surplus and automatic insurance void.

No agreement between a life insurance company and a holder of a participating policy or an

applicant for insurance under a participating policy relating to the apportionment annually of the

surplus of the company, the rights of the policyholder in the surplus, automatic insurance, or to

the limitation on contingency reserves waives any of the provisions of this chapter relating

thereto.
N.D. Cent. Code § 26.1-29-10 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-10
26.1-29-10. Contingent or expectant interest not insurable
Status: in_force

26.1-29-10. Contingent or expectant interest not insurable

A mere contingent or expectant interest in anything, not founded on an actual right to the

thing nor upon any valid contract for it, is not insurable.
N.D. Cent. Code § 26.1-43-01 — ND Code / Title 26.1 / Chapter 26.1-43 / Section 26.1-43-01
26.1-43-01. Legal expense insurance defined
Status: in_force

26.1-43-01. Legal expense insurance defined

"Legal expense insurance", as authorized in this title, means insurance which involves the

assumption of a contractual obligation to reimburse the beneficiary against or on behalf of the

beneficiary, all or a portion of the beneficiary's fees, costs, or expenses related to or arising out

of services by or under the supervision of an attorney licensed to practice law in this state,

regardless of whether the payment is made by the beneficiaries individually or by a third party

for them.
N.D. Cent. Code § 26.1-17-32 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-32
26.1-17-32. Investigation and examination
Status: in_force

26.1-17-32. Investigation and examination

The commissioner, or any deputy or examiner designated by the commissioner, has the

right, at all reasonable times, to free access to all books and records of a health service

corporation, and may summon and examine, under oath, the officers and employees of the

corporation in all matters pertaining to its financial condition. The corporation must bear the

expense of any examination of its books and financial condition.
N.D. Cent. Code § 26.1-35-06 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-06
26.1-35-06. Reserve valuation - Annuity and pure endowment benefits method
Status: in_force

26.1-35-06. Reserve valuation - Annuity and pure endowment benefits method

1. This section applies to all annuity and pure endowment contracts other than group

annuity and pure endowment contracts purchased under a retirement plan or plan of

deferred compensation, established or maintained by an employer, including a

partnership or sole proprietorship, or by an employee organization, or by both, other

than a plan providing individual retirement accounts or individual retirement annuities

under section 408 of the federal Internal Revenue Code of 1954, as amended.

2. Reserves according to the commissioner annuity reserve method for benefits under

annuity or pure endowment contracts, excluding any disability and accidental death

benefits in the contracts, must be the greatest of the respective excesses of the

present values, at the date of valuation, of the future guaranteed benefits, including

guaranteed nonforfeiture benefits, provided for by the contracts at the end of each

respective contract year, over the present value, at the date of valuation, of any future

valuation considerations derived from future gross considerations, required by the

terms of the contracts, that become payable prior to the end of the respective contract

year. The future guaranteed benefits must be determined by using the mortality tables,

if any, and the interest rate, or rates, specified in the contracts for determining

guaranteed benefits. The valuation considerations are the portions of the respective

gross considerations applied under the terms of the contracts to determine

nonforfeiture values.
N.D. Cent. Code § 26.1-21-20 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-20
26.1-21-20. Notice of cancellation - Right to appeal from cancellation - Procedure
Status: repealed

26.1-21-20. Notice of cancellation - Right to appeal from cancellation - Procedure

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-36-09.14 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.14
26.1-36-09.14. Coverage of cancer treatment medications
Status: in_force

26.1-36-09.14. Coverage of cancer treatment medications

1. As used in this section:

a. "Cancer treatment medications" means prescription drugs and biologics that are

used to kill, slow, or prevent the growth of cancerous cells.

b. "Insurer" means an insurance company, nonprofit health service corporation, or

health maintenance organization.

c. "Patient-administered" includes oral administration and self-injection.

d. "Policy" means an accident and health insurance policy, contract, or evidence of

coverage on a group, individual, blanket, franchise, or association basis.

2. An insurer may not deliver, issue, execute, or renew a policy that provides coverage

for cancer treatment medications that are injected or are intravenously administered by

a health care provider and that provides coverage for patient-administered cancer

treatment medications unless the policy copayment, deductible, and coinsurance

amounts for patient-administered cancer treatment medications do not exceed the

amounts for cancer treatment medications that are injected or are intravenously

administered by a health care provider, regardless of the formulation or benefit

category.

3. An insurer may not increase a copayment, deductible, or coinsurance amount for

covered cancer treatment medications that are injected or intravenously administered

in order to avoid compliance with subsection 2. An insurer may not reclassify benefits

with respect to cancer treatment medications in a manner that is inconsistent with this

section.
N.D. Cent. Code § 26.1-36-12.6 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.6
26.1-36-12.6. Ambulance services classifications
Status: in_force

26.1-36-12.6. Ambulance services classifications

For purposes of classifying ambulance services for an accident and health insurance policy,

the classifications established under section 50-24.1-16 apply.
N.D. Cent. Code § 26.1-26-19 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-19
26.1-26-19. Determination of residency for license issuance - Election of residency - When void
Status: in_force

26.1-26-19. Determination of residency for license issuance - Election of residency -

When void.

An applicant may qualify as a resident if the applicant resides in this state or maintains the

applicant's principal place of business in this state. A license issued pursuant to an application

claiming residency for licensing purposes constitutes an election of residency in this state. A

license is void if the licensee, while holding a resident license in this state, also holds or applies

for a resident license from, or thereafter claims to be a resident of, any other state or other

jurisdiction or ceases to be a resident of this state.
N.D. Cent. Code § 26.1-16-05 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-05
26.1-16-05. Articles of incorporation - Contents
Status: in_force

26.1-16-05. Articles of incorporation - Contents

Persons proposing to form a benevolent society under this chapter shall subscribe and

acknowledge articles of incorporation specifying:

1. The name of the society, which must include the words "benevolent society".

2. The purpose for which the society is to be formed.

3. A full and clear definition of the plan under which the society proposes to do business.

4. The time and place of holding meetings of the members of the society.

5. The location of the society's principal office, which must be within this state.

6. The date for the commencement and for the termination of the fiscal year of the

society.

7. The term for which the society is to be incorporated, which term may not exceed thirty

years.

8. The number of directors, not less than five nor more than nine, all of whom must be

residents of this state.

9. The names and addresses of the directors selected to serve until the first meeting of

the members of the society.
N.D. Cent. Code § 26.1-26-07 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-07
26.1-26-07. Insurance producer - Agent of insured
Status: in_force

26.1-26-07. Insurance producer - Agent of insured

An insurance producer or surplus lines insurance producer, who is not an appointed

insurance producer of the insurer with which an insurance policy is placed and who acts or aids

in any manner in negotiating insurance contracts or placing risks of effecting insurance for a

party other than oneself or itself, is regarded as representing the insured or the insured's

beneficiary and not the insurer.
N.D. Cent. Code § 26.1-25.1-02 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-02
26.1-25.1-02. Definitions
Status: in_force

26.1-25.1-02. Definitions

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

1. "Adverse action" means a denial or cancellation of, an increase in any charge for, or a

reduction or other adverse or unfavorable change in the terms of coverage or amount

of, any insurance, existing or applied for, in connection with the underwriting of

personal insurance.

2. "Affiliate" means any company that controls, is controlled by, or is under common

control with another company.

3. "Applicant" means an individual who has applied to be covered by a personal

insurance policy with an insurer.

4. "Consumer" means an insured whose credit information is used or whose insurance

score is calculated in the underwriting or rating of a personal insurance policy or an

applicant for such a policy.

5. "Consumer reporting agency" means any person that for monetary fees, dues, or on a

cooperative nonprofit basis, regularly engages in whole or in part in the practice of

assembling or evaluating consumer credit information or other information on

consumers for the purpose of furnishing consumer reports to third parties.

6. "Credit information" means any credit-related information derived from a credit report,

found on a credit report itself, or provided on an application for personal insurance.

The term does not include information that is not credit-related, regardless of whether

the information is contained in a credit report or in an application or is used to calculate

an insurance score.

7. "Credit report" means any written, oral, or other communication of information by a

consumer reporting agency bearing on a consumer's creditworthiness, credit standing,

or credit capacity which is used or expected to be used or collected in whole or in part

for the purpose of serving as a factor to determine personal insurance premiums,

eligibility for coverage, or tier placement.

8. "Insurance score" means a number or rating that is derived from an algorithm, a

computer application, a model, or other process that is based in whole or in part on

credit information for the purposes of predicting the future insurance loss exposure of

an individual applicant or insured.

9. "Personal insurance" means private passenger automobile, homeowners, motorcycle,

mobile homeowners, and noncommercial dwelling fire insurance policies. Such

policies must be individually underwritten for personal, family, or household use. No

other type of insurance is included as personal insurance for the purpose of this

chapter.
N.D. Cent. Code § 26.1-36.7-06 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-06
26.1-36.7-06. Assessments against insurers
Status: in_force

26.1-36.7-06. Assessments against insurers

1. For the purpose of providing the funds necessary to carry out the purposes of the

association under this chapter, the commissioner shall assess insurers writing or

otherwise issuing group health benefit plans based on the insurer's group health

benefit plan premium written in this state. The assessment must be paid quarterly

within forty-five days of the end of the previous quarter on all earned group health

benefit plan premiums for the previous calendar quarter. An assessment not paid

within forty-five days of the end of the previous quarter accrues interest at twelve

percent per annum beginning on the date due.

2. An insurer writing less than one hundred thousand dollars, annually, in group health

benefit plan premium is exempt from the assessments.

3. The commissioner may verify the amount of each insurer's assessment based on

annual statements and other reports determined to be necessary by the commissioner.

The commissioner may use any reasonable method of estimating an insurer's group

health benefit plan premium if the specific number is not reported to the commissioner.

4. Any federal funding obtained by the association must be used to reduce the

assessments of insurers writing or otherwise issuing group health benefit plans

pursuant to this section.

5. Before April second of each year, the association shall determine and report to the

board the association's net gains or net losses for the previous calendar year.

6. Before April sixteenth of each year, the association shall provide an estimate to the

commissioner and the board of the amount of assessments needed for the association

to carry out the powers and duties of the association under this chapter.

7. Before May second of each year, the board may provide a recommendation to the

commissioner and the board of the amount of assessments needed for the association

to carry out the powers and duties of the association under this chapter.

8. An insurer may apply to the commissioner for a deferral of all or part of an assessment

imposed by the association under this section. The commissioner may defer all or part

of the assessment if the commissioner determines the payment of the assessment

would place the insurer in a financially impaired condition. If all or part of the

assessment is deferred, the amount deferred must be assessed against other insurers

in a proportionate manner consistent with this section. The insurer that receives a

deferral remains liable to the association for the amount deferred and is prohibited

from reinsuring any person through the association until such time as the insurer pays

the assessments.

9. The board shall use any surplus, including any interest earned on the surplus, to:

a. Offset future losses;

b. Reduce future assessments to insurers writing or otherwise issuing group health

benefit plans; or

c. Pay off a line of credit issued pursuant to section 26.1-36.7-07.

10. The commissioner may suspend or revoke, after notice and hearing, the certificate of

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

assessment. As an alternative, the commissioner may levy a penalty on any member

insurer that fails to pay an assessment when due. In addition, the commissioner may

use any power granted to the commissioner by this title to collect any unpaid

assessment.
N.D. Cent. Code § 26.1-17-07 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-07
26.1-17-07. Authority of corporation writing certain health service contracts
Status: in_force

26.1-17-07. Authority of corporation writing certain health service contracts

A health service corporation writing health service contracts other than hospital service,

medical service, and optometric service contracts may:

1. Enter into contracts with subscribers whereby each subscriber, subscriber member,

officer, or employee is entitled to certain specified health services as provided in the

subscriber's contract.

2. Enter into contracts with similar corporations within or without the state for the

interchange of services to those included in subscription or other similar contracts, and

may provide subscription contracts for the substitution of such services in lieu of those

therein recited.

3. Enter into contracts with health service providers for the rendering of health services to

subscribers in accordance with the terms of the subscriber contract.

4. Enter into contracts with laboratories and vendors of health appliances and prostheses

to provide material and services pursuant to contracts with subscribers.
N.D. Cent. Code § 26.1-02.2-09 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-09
26.1-02.2-09. Penalties
Status: in_force

26.1-02.2-09. Penalties

In the case of a violation of this chapter, a licensee may be penalized in accordance with

section 26.1-01-03.3.
N.D. Cent. Code § 26.1-29-31 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-31
26.1-29-31. Modification of insurance contract - Exercise of right of rescission
Status: in_force

26.1-29-31. Modification of insurance contract - Exercise of right of rescission

This chapter applies to a modification of an insurance contract as well as to its original

formation. The right to rescind an insurance contract given to the insurer under the provisions of

this title may be exercised at any time prior to the commencement of an action on the contract.
N.D. Cent. Code § 26.1-02-03 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-03
26.1-02-03. Inquiry into condition of company - Information supplied to commissioner - Penalty
Status: in_force

26.1-02-03. Inquiry into condition of company - Information supplied to commissioner

- Penalty.

The commissioner may address to any insurance company doing or applying for permission

to do business in this state any inquiries in relation to the company's activities, condition, or any

other matter connected with the company's transactions. The company shall reply in writing to

such an inquiry within twenty days of receipt of the inquiry unless within that twenty days the

company requests and the commissioner grants an extension of time. It is a violation of this title

for a person to knowingly supply the commissioner with false, misleading, or incomplete

information.
N.D. Cent. Code § 26.1-26-11.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-11.1
26.1-26-11.1. Authority to define procedures and requirements
Status: in_force

26.1-26-11.1. Authority to define procedures and requirements

The commissioner may adopt rules to implement licensing procedures and requirements

specific to each line of insurance and each product type within each line of insurance.
N.D. Cent. Code § 26.1-26.4-04.1 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-04.1
26.1-26.4-04.1. Utilization review in this state - Conditions of employment
Status: in_force

26.1-26.4-04.1. Utilization review in this state - Conditions of employment

A utilization review agent is deemed to be conducting utilization review in this state if the

agent conducts utilization review involving services rendered or to be rendered in the state

regardless of where the agent actually performs the utilization review. No person may be

employed or compensated as a private review agent under any agreement or contract when

compensation of the review agent is contingent upon a denial or reduction in the payment for

hospital, medical, or other health care services.
N.D. Cent. Code § 26.1-26.8-13 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-13
26.1-26.8-13. Contract between public adjuster and insured
Status: in_force

26.1-26.8-13. Contract between public adjuster and insured

1. A contract for a public adjuster's services must be in writing and contain the following

terms:

a. Legible full name of the public adjuster signing the contract, as specified in

commissioner records;

b. Home state, business address, and telephone number;

c. Public adjuster license number;

d. Title of "Public Adjuster Contract";

e. Insured's full name and street address, insurer name, and insurance policy

number, if known or upon notification;

f. Description of the loss and the location of the loss, if applicable;

g. Description of services to be provided to the insured;

h. Signatures of the public adjuster and the insured;

i. The date the contract was signed by the public adjuster and the date the contract

was signed by the insured;

j. Attestation language stating the public adjuster is fully bonded pursuant to state

law; and

k. The specific amount of compensation, including the full salary, fee, commission,

or other consideration the public adjuster is to receive for services.

2. The contract may specify the public adjuster must be named as a copayee on an

insurer's payment of a claim.

3. If the compensation is based on a share of the insurance settlement, the exact

percentage must be specified in the contract.

4. Initial expenses to be reimbursed to the public adjuster from the proceeds of the claim

payment must be specified by type and the dollar estimates must be set forth in the

contract. Additional expenses must be approved in writing by the insured.

5. Compensation provisions in a public adjuster contract may not be redacted in a copy

of the contract provided to the commissioner.

6. If the insurer, not later than three days after the date on which the loss is reported to

the insurer, either pays or commits in writing to pay to the insured the policy limit of the

insurance policy, the public adjuster:

a. May not receive a commission consisting of a percentage of the total amount paid

by an insurer to resolve a claim;

b. Shall inform the insured the loss recovery amount might not be increased by the

insurer; and

c. Is entitled only to reasonable compensation from the insured for services

provided by the public adjuster on behalf of the insured, based on the time spent

on a claim and expenses incurred by the public adjuster, until the claim is paid or

the insured receives a written commitment to pay from the insurer.

7. A public adjuster contract may not contain a contract term that:

a. Allows for balance billing of the insured;

b. Allows a percentage fee to be collected by the public adjuster if money is due

from an insurer, but not paid, or allows a public adjuster to collect the entire fee

from the first check issued by an insurer, rather than a percentage of each check

issued by an insurer;

c. Requires the insured to authorize an insurer to issue a check only in the name of

the public adjuster;

d. Imposes collection costs or late fees; or

e. Precludes a public adjuster from pursuing civil remedies.

8. Before the signing of the contract the public adjuster shall provide the insured with a

separate disclosure document regarding the claim process which states:

a. Property insurance policies obligate the insured to present a claim to the insurer

for consideration.

b. The following three types of adjusters could be involved in the claim process:

(1) "Company adjuster" means an insurance adjuster who is an employee of an

insurer. A company adjuster represents the interest of the insurer, is paid by

the insurer, and will not charge the insured a fee.

(2) "Independent adjuster" means an insurance adjuster who is hired on a

contract basis by an insurer to represent the interest of the insurer in the

settlement of the claim. An independent adjuster is paid by the insurer and

will not charge the insured a fee.

(3) "Public adjuster" means an insurance adjuster who does not work for an

insurer. A public adjuster works for the insured to assist in the preparation,

presentation, and settlement of the claim. The insured hires a public adjuster

by signing a contract agreeing to pay a fee or commission based on a

percentage of the settlement or other method of compensation.

c. The insured is not required to hire a public adjuster to help the insured meet the

insured's obligations under the policy, but has the right to do so.

d. The insured has the right to initiate direct communications with the insured's

attorney, the insurer, the company adjuster, and the insurer's attorney, or any

person regarding the settlement of the insured's claim.

e. The public adjuster is not a representative or employee of the insurer.

f. The salary, fee, commission, or other consideration to be paid to a public adjuster

is the obligation of the insured, not the insurer.

9. The contract must be executed in duplicate to provide an original contract to the public

adjuster and to the insured. The original contract retained by the public adjuster must

be available at all times for inspection without notice by the department.

10. The public adjuster shall provide the insurer a notification letter signed by the insured,

authorizing the public adjuster to represent the insured's interest. The notification letter

must include a copy of the signed contract.

11. The public adjuster shall give the insured written notice of the insured's rights as

provided in this section.

12. Within three days after the claim is submitted to the insurer, the insured has the right to

rescind the contract. The rescission must be in writing and mailed or delivered to the

public adjuster at the address in the contract within the three business-day period.

13. If the insured exercises the right to rescind the contract, anything of value given by the

insured under the contract must be returned to the insured within fifteen days following

the receipt by the public adjuster of the rescission notice.

14. The commissioner may require a public adjuster to file a contract with the department

in a manner prescribed by the commissioner.
N.D. Cent. Code § 26.1-03.2-11 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-11
26.1-03.2-11. Immunity
Status: in_force

26.1-03.2-11. Immunity

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

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

them in the performance of their powers and duties under this chapter.
N.D. Cent. Code § 26.1-39-04 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-04
26.1-39-04. Measure of indemnity on fire policy
Status: in_force

26.1-39-04. Measure of indemnity on fire policy

If there is no valuation in the policy, the measure of indemnity in an insurance against fire is

the full amount stated in the policy. If there is a valuation in the policy, the valuation is conclusive

between the parties in the adjustment either of a partial or a total loss if the insured has some

interest at risk and there is no fraud on the insured's part. In the event of a partial loss, the

insurer is liable only for the proportion of the amount insured as the loss bears to the value of

the whole interest of the insured in the property insured. A valuation fraudulent in fact, however,

entitles the insurer to rescind the contract. The provisions of this section may not be construed

as a revocation of any of the rights of insurers delineated in section 26.1-39-05.
N.D. Cent. Code § 26.1-25-10.3 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10.3
26.1-25-10.3. Advisory organizations - Permitted activity
Status: in_force

26.1-25-10.3. Advisory organizations - Permitted activity

Any advisory organization in addition to other activities not prohibited, is authorized, on

behalf of its members and subscribers, to:

1. Develop statistical plans, including territorial and class definitions.

2. Collect statistical data from members, subscribers, or any other sources.

3. Prepare and distribute prospective loss costs.

4. Prepare and distribute factors, calculations, or formulas pertaining to classification,

territory, increased limits, and other variables.

5. Prepare and distribute manuals of rating rules and rating schedules that do not include

final rates, expense provisions, profit provisions, or minimum premiums.

6. Distribute information that is required or directed to be filed with the commissioner.

7. Conduct research and onsite inspections in order to prepare classifications of public

fire defenses.

8. Consult with public officials regarding public fire protection as it would affect members,

subscribers, and others.

9. Conduct research and collect statistics in order to discover, identify, and classify

information relating to causes or prevention of losses.

10. Prepare policy forms and endorsements and consult with members, subscribers, and

others relative to their use and application.

11. Conduct research and onsite inspections for the purpose of providing risk information

relating to individual structures.

12. Collect, compile, and distribute past and current prices of individual insurers and

publish such information.

13. File final rates, at the direction of the commissioner, for residual market mechanisms.

14. Furnish any other services, as approved or directed by the commissioner, related to

those enumerated in this section.
N.D. Cent. Code § 26.1-04-07 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-07
26.1-04-07. Misrepresentation of terms of policy and future dividends prohibited
Status: in_force

26.1-04-07. Misrepresentation of terms of policy and future dividends prohibited

An insurance or surety company, reciprocal, benevolent society, or any other insurance

organization or association, however constituted or entitled, doing business in this state, and an

officer, director, agent, or solicitor of the company, society, or organization, and an insurance

producer, may not issue, circulate, or use, or cause or permit to be issued, circulated, or used,

any written or oral statement or circular misrepresenting the terms of any policy issued or to be

issued by the company, society, or organization, or the benefits or advantages, promised

thereby, or make an estimate, with intent to deceive, of the future dividends or shares of surplus

payable under the policy, or use any name or title of any policy or class of policies

misrepresenting the true nature thereof.
N.D. Cent. Code § 26.1-53.1-06 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-06
26.1-53.1-06. Surety bonds not subject to levy by claimants
Status: in_force

26.1-53.1-06. Surety bonds not subject to levy by claimants

Except for the commissioner, the assets or securities held in this state as a deposit pursuant

to section 26.1-53.1-05 are not subject to levy by a judgment creditor or other claimant of the

discount plan organization.
N.D. Cent. Code § 26.1-02.2-07 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-07
26.1-02.2-07. Confidentiality
Status: in_force

26.1-02.2-07. Confidentiality

1. Any documents, materials, or other information in the control or possession of the

department which are furnished by a licensee, or an employee or agent thereof acting

on behalf of a licensee pursuant to this chapter, or that are obtained by the

commissioner in an investigation or examination pursuant to section 26.1-02.2-06 are

confidential, not subject to chapter 44-04, not subject to subpoena, and are 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 a part of the commissioner's duties.

2. The commissioner or any person that received documents, materials, or other

information while acting under the authority of the commissioner may not be permitted

or required to testify in any private civil action concerning any confidential documents,

materials, or information subject to subsection 1.

3. In order to assist in the performance of the commissioner's duties under this chapter,

the commissioner:

a. May share documents, materials, or other information, including the confidential

and privileged documents, materials, or information subject to subsection 1, with

other state, federal, and international regulatory agencies, with the national

association of insurance commissioners, its affiliates or subsidiaries, and with

state, federal, and international law enforcement authorities, provided the

recipient agrees in writing to maintain the confidentiality and privileged status of

the document, material, or other information;

b. May receive documents, materials, or information, including otherwise

confidential and privileged documents, materials, or information, from the national

association of insurance commissioners, its affiliates or subsidiaries, and from

regulatory and law enforcement officials of other foreign or domestic jurisdictions,

and shall maintain as confidential or privileged any document, material, or

information received with notice or the understanding that it is confidential or

privileged under the laws of the jurisdiction that is the source of the document,

material, or information;

c. May share documents, materials, or other information subject to this section, with

a third-party consultant or vendor provided the consultant agrees in writing to

maintain the confidentiality and privileged status of the document, material, or

other information; and

d. May enter agreements governing sharing and use of information consistent with

this subsection.

4. A waiver of any applicable privilege or claim of confidentiality in the documents,

materials, or information does not occur as a result of disclosure to the commissioner

under this section or as a result of sharing as authorized in subsection 3.

5. Documents, materials, or other information in the possession or control of the national

association of insurance commissioners or a third-party consultant or vendor pursuant

to this chapter are confidential, not subject to chapter 44-04, not subject to subpoena,

and not subject to discovery or admissible in evidence in any private civil action.
N.D. Cent. Code § 26.1-36.1-04 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-04
26.1-36.1-04. Medicare supplement policy loss ratio standards
Status: in_force

26.1-36.1-04. Medicare supplement policy loss ratio standards

Medicare supplement policies must return benefits to individual policyholders in the

aggregate of not less than sixty-five percent of premium received. The commissioner shall adopt

rules to establish minimum standards for Medicare supplement policy loss ratios on the basis of

incurred claims experience and earned premiums for the entire period for which rates are

computed to provide coverage and in accordance with accepted actuarial principles and

practices.
N.D. Cent. Code § 26.1-16-09 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-09
26.1-16-09. Bylaws required
Status: in_force

26.1-16-09. Bylaws required

Each benevolent society shall adopt bylaws which conform to its articles of incorporation or

to this chapter.
N.D. Cent. Code § 26.1-03-21 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-21
26.1-03-21. Powers of commissioner or person making an examination
Status: repealed

26.1-03-21. Powers of commissioner or person making an examination

Repealed by S.L. 1993, ch. 292, § 49.
N.D. Cent. Code § 26.1-02.1-02 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-02
26.1-02.1-02. Insurance fraud
Status: repealed

26.1-02.1-02. Insurance fraud

Repealed by S.L. 2003, ch. 235, § 11.
N.D. Cent. Code § 26.1-36-09.7 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.7
26.1-36-09.7. Foods and food products for inherited metabolic diseases
Status: in_force

26.1-36-09.7. Foods and food products for inherited metabolic diseases

1. As used in this section:

a. "Inherited metabolic disease" means maple syrup urine disease or

phenylketonuria.

b. "Low-protein modified food product" means a food product that is specially

formulated to have less than one gram of protein per serving and is intended to

be used under the direction of a physician for the dietary treatment of an inherited

metabolic disease. The term does not include a natural food that is naturally low

in protein.

c. "Medical food" means a food that is intended for the dietary treatment of a

disease or condition for which nutritional requirements are established by medical

evaluation and is formulated to be consumed or administered under the direction

of a physician.

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

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

health service contract, or evidence of coverage that provides prescription coverage

on an individual, group, blanket, franchise, or association basis, unless the policy or

contract provides, for any person covered under the policy or contract, coverage for

medical foods and low-protein modified food products determined by a physician to be

medically necessary for the therapeutic treatment of an inherited metabolic disease.

3. This section applies to any covered individual born after December 31, 1962. This

section does not require coverage in excess of three thousand dollars per year total for

low-protein modified food products or medical food for an individual with an inherited

metabolic disease of amino acid or organic acid.

4. This section does not require medical benefits coverage for low-protein modified food

products or medical food for an individual to the extent those benefits are available to

that individual under a department of health and human services program.
N.D. Cent. Code § 26.1-58-04 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-04
26.1-58-04. Sales practices
Status: in_force

26.1-58-04. Sales practices

1. A person offering travel insurance to residents of this state is subject to chapter

26.1-04, except as otherwise provided in this section. In the event of a conflict

between this chapter and other provisions of title 26.1 regarding the sale and

marketing of travel insurance and travel protection plans, the provisions of this chapter

control.

2. Offering or selling a travel insurance policy that could never result in payment of any

claims for any insured under the policy is an unfair trade practice under chapter

26.1-04.

3. a. All documents provided to consumers before the purchase of travel insurance,

including sales materials, advertising materials, and marketing materials, must be

consistent with the travel insurance policy itself, including forms, endorsements,

policies, rate filings, and certificates of insurance.

b. For travel insurance policies or certificates that contain pre-existing condition

exclusions, information and an opportunity to learn more about the pre-existing

condition exclusions must be provided any time before the time of purchase, and

in the coverage's fulfillment materials.

c. The fulfillment materials and the information described in paragraph 1 of

subdivision b of subsection 3 of section 26.1-26-54 must be provided to a

policyholder or certificate holder as soon as practicable following the purchase of

a travel protection plan. Unless the insured has either started a covered trip or

filed a claim under the travel insurance coverage, a policyholder or certificate

holder may cancel a policy or certificate for a full refund of the travel protection

plan price from the date of purchase of a travel protection plan until at least fifteen

days following the date of delivery of the travel protection plan's fulfillment

materials by postal mail, or ten days following the date of delivery of the travel

protection plan's fulfillment materials by means other than postal mail. For

purposes of this section, "delivery" means handing fulfillment materials to the

policyholder or certificate holder or sending fulfillment materials by postal mail or

electronic means to the policyholder or certificate holder.

d. The company shall disclose in the policy documentation and fulfillment materials

whether the travel insurance is primary or secondary to other applicable

coverage.

e. Where travel insurance is marketed directly to a consumer through an insurer's

website or by others through an aggregator site, it is not an unfair trade practice

or other violation of law if an accurate summary or short description of coverage

is provided on the web page, so long as the consumer has access to the full

provisions of the policy through electronic means.

4. It is an unfair trade practice to market blanket travel insurance coverage as free.

5. Where a consumer's destination jurisdiction requires insurance coverage, it is not an

unfair trade practice to require that a consumer choose between the following options

as a condition of purchasing a trip or travel package:

a. Purchasing the coverage required by the destination jurisdiction through the

travel retailer or limited lines travel insurance producer supplying the trip or travel

package; or

b. Agreeing to obtain and provide proof of coverage that meets the destination

jurisdiction's requirements before departure.
N.D. Cent. Code § 26.1-06.1-53 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-53
26.1-06.1-53. Ancillary summary proceedings
Status: in_force

26.1-06.1-53. Ancillary summary proceedings

The commissioner has sole discretion to institute proceedings under sections 26.1-06.1-09

and 26.1-06.1-10 at the request of the commissioner or other appropriate insurance official of

the domiciliary state of any foreign or alien insurer having property located in this state.
N.D. Cent. Code § 26.1-40-18 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-18
26.1-40-18. Automobile warranties construed
Status: in_force

26.1-40-18. Automobile warranties construed

1. A person who issues a written automobile warranty contract, automobile mechanical

breakdown contract, or automobile service contract shall maintain a policy of

insurance which provides coverage for the person's contractual obligation.

2. The policy must be issued by an insurer licensed, registered, or otherwise authorized

to do business in this state. From the time the policy is filed with the commissioner:

a. The insurer shall maintain surplus as to policyholders and paid-in capital of at

least fifteen million dollars and annually file copies of the insurer's audited

financial statements, the national association of insurance commissioners annual

statement, and the actuarial certification required by and filed in the insurer's

state of domicile; or

b. The insurer shall maintain surplus as to policyholders and paid-in capital of

between fifteen million dollars and ten million dollars, demonstrate to the

satisfaction of the commissioner that the company maintains a ratio of net written

premiums, wherever written, to surplus as to policyholders and paid-in capital of

not greater than three to one, and annually file copies of the insurer's audited

financial statements, the national association of insurance commissioners annual

statement, and the actuarial certification required by and filed in the insurer's

state of domicile.

3. This section does not apply to an original equipment manufacturer.
N.D. Cent. Code § 26.1-02-20 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-20
26.1-02-20. Reinsurance permitted - Limitations
Status: in_force

26.1-02-20. Reinsurance permitted - Limitations

Except as otherwise provided by this section and section 26.1-02-22, any insurance

company organized or admitted to transact business in this state, including a mutual company,

may reinsure any part or all of any risk taken by it in any insurance company or insurer licensed

in any state or any insurance company or insurer not so licensed or any nonprofit health service

corporation whether or not licensed in this state provided it was approved or accepted by the

commissioner, if that company or insurer or nonprofit health service corporation conforms to the

same standards of solvency which would be required if, at the time the reinsurance is effected, it

was licensed in this state. A county mutual insurance company also may reinsure with any other

county mutual insurance company. No reinsurance, however, may be effected with any

company disapproved therefor by written order of the commissioner filed in the commissioner's

office. A domestic insurance company organized to engage in the business of life, accident, or

health insurance may not reinsure its risks or any part thereof without complying with chapter

26.1-07.
N.D. Cent. Code § 26.1-16-19 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-19
26.1-16-19. Expense fund and mortuary fund maintained as separate funds
Status: in_force

26.1-16-19. Expense fund and mortuary fund maintained as separate funds

A benevolent society shall maintain and keep two separate funds:

1. An expense fund.

2. A mortuary fund.
N.D. Cent. Code § 26.1-18.1-14 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-14
26.1-18.1-14. Enrollment period and replacement coverage in the event of insolvency
Status: in_force

26.1-18.1-14. Enrollment period and replacement coverage in the event of insolvency

1. Enrollment period.

a. In the event of an insolvency of a health maintenance organization, upon order of

the commissioner all other carriers that participated in the enrollment process

with the insolvent health maintenance organization at a group's last regular

enrollment period shall offer the group's enrollees of the insolvent health

maintenance organization a thirty-day enrollment period commencing upon the

date of insolvency. Each carrier shall offer the enrollees of the insolvent health

maintenance organization the same coverages and rates that it had offered to the

enrollees of the group at its last regular enrollment period.

b. If no other carrier had been offered to some groups enrolled in the insolvent

health maintenance organization, or if the commissioner determines that the

other health benefit plans lack sufficient health care delivery resources to assure

that health care services will be available and accessible to all of the group

enrollees of the insolvent health maintenance organization, then the

commissioner shall allocate equitably the insolvent health maintenance

organization's group contracts for the groups among all health maintenance

organizations which operate within a portion of the insolvent health maintenance

organization's service area, taking into consideration the health care delivery

resources of each health maintenance organization. Each health maintenance

organization to which a group or groups are so allocated shall offer the group or

groups the health maintenance organization's existing coverage which is most

similar to each group's coverage with the insolvent health maintenance

organization at rates determined in accordance with the successor health

maintenance organization's existing rating methodology.

c. The commissioner shall also allocate equitably the insolvent health maintenance

organization's nongroup enrollees which are unable to obtain other coverage

among all health maintenance organizations which operate within a portion of the

insolvent health maintenance organization's service area, taking into

consideration the health care delivery resources of each health maintenance

organization. Each health maintenance organization to which nongroup enrollees

are allocated shall offer nongroup enrollees the health maintenance

organization's existing coverage for individual or conversion coverage as

determined by the type of coverage in the insolvent health maintenance

organization at rates determined in accordance with the successor health

maintenance organization's existing rating methodology. Successor health

maintenance organizations which do not offer direct nongroup enrollment may

aggregate all of the allocated nongroup enrollees into one group for rating and

coverage purposes.

2. Replacement coverage.

a. "Discontinuance" means the termination of the contract between the group

contractholder and a health maintenance organization due to the insolvency of

the health maintenance organization, and does not refer to the termination of any

agreement between any individual enrollee and the health maintenance

organization.

b. Any carrier providing replacement coverage with respect to group hospital,

medical, or surgical expense or service benefits within a period of sixty days from

the date of discontinuance of a prior health maintenance organization contract or

policy providing hospital, medical, or surgical expense or service benefits shall

immediately cover all enrollees who were validly covered under the previous

health maintenance organization contract or policy at the date of discontinuance

and who would otherwise be eligible for coverage under the succeeding carrier's

contract, regardless of any provisions of the contract relating to active

employment or hospital confinement or pregnancy.

c. Except to the extent benefits for the condition would have been reduced or

excluded under the prior carrier's contract or policy, no provision in a succeeding

carrier's contract of replacement coverage which would operate to reduce or

exclude benefits on the basis that the condition giving rise to benefits pre-existed

the effective date of the succeeding carrier's contract may be applied with respect

to those enrollees validly covered under the prior carrier's contract or policy on

the date of discontinuance.
N.D. Cent. Code § 26.1-36.3-05 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-05
26.1-36.3-05. Renewability of coverage
Status: in_force

26.1-36.3-05. Renewability of coverage

1. A health benefit plan subject to this chapter and section 26.1-36-37.2 must be

renewable with respect to all eligible employees and dependents, at the option of the

small employer, except for any of the following:

a. The plan sponsor has failed to pay premiums or contributions in accordance with

the terms of the health benefit plan or the health carrier has not received timely

premium payments.

b. The plan sponsor or small employer has performed an act or practice that

constitutes fraud or made an intentional misrepresentation of a material fact

under the terms of the coverage.

c. Noncompliance with the carrier's minimum participation requirements.

d. Noncompliance with the carrier's employer contribution requirements.

e. A decision by the small employer carrier to discontinue offering a particular type

of group health benefit plan in the state's small employer market. A type of health

benefit plan may be discontinued by the carrier in that market only if the carrier:

(1) Provides advance notice of its decision under this paragraph to the

commissioner in each state in which it is licensed;

(2) Provides notice of the decision not to renew coverage to all affected small

employers, participants, and beneficiaries, and to the commissioner in each

state in which an affected insured individual is known to reside at least

ninety days prior to the nonrenewal of any health benefit plans by the

carrier. Notice to the commissioner under this subdivision must be provided

at least three working days prior to the notice to the affected small

employers and participants and beneficiaries;

(3) Offers to each plan sponsor provided the type of group health benefit plan

the option to purchase all other health benefit plans currently being offered

by the carrier to employers in the state; and

(4) In exercising the option to discontinue the particular type of group health

benefit plan and in offering the option of coverage under paragraph 3, the

carrier acts uniformly without regard to the claims experience of those

sponsors or any health status-related factor relating to any participants or

beneficiaries covered or new participants or beneficiaries who may become

eligible for such coverage.

f. A decision by the small employer carrier to discontinue offering and to nonrenew

all its health benefit plans delivered or issued for delivery to small employers in

this state. In such a case, the carrier shall:

(1) Provide advance notice of its decision under this paragraph to the

commissioner in each state in which it is licensed;

(2) Provide notice of the decision not to renew coverage to all affected small

employers, participants, and beneficiaries, and to the commissioner in each

state in which an affected insured individual is known to reside at least one

hundred eighty days prior to the nonrenewal of any health benefit plans by

the carrier. Notice to the commissioner under this subdivision shall be

provided at least three working days prior to the notice to the affected small

employers and participants and beneficiaries; and

(3) Discontinue all health insurance issued or delivered for issuance in the

state's small employer market and not renew coverage under any health

benefit plan issued to a small employer.

g. In the case of health benefit plans that are made available in the small employer

market only through one or more associations, the membership of an employer in

the association, on the basis of which the coverage is provided, ceases, but only

if the coverage is terminated under this subdivision uniformly without regard to

any health status-related factor relating to any covered individual.

h. The commissioner finds that the continuation of the coverage would not be in the

best interests of the policyholders or certificate holders or would impair the

carrier's ability to meet its contractual obligations. In this case the commissioner

shall assist affected small employers in finding replacement coverage.

2. A small employer carrier that elects not to renew a health benefit plan under

subdivision f of subsection 1 may not write new business in the small employer market

in this state for a period of five years from the date of notice to the commissioner.

3. In the case of a small employer carrier doing business in one established geographic

service area of the state, this section only applies to the carrier's operations in that

service area.

4. A small employer carrier offering through a network plan may not be required to offer

coverage or accept applications pursuant to subsection 1 or 2 in the case of the

following:

a. To an eligible person who no longer resides, lives, or works in the service area, or

in an area for which the carrier is authorized to do business, but only if coverage

is terminated under this subdivision uniformly without regard to any health

status-related factor; or

b. To a small employer that no longer has any enrollee in connection with the plan

who lives, resides, or works in the service area of the carrier, or the area for

which the carrier is authorized to do business.

5. At the time of coverage renewal, a health insurance carrier may modify the health

insurance coverage for a product offered to a group health plan if, for coverage that is

available in such market other than only through one or more bona fide associations,

the modification is reasonable, consistent with state law, and effective on a uniform

basis among group health plans with that product. If coverage is modified, the carrier

shall:

a. Provide advance notice of its decision under this subsection to the commissioner

at least three working days prior to mailing the notice to the affected small

employers and participants and beneficiaries.

b. Provide notice of the decision to modify health coverage to all affected small

employers, participants, and beneficiaries and the commissioner sixty days prior

to the modification of health coverage by the carrier.
N.D. Cent. Code § 26.1-21-10.1 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-10.1
26.1-21-10.1. State employee - Defense
Status: repealed

26.1-21-10.1. State employee - Defense

Repealed by S.L. 1997, ch. 286, § 11.
N.D. Cent. Code § 26.1-26-39 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-39
26.1-26-39. Refusal of license - Notification of applicant - No refund of fees
Status: in_force

26.1-26-39. Refusal of license - Notification of applicant - No refund of fees

If the commissioner finds the applicant has not met the requirements for licensing or license

renewal, the commissioner shall refuse to issue or renew the license. The commissioner shall,

in writing, promptly notify the applicant of the refusal, stating the grounds for the refusal. All fees

accompanying the application for license are not refundable.
N.D. Cent. Code § 26.1-09-10 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-10
26.1-09-10. Attorney's license fee and gross premium tax in lieu of other taxes
Status: in_force

26.1-09-10. Attorney's license fee and gross premium tax in lieu of other taxes

The attorney, in lieu of all other state, county, or municipal fees and taxes of any and every

character in this state, shall pay annually to the state, on account of the transaction of the

reciprocal or interinsurance exchange business in this state, a license fee of fifteen dollars and a

tax as provided by section 26.1-03-17 on the gross premiums or deposits collected from

subscribers in this state after deducting therefrom all sums returned to the subscribers or

credited to their accounts other than for losses.
N.D. Cent. Code § 26.1-03.1-12 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-12
26.1-03.1-12. Notices
Status: in_force

26.1-03.1-12. Notices

All notices by the commissioner to an insurer that may result in regulatory action hereunder

are effective upon dispatch if transmitted by registered mail, or in the case of any other

transmission is effective upon the insurer's receipt of the notice.
N.D. Cent. Code § 26.1-11-04 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-04
26.1-11-04. Foreign life company required to maintain funds or stop writing business - Penalty
Status: in_force

26.1-11-04. Foreign life company required to maintain funds or stop writing business -

Penalty.

When the actual funds of any foreign life insurance company authorized to do business in

this state are not of a net value equal to the net value of its policies according to the combined

experience or actuaries' rate of mortality, with interest at four percent per annum, or by such

higher standard as the company may have adopted, the commissioner shall give notice to the

company and its agents to discontinue the issuance of new policies in this state until its funds

have become equal to its liabilities when its policies are valued as provided in this section. Any

officer or agent who, after notice has been given, issues or delivers a new policy from and in

behalf of the company before its funds have become equal to its liabilities as provided by this

section is guilty of a class A misdemeanor. This section does not apply to a cooperative or

assessment life association licensed to transact business in this state.
N.D. Cent. Code § 26.1-52-05 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-05
26.1-52-05. Coverage and forms
Status: in_force

26.1-52-05. Coverage and forms

The plan must use standard policy forms to provide coverage for basic property and

homeowners insurance. The plan may not provide coverage for automobile or commercial risks.
N.D. Cent. Code § 26.1-18.1-03.1 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-03.1
26.1-18.1-03.1. Bond or insurance requirement
Status: in_force

26.1-18.1-03.1. Bond or insurance requirement

A qualified program of all-inclusive care for the elderly that operates in this state shall

maintain a surety bond, in the amount of two hundred fifty thousand dollars. Any surety bond

issued under this section must authorize recovery by the commissioner on behalf of any person

in this state that sustained damages as the result of unfair practices, conviction of fraud, or

failure by a qualified program of all-inclusive care for the elderly to perform a contractual

obligation owed to the person.
N.D. Cent. Code § 26.1-29-06 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-06
26.1-29-06. When insurable interest must exist
Status: in_force

26.1-29-06. When insurable interest must exist

An insurable interest must exist when the insurance takes effect and when the loss occurs

but need not exist in the meantime.
N.D. Cent. Code § 26.1-17.1-21 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-21
26.1-17.1-21. Penalties
Status: in_force

26.1-17.1-21. Penalties

In lieu of any penalty specified elsewhere in this chapter, or when no penalty is specifically

provided, whenever any prepaid limited health service organization or other person, corporation,

partnership, or entity subject to this chapter has been found after hearing to have violated any

provision of this chapter, the commissioner may:

1. Issue and cause to be served upon the organization, person, or entity charged with the

violation a copy of such findings and an order requiring such organization, person, or

entity to cease and desist from engaging in the act or practice which constitutes the

violation.

2. Impose a monetary penalty of not more than one thousand dollars for each violation,

but not to exceed an aggregate penalty of ten thousand dollars.
N.D. Cent. Code § 26.1-03-20 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-20
26.1-03-20. Examinations - By whom conducted - Compensation to be paid into insurance regulatory trust fund
Status: repealed

26.1-03-20. Examinations - By whom conducted - Compensation to be paid into

insurance regulatory trust fund.

Repealed by S.L. 1993, ch. 292, § 49.
N.D. Cent. Code § 26.1-14-11 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-11
26.1-14-11. Limited liability of insureds
Status: in_force

26.1-14-11. Limited liability of insureds

1. Any person insured by the company for liability because of injury arising out of the

rendering of or the failure to render professional services in limits equal to or greater

than five hundred thousand dollars for each claim or suit covered, subject to an

aggregate limit of liability for all claims insured in a single policy period equal to or in

excess of one million dollars, is immune from all liability in excess of these limits, and

further is immune from any liability for sums owing by the company under the terms of

the policy regardless of whether or not the company has paid the sums. The immunity

established by this section applies to an insured individual, professional service

corporations, or professional service limited liability companies notwithstanding any

other provision of the law.

2. This section does not relieve an insured from the insured's personal share of liability

not in excess of the five hundred thousand dollar and one million dollar limitations

specified in subsection 1 for a loss, expense, or damage not insured by the company

by reason of noncoverage, exclusions, deductibles, loss-sharing provisions, or

conditions in the applicable policy of the company.
N.D. Cent. Code § 26.1-35-01 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-01
26.1-35-01. Reserve valuation
Status: in_force

26.1-35-01. Reserve valuation

1. The following apply to policies and contracts issued before the operative date of the

valuation manual:

a. The commissioner shall annually value, or cause to be valued, the reserve

liabilities, in this chapter referred to as reserves, for all outstanding life insurance

policies and annuity and pure endowment contracts of every life insurer doing

business in this state issued after June 30, 1977, and before the operative date of

the valuation manual. In calculating the reserves, the commissioner may use

group methods and approximate averages for fractions of a year or otherwise. In

lieu of the valuation of the reserves required of a foreign or alien insurer, the

commissioner may accept a valuation made, or caused to be made, by the

insurance supervisory official of any state or other jurisdiction when the valuation

complies with the minimum standards provided in this chapter.

b. Except sections 26.1-35-00.2 and 26.1-35-12, this chapter applies to all policies

and contracts, as appropriate, subject to this chapter issued after June 30, 1977,

and before the operative date of the valuation manual; however, sections

26.1-35-00.2 and 26.1-35-12 do not apply to such policies and contracts.

c. The minimum standard for the valuation of policies and contracts issued before

July 1, 1977, are the standards provided by the laws in effect immediately before

that date.

2. The following apply to policies and contracts issued on or after the operative date of

the valuation manual:

a. Annually, the commissioner shall value, or cause to be valued, the reserve

liabilities, in this chapter referred to as reserves, for all outstanding life insurance

contracts, annuity and pure endowment contracts, accident and health contracts,

and deposit-type contracts of every insurer issued on or after the operative date

of the valuation manual. In lieu of the valuation of the reserves required of a

foreign or alien insurer, the commissioner may accept a valuation made, or

caused to be made, by the insurance supervisory official of any state or other

jurisdiction when the valuation complies with the minimum standard provided in

this chapter.

b. The provisions set forth in sections 26.1-35-00.2 and 26.1-35-12 apply to all

policies and contracts issued on or after the operative date of the valuation

manual.
N.D. Cent. Code § 26.1-26-43 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-43
26.1-26-43. License suspension, revocation, or refusal - Business entity - Additional ground
Status: in_force

26.1-26-43. License suspension, revocation, or refusal - Business entity - Additional

ground.

The license of a business entity may be suspended, revoked, or refused if the

commissioner finds, after hearing, that an individual licensee's violation was known or should

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

business entity and the violation was not reported to the commissioner nor corrective action

taken in relation to the violation.
N.D. Cent. Code § 26.1-23.1-01 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-01
26.1-23.1-01. Government self-insurance pools - Regulation - Reinsurance
Status: in_force

26.1-23.1-01. Government self-insurance pools - Regulation - Reinsurance

1. Any two or more entities that have united to self-insure against their legal liability under

chapter 32-12.1 or any state agency that unites with another state agency or political

subdivision, or both, to self-insure against their legal liabilities are subject to the

provisions of this chapter with the exception of a city and its park district established

pursuant to chapter 40-49. Government self-insurance pools may only provide

coverage of the following types for pool members, their officers, employees, and

agents:

a. Casualty insurance, including general, public officials, and professional liability

coverages. However, if a court determines by clear and convincing evidence a

governing body of a political subdivision took intentional action through an

ordinance, administrative rule, or any other official action in violation of any state

law, the political subdivision is liable to the self-insurance pool for all attorney

fees, expenses, and costs incurred defending the action.

b. Automobile insurance, including motor vehicle liability insurance coverage,

security for motor vehicles owned or operated as required by chapter 26.1-41,

and protection against other liability and laws associated with the ownership of

motor vehicles and automobile physical damage coverages.

c. Property insurance, including inland marine coverage, money and securities

coverage, and extra expense coverage. However, this subdivision does not

authorize government self-insurance pools to write those types of insurance

coverages offered by the state fire and tornado fund under the provisions of

chapter 26.1-22 as they existed on December 31, 1988, unless a government

self-insurance pool enters a contract with the office of management and budget to

provide services for the state fire and tornado fund under section 26.1-22-02.

d. Other coverages authorized by the commissioner and necessary to a pool's

membership.

2. A government self-insurance pool may not expose itself to loss on any single risk or

hazard in an amount exceeding ten percent of the amount of its admitted assets

unless the pool obtains excess insurance or reinsurance with insurance companies

approved for such business by the insurance commissioner.
N.D. Cent. Code § 26.1-01-07.6 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-07.6
26.1-01-07.6. Medicare provider-sponsored organizations
Status: in_force

26.1-01-07.6. Medicare provider-sponsored organizations

The insurance commissioner shall adopt rules relating to provider-sponsored organizations

as defined in section 4001 of the Balanced Budget Act of 1997 [Pub. L. 105-33; 111 Stat. 312;

42 U.S.C. 1395 et seq.].
N.D. Cent. Code § 26.1-26.4-04.2 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-04.2
26.1-26.4-04.2. Utilization review - Duty of health care insurers
Status: in_force

26.1-26.4-04.2. Utilization review - Duty of health care insurers

A health care insurer that contracts with another entity to perform utilization review on its

behalf remains responsible to ensure that all the requirements of this chapter are met to the

same extent the health care insurer would be if it performed the utilization review itself.
N.D. Cent. Code § 26.1-36.4-06 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-06
26.1-36.4-06. Modified community rating
Status: in_force

26.1-36.4-06. Modified community rating

Premium rates for individual policies are subject to the following:

1. For any class of individuals, the premium rates charged during a rating period to the

individuals in that class for the same or similar coverage may not vary by a ratio of

more than six to one after August 1, 1995, and by a ratio of more than five to one after

August 1, 1996, when age, industry, gender, and duration of coverage of the

individuals are considered. Gender and duration of coverage may not be used as a

rating factor for policies issued after January 1, 1997.

2. An insurer, in addition to the factors set forth in subsection 1, may use geography,

family composition, healthy lifestyles, and benefit variations to determine premium

rates.
N.D. Cent. Code § 26.1-13-14 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-14
26.1-13-14. County mutual company - Insurance authority
Status: in_force

26.1-13-14. County mutual company - Insurance authority

A county mutual insurance company may insure against loss or damage by fire; lightning;

cyclone; windstorm; tornado; hail, except upon growing crops; any insured hazard upon

livestock; explosion, except the explosion of steam boilers and flywheels; riot; riot attending a

strike; civil commotion; aircraft; vehicles; smoke to the property of the insured; theft; vandalism;

malicious mischief; water damage and freezing; collision and overturn of farm machinery;

collapse of buildings; glass breakage; the additional living expenses incurred over and above

normal living costs in cases of damage; the removal of debris; the cost of repairing or replacing

homes or living residences; or all such forms of insurance.
N.D. Cent. Code § 26.1-53.1-27 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-27
26.1-53.1-27. Rulemaking
Status: in_force

26.1-53.1-27. Rulemaking

The commissioner may adopt rules for the implementation and administration of this

chapter.
N.D. Cent. Code § 26.1-26-18 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-18
26.1-26-18. License requirement - Brokers - Bond
Status: repealed

26.1-26-18. License requirement - Brokers - Bond

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-29-25 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-25
26.1-29-25. Misrepresentations - Determination of materiality - Effect
Status: in_force

26.1-29-25. Misrepresentations - Determination of materiality - Effect

An oral or written misrepresentation made in the negotiation of an insurance contract or

policy by the insured or in the insured's behalf is material or defeats or avoids the policy or

prevents its attaching only if the misrepresentation has been made with actual intent to deceive

or unless the matter misrepresented increased the risk of loss.