N.D. Cent. Code § 26.1-25-18 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-18
26.1-25-18. Penalties
Status: in_force

26.1-25-18. Penalties

Any person who violates this chapter shall be guilty of a class B misdemeanor.

The commissioner may suspend the license of any advisory organization or insurer which

fails to comply with the order of the commissioner with the time limited by the order or any

extension thereof which the commissioner may grant. However, no right to suspend any license

exists until after the time for appeal from the order has expired, or if an appeal has been taken,

until the order has been affirmed, and no right of suspension exists if prompt compliance with

the order is made following the expiration of the time for appeal or the entry of a final order or

judgment of affirmance upon appeal. The commissioner may determine when a suspension

becomes effective and it remains in effect for the period fixed by the commissioner, unless the

commissioner modifies or rescinds the suspension, or until the order upon which the suspension

is based is modified, rescinded, or reversed.

A license may not be suspended or revoked except upon a written order of the

commissioner, stating the findings, made after a hearing held upon not less than ten days'

written notice to the person or organization specifying the alleged violation.
N.D. Cent. Code § 26.1-41-16 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-16
26.1-41-16. Insurer's right of subrogation
Status: in_force

26.1-41-16. Insurer's right of subrogation

A basic no-fault insurer which has paid or may become obligated to pay basic no-fault

benefits under this chapter is subrogated to the extent of its obligations to all of the rights of the

injured person against any person other than a secured person. The subrogee has a lien to the

extent of its obligations, and no release of rights is effective against the rights without the

subrogee's consent.
N.D. Cent. Code § 26.1-40-11.1 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-11.1
26.1-40-11.1. Juvenile's suspension of driving privileges - Nontraffic delinquent conduct
Status: in_force

26.1-40-11.1. Juvenile's suspension of driving privileges - Nontraffic delinquent

conduct.

Insurers are prohibited from using or relying on a nontraffic delinquent juvenile's suspension

of driving privileges under section 27-20.4-16 as a reason for canceling, denying, or

nonrenewing the automobile insurance policy of the nontraffic delinquent juvenile offender or the

parents of the nontraffic delinquent juvenile offender.
N.D. Cent. Code § 26.1-07-19 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-19
26.1-07-19. Receiver may not increase liabilities of company - Exception
Status: repealed

26.1-07-19. Receiver may not increase liabilities of company - Exception

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-37-04 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-04
26.1-37-04. Forms of credit life insurance and credit accident and health insurance
Status: repealed

26.1-37-04. Forms of credit life insurance and credit accident and health insurance

Repealed by S.L. 2001, ch. 278, § 12.
N.D. Cent. Code § 26.1-33-37 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-37
26.1-33-37. Suicide - Determination - No defense to life policy or certificate after one year
Status: in_force

26.1-33-37. Suicide - Determination - No defense to life policy or certificate after one

year.

The sanity or insanity of the person is not a factor in determining whether a person

committed suicide within the terms of a life insurance policy or certificate regulating the payment

of benefits in the event of the insured's suicide. In any suit on a life insurance policy or

certificate, it is no defense after the policy or certificate has been in force one year that the

insured committed suicide, and any provision or stipulation to the contrary in the policy or

certificate is void.
N.D. Cent. Code § 26.1-34-02 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-02
26.1-34-02. Minimum nonforfeiture amount defined
Status: in_force

26.1-34-02. Minimum nonforfeiture amount defined

The minimum values as specified in sections 26.1-34-03 through 26.1-34-06 and section

26.1-34-08 of any paid-up annuity, cash surrender, or death benefits available under an annuity

contract must be based upon minimum nonforfeiture amounts as defined in this section.

1. For an annuity contract issued before August 1, 2003:

a. With respect to annuity contracts providing for flexible considerations, the

minimum nonforfeiture amount at any time at or prior to the commencement of

any annuity payments must be equal to an accumulation up to such time at a rate

of interest of three percent per year of percentages of the net considerations, as

hereinafter defined, paid prior to such time, decreased by the sum of any prior

withdrawals from or partial surrenders of the contract accumulated at a rate of

interest of three percent per year and the amount of any indebtedness to the

company on the contract, including interest due and accrued; and increased by

any existing additional amounts credited by the company to the contract. The net

considerations for a given contract year used to define the minimum nonforfeiture

amount must be an amount not less than zero and must equal the corresponding

gross considerations credited to the contract during that contract year less an

annual contract charge of thirty dollars and less a collection charge of one dollar

and twenty-five cents for each consideration credited to the contract during that

contract year. The percentages of net considerations must be sixty-five percent of

the net consideration for the first contract year and eighty-seven and one-half

percent of the net considerations for the second and later contract years.

Notwithstanding the preceding sentence, the percentage must be sixty-five

percent of the portion of the total net consideration for any renewal contract year

which exceeds by not more than two times the sum of those portions of the net

considerations in all prior contract years for which the percentage was sixty-five

percent.

b. With respect to contracts providing for fixed scheduled considerations, minimum

nonforfeiture amounts must be calculated on the assumption that considerations

are paid annually in advance and must be defined as for contracts with flexible

considerations which are paid annually, with two exceptions:

(1) The portion of the net consideration for the first contract year to be

accumulated is the sum of sixty-five percent of the net consideration for the

first contract year plus twenty-two and one-half percent of the excess of the

net consideration for the first contract year over the lesser of the net

considerations for the second and third contract years.

(2) The annual contract charge is the lesser of thirty dollars or ten percent of the

gross annual considerations.

c. With respect to contracts providing for a single consideration, minimum

nonforfeiture amounts must be defined as for contracts with flexible

considerations except that the percentage of net consideration used to determine

the minimum nonforfeiture amount must equal ninety percent and the net

consideration must be the gross consideration less a contract charge of

seventy-five dollars.

2. For an annuity contract issued after July 31, 2005:

a. The minimum nonforfeiture amount at any time at or before the commencement

of any annuity payments must be equal to an accumulation up to such time at

rates of interest, as provided under subdivision c, of the net considerations, as

defined under subdivision b, paid before such time, decreased by the sum of:

(1) Any prior withdrawals from or partial surrenders of the contract accumulated

at rates of interest as provided under subdivision c;

(2) An annual contract charge of fifty dollars, accumulated at rates of interest as

provided under subdivision c;

(3) Any premium tax paid by the company for the contract, accumulated at rates

of interest as provided under subdivision c; and

(4) The amount of any indebtedness to the company on the contract, including

interest due and accrued.

b. The net considerations for a given contract year used to define the minimum

nonforfeiture amount under subdivision a must be an amount equal to

eighty-seven and one-half percent of the gross considerations credited to the

contract during that contract year.

c. The interest rate used in determining minimum nonforfeiture amounts must be

determined as the lesser of:

(1) Three percent per annum; or

(2) The five-year constant maturity rate reported by the federal reserve as of a

date or average over a period, reduced by one hundred twenty-five basis

points. The rate calculated under this paragraph may not be less than fifteen

one-hundredths of one percent, must be specified in the contract, and must

be determined no more than fifteen months before the contract issue date or

redemption date.

d. The interest rate used in determining minimum nonforfeiture amounts applies for

an initial period and may be redetermined for additional periods. The

redetermination date basis and period, if any, must be stated in the contract. The

basis is the date or average over a specified period that produces the value of the

five-year constant maturity treasury rate to be used at each redetermination date.

e. Notwithstanding subdivisions a, b, c, and d, during the period or term that a

contract provides substantive participation in an equity indexed benefit, the

contract may increase the reduction of one hundred twenty-five basis points

under paragraph 2 of subdivision c by an amount not to exceed one hundred

basis points, in order to reflect the value of the equity index benefit. The present

value at the contract issue date, the present value at each redetermination date,

or the additional reduction may not exceed the market value of the benefit. The

commissioner may require a demonstration that the present value of the

reduction does not exceed the market value of the benefit. Lacking such a

demonstration acceptable to the commissioner, the commissioner may disallow

or limit the additional reduction.

f. The commissioner may adopt rules to implement the provisions of subdivision e

and to provide further adjustments to the calculation of minimum nonforfeiture

amounts for contracts that provide substantive participation in an equity index

benefit and for other contracts if the commissioner determines that adjustments

are justified.

3. For an annuity contract issued after July 31, 2003, and before August 1, 2005, on a

contract form by contract form basis, a company may elect to apply the provisions of

subsection 1 or 2.
N.D. Cent. Code § 26.1-36-20 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-20
26.1-36-20. Juvenile's accident and health coverage to continue - Conditions
Status: in_force

26.1-36-20. Juvenile's accident and health coverage to continue - Conditions

Insurance companies and nonprofit health service corporations licensed in this state shall

continue coverage of a juvenile insured under an accident and health insurance policy or a

health service contract while the legal custody of the juvenile has been given by a court, under

chapters 27-20.3 and 27-20.4, to any public institution or agency, to the same extent as the

general public is covered as long as the juvenile meets all the other usual qualifications for

insurability and continues to pay the policy or contract premiums. A juvenile's incarceration may

not be a basis for cancellation of the juvenile's accident and health insurance policy or health

service contract.
N.D. Cent. Code § 26.1-36-23.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-23.1
26.1-36-23.1. Former spouse's and dependent children's accident and health coverage to continue - Conditions
Status: in_force

26.1-36-23.1. Former spouse's and dependent children's accident and health

coverage to continue - Conditions.

1. No group accident and health insurance policy, including a policy issued under a

self-insured plan, group health service contract issued under chapter 26.1-17, or

evidence of coverage issued under chapter 26.1-18.1, providing coverage for hospital

or medical expenses, delivered, issued for delivery, renewed, or amended after July 1,

1987, which in addition to covering the insured also provides coverage to the spouse

of the insured, may contain a provision for termination of coverage for a spouse

covered under the policy, contract, or evidence of coverage solely as a result of a

break in the marital relationship except by reason of an entry of a decree of annulment

of marriage or divorce.

2. Every policy, contract, or evidence of coverage described in subsection 1 must contain

a provision that permits continuation of coverage of the insured's former spouse and

dependent children upon entry of a decree of annulment of marriage or divorce, if the

decree requires the insured to provide continued coverage for those persons. The

coverage may be continued until the date of remarriage of the insured's former spouse

or the date coverage would otherwise terminate, whichever occurs first, but not to

exceed thirty-six months. The insured shall pay any required premium contributions for

the coverage not to exceed one hundred two percent of the premium for the group

coverage.

3. Every policy, contract, or evidence of coverage described in subsection 1 must contain

a provision allowing a former spouse and dependent children, without providing

evidence of insurability, to obtain from the insurer at the expiration of any continuation

of coverage under subsection 2 or upon termination of coverage by reason of an entry

of a decree of annulment or divorce which does not require the insured to provide

continued coverage for the former spouse and dependent children, conversion

coverage providing comparable benefits of the group policy, contract, or evidence of

coverage, if an application is made to the insurer within thirty days following notice of

the expiration of the continued coverage and upon payment of the appropriate

premium. A policy, contract, or evidence of coverage providing reduced benefits at a

reduced premium rate may be accepted by the former spouse and dependent children

in lieu of the existing coverage. The policy, contract, or evidence of coverage must be

renewable at the option of the former spouse as long as the former spouse is not

covered under another accident and health insurance plan, policy, or contract, up to

age sixty-five or to the day before the date of eligibility for coverage under title XVIII of

the Social Security Act [42 U.S.C. 1305 et seq.], as amended.
N.D. Cent. Code § 26.1-12.2-17 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-17
26.1-12.2-17. Commencement of business as a stock insurance company
Status: in_force

26.1-12.2-17. Commencement of business as a stock insurance company

A converting mutual company may not engage in the business of insurance as a stock

company until the converting stock company complies with all provisions of this chapter.
N.D. Cent. Code § 26.1-38.1-11 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-11
26.1-38.1-11. Miscellaneous provisions
Status: in_force

26.1-38.1-11. Miscellaneous provisions

1. This chapter does not reduce the liability for unpaid assessments of the insured of an

impaired or insolvent insurer operating under a plan with assessment liability.

2. Records must be kept of all meetings of the board of directors to discuss the activities

of the association in carrying out its powers and duties under section 26.1-38.1-05.

The records of the association with respect to an impaired or insolvent insurer may not

be disclosed before the termination of a liquidation, rehabilitation, or conservation

proceeding involving the impaired or insolvent insurer, except upon the termination of

the impairment or solvency of the member insurer, or upon the order of a court of

competent jurisdiction. Nothing in this subsection limits the duty of the association to

render a report of its activities under section 26.1-38.1-12.

3. For the purpose of carrying out its obligations under this chapter, the association must

be deemed to be a creditor of the impaired or insolvent insurer to the extent of assets

attributable to covered policies reduced by any amounts to which the association is

entitled as subrogee pursuant to subsections 12, 13, and 14 of section 26.1-38.1-05.

Assets of the impaired or insolvent insurer attributable to covered policies must be

used to continue as covered policies and pay all contractual obligations of the impaired

or insolvent insurer as required by this chapter. Assets attributable to covered policies

or contracts, as used in this subsection, are that proportion of the assets which the

reserves that should have been established for such policies or contracts bear to the

reserves that should have been established for all policies of insurance or health

benefit plans written by the impaired or insolvent insurer.

4. As a creditor of the impaired or insolvent insurer as established in subsection 3 and

consistent with chapter 26.1-06, the association and other similar associations are

entitled to receive a disbursement of assets out of the marshaled assets, from time to

time as the assets become available to reimburse it, as a credit against contractual

obligations under this chapter. If the liquidator, within one hundred twenty days of a

final determination of insolvency of a member insurer by the receivership court, does

not apply to the court for the approval of a proposal to disburse assets out of

marshaled assets to guaranty associations having obligations because of the

insolvency, the association is entitled to apply to the receivership court for approval of

its own proposal to disburse these assets.

5. Prior to the termination of any liquidation, rehabilitation, or conservation proceeding,

the court may take into consideration the contributions of the respective parties,

including the association, the shareholders, contract owners, certificate holders,

enrollees, and policy owners of the insolvent insurer, and any other party with a bona

fide interest, in making an equitable distribution of the ownership rights of such

insolvent insurer. In making such a determination, consideration must be given to the

welfare of the policy owners, contract owners, certificate holders, and enrollees of the

continuing or successor member insurer.

6. No distribution to stockholders, if any, of an impaired or insolvent insurer may be made

until and unless the total amount of valid claims of the association with interest thereon

for funds expended in carrying out its powers and duties under section 26.1-38.1-05

with respect to the member insurer have been fully recovered by the association.

7. a. If an order for liquidation or rehabilitation of a member insurer domiciled in this

state has been entered, the receiver appointed under the order has the right to

recover on behalf of the member insurer, from any affiliate that controlled its

capital stock, the amount of distributions, other than stock dividends paid by the

member insurer on its capital stock, made at any time during the five years

preceding the petition for liquidation or rehabilitation subject to the limitations of

subdivisions b, c, and d.

b. No such distribution is recoverable if the member insurer shows that when paid

the distribution was lawful and reasonable, and that the member insurer did not

know and could not reasonably have known that the distribution might adversely

affect the ability of the member insurer to fulfill its contractual obligations.

c. Any person who was an affiliate that controlled the member insurer at the time

the distributions were paid is liable up to the amount of distributions the person

received. Any person who was an affiliate that controlled the member insurer at

the time the distributions were declared is liable up to the amount of distributions

the person would have received if payment had been made immediately. If two or

more persons are liable with respect to the same distributions, they are jointly and

severally liable.

d. The maximum amount recoverable under this subsection is the amount needed in

excess of all other available assets of the insolvent insurer to pay the contractual

obligations of the insolvent insurer.

e. If any person liable under subdivision c is insolvent, all its affiliates that controlled

it at the time the distribution was paid, are jointly and severally liable for any

resulting deficiency in the amount recovered from the insolvent affiliate.
N.D. Cent. Code § 26.1-06.2-08 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-08
26.1-06.2-08. Rules
Status: in_force

26.1-06.2-08. Rules

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

chapter.
N.D. Cent. Code § 26.1-24-04 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-04
26.1-24-04. Premium return in cases of overinsurance
Status: in_force

26.1-24-04. Premium return in cases of overinsurance

In cases of overinsurance, the insured is entitled to a return of the premium as follows:

1. In overinsurance by several insurers, to a ratable return of premium proportioned to

the amount by which the aggregate sum insured in all the policies exceeds the value

of the thing at risk.

2. In overinsurance effected by simultaneous policies, the insurers contribute to the

premium to be returned in proportion to the amount insured by their respective

policies.

3. In overinsurance effected by successive policies, those only contribute to a return of

the premium who are exonerated by prior insurance from the liability assumed by them

and in proportion as the sum for which the premium was paid exceeds the amount for

which, on account of prior insurance, they could be made liable.
N.D. Cent. Code § 26.1-25.1-09 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-09
26.1-25.1-09. Sale of policy term information by consumer reporting agency
Status: in_force

26.1-25.1-09. Sale of policy term information by consumer reporting agency

1. A consumer reporting agency may not provide or sell data or lists that include any

information that in whole or in part was submitted in conjunction with an insurance

inquiry about a consumer's credit information or a request for a credit report or

insurance score. Such information includes the expiration dates of an insurance policy

or any other information that may identify time periods during which a consumer's

insurance may expire and the terms and conditions of the consumer's insurance

coverage.

2. Subsection 1 does not apply to data or lists the consumer reporting agency supplies to

the insurance producer from whom information was received, the insurer on whose

behalf such producer acted, or such insurer's affiliates or holding companies.

3. This section does not restrict any insurer from being able to obtain a claims history

report or a motor vehicle report.
N.D. Cent. Code § 26.1-26-45.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-45.1
26.1-26-45.1. Reporting of actions
Status: in_force

26.1-26-45.1. Reporting of actions

1. An insurance producer shall report to the commissioner any administrative action

taken against the insurance producer's license in another jurisdiction or by another

governmental agency in this state within thirty days of the final disposition of the

matter. This report must include a copy of the order, consent to order, or other relevant

legal documents.

2. Within thirty days after a criminal conviction, an insurance producer shall report to the

commissioner any criminal conviction of the insurance producer taken in any

jurisdiction. The report must include a copy of the initial complaint, the order issued by

the court, and any other relevant legal documents.
N.D. Cent. Code § 26.1-10.2-03 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-03
26.1-10.2-03. Own risk and solvency assessment requirement
Status: in_force

26.1-10.2-03. Own risk and solvency assessment requirement

Subject to section 26.1-10.2-05, an insurer, or the insurance group of which the insurer is a

member, regularly shall conduct an own risk and solvency assessment consistent with a

process comparable to the own risk and solvency assessment guidance manual. The own risk

and solvency assessment must be conducted no less than annually but also at any time there

are significant changes to the risk profile of the insurer or the insurance group of which the

insurer is a member.
N.D. Cent. Code § 26.1-20.1-02 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-02
26.1-20.1-02. License required - Renewal - Application
Status: in_force

26.1-20.1-02. License required - Renewal - Application

1. No person may finance insurance premiums in this state without a license issued by

the commissioner. Licenses may be renewed each year upon payment of the required

fee.

2. The commissioner shall issue or renew a license if the commissioner finds that the

person to be licensed:

a. Is competent and trustworthy and intends to act in good faith in the financing of

insurance premiums;

b. Has a good business reputation and has had experience, training, or education

qualifying the person to finance insurance premiums; and

c. If a corporation, is incorporated under the laws of this state or is a foreign

corporation authorized to transact business in this state or if a limited liability

company, is organized under the laws of this state or is a foreign limited liability

company authorized to transact business in this state.

3. This chapter does not apply to insurance producers; insurers who finance their own

premiums; banks; savings and loan associations; credit unions; annuity, safe deposit,

and trust companies; subsidiary trust companies; small loan companies; licensed

money brokers; or other financial institutions licensed to do business in this state.
N.D. Cent. Code § 26.1-49-06 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-06
26.1-49-06. Election of directors - Vote by mail
Status: in_force

26.1-49-06. Election of directors - Vote by mail

Directors of health provider cooperatives are elected under procedures set forth in chapter
N.D. Cent. Code § 26.1-05-32 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-32
26.1-05-32. Impairment of capital or surplus of domestic life insurance company - Determination of deficiency - Notice not to issue policies
Status: in_force

26.1-05-32. Impairment of capital or surplus of domestic life insurance company -

Determination of deficiency - Notice not to issue policies.

If a domestic stock life insurance company's minimum basic paid-in capital or surplus

required by section 26.1-05-04 or the minimum basic surplus of a domestic mutual insurance

company required by section 26.1-12-10 becomes impaired, the commissioner shall prohibit the

company and its agents from issuing new policies until the deficiency is cured. The

commissioner shall determine the amount of the deficiency, notify the company of the deficiency

and require the company to cure the deficiency, and require the company to file proof thereof

with the commissioner within a period specified in the notice. The period may not be less than

thirty days nor more than ninety days from the date of issuance of the notice.
N.D. Cent. Code § 26.1-18.1-24 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-24
26.1-18.1-24. Acquisition of control of or merger of a health maintenance organization
Status: in_force

26.1-18.1-24. Acquisition of control of or merger of a health maintenance

organization.

No person may make a tender for or a request or invitation for tenders of, or enter into an

agreement to exchange securities for or acquire in the open market or otherwise, any voting

security of a health maintenance organization or enter into any other agreement if, after the

consummation thereof, that person would, directly or indirectly, or by conversion or by exercise

of any right to acquire, be in control of the health maintenance organization, and no person may

enter into an agreement to merge or consolidate with or otherwise to acquire control of a health

maintenance organization, unless, at the time any offer, request, or invitation is made or any

agreement is entered into, or prior to the acquisition of the securities if no offer or agreement is

involved, the person has filed with the commissioner and has sent to the health maintenance

organization information required by section 26.1-10-03 and the offer, request, invitation,

agreement, or acquisition has been approved by the commissioner. Approval by the

commissioner must be governed by section 26.1-10-03.
N.D. Cent. Code § 26.1-18.1-19 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-19
26.1-18.1-19. Suspension or revocation of certificate of authority
Status: in_force

26.1-18.1-19. Suspension or revocation of certificate of authority

1. Any certificate of authority issued under this chapter may be suspended or revoked,

and any application for a certificate of authority may be denied, if the commissioner

finds that any of these conditions exist:

a. The health maintenance organization is operating significantly in contravention of

its basic organizational document or in a manner contrary to that described in any

other information submitted under section 26.1-18.1-02, unless amendments to

the submissions have been filed with and approved by the commissioner.

b. The health maintenance organization issues an evidence of coverage or uses a

schedule of charges for health care services which do not comply with the

requirements of sections 26.1-18.1-07 and 26.1-18.1-15.

c. The health maintenance organization does not provide or arrange for basic health

care services.

d. (1) The health maintenance organization does not meet the requirements of

section 26.1-18.1-06; or

(2) The health maintenance organization is unable to fulfill its obligations to

furnish health care services.

e. The health maintenance organization is no longer financially responsible and may

reasonably be expected to be unable to meet its obligations to enrollees or

prospective enrollees.

f. The health maintenance organization has failed to correct, within the time

prescribed by subsection 3, any deficiency occurring due to the health

maintenance organization's prescribed minimum net worth being impaired.

g. The health maintenance organization has failed to implement the grievance

procedures required by section 26.1-18.1-10 in a reasonable manner to resolve

valid complaints.

h. The health maintenance organization, or any person on its behalf, has advertised

or merchandised its services in an untrue, misrepresentative, misleading,

deceptive, or unfair manner.

i. The continued operation of the health maintenance organization would be

hazardous to its enrollees.

j. The health maintenance organization has otherwise failed substantially to comply

with this chapter.

2. In addition to or in lieu of suspension or revocation of a certificate of authority pursuant

to this section, the applicant or health maintenance organization may be subjected to

an administrative penalty of up to ten thousand dollars for each cause for suspension

or revocation.

3. The following pertains when insufficient net worth is maintained:

a. Whenever the commissioner finds that the net worth maintained by any health

maintenance organization subject to the provisions of this chapter is less than the

minimum net worth required to be maintained by section 26.1-18.1-12, the

commissioner shall give written notice to the health maintenance organization of

the amount of the deficiency and require filing with the commissioner a plan for

correction of the deficiency acceptable to the commissioner, and correction of the

deficiency within a reasonable time, not to exceed sixty days, unless an extension

of time, not to exceed sixty additional days, is granted by the commissioner. Such

a deficiency must be deemed an impairment, and failure to correct the

impairment in the prescribed time is grounds for suspension or revocation of the

certificate of authority or for placing the health maintenance organization in

conservation, rehabilitation, or liquidation.

b. Unless allowed by the commissioner, no health maintenance organization or

person acting on its behalf may, directly or indirectly, renew, issue, or deliver any

certificate, agreement, or contract of coverage in this state, for which a premium

is charged or collected, when the health maintenance organization writing the

coverage is impaired, and the fact of the impairment is known to the health

maintenance organization or to the person. However, the existence of an

impairment does not prevent the issuance or renewal of a certificate, agreement,

or contract when the enrollee exercises an option granted under the plan to

obtain a new, renewed, or converted coverage.

4. A certificate of authority must be suspended or revoked or an application or a

certificate of authority denied or an administrative penalty imposed only after

compliance with the requirements of this section.

a. Suspension or revocation of a certificate of authority or the denial of an

application or the imposition of an administrative penalty pursuant to this section

must be by written order and must be sent to the health maintenance

organization or applicant by certified mail. The written order must state the

grounds, charges, or conduct on which suspension, revocation, or denial or

administrative penalty is based. The health maintenance organization or applicant

may in writing request a hearing within thirty days from the date of mailing of the

order. If no written request is made, the order is final upon the expiration of said

thirty days.

b. If the health maintenance organization or applicant requests a hearing pursuant

to this section, the commissioner shall issue a written notice of hearing and send

it to the health maintenance organization or applicant by certified or registered

mail stating:

(1) A specific time for the hearing, which may not be less than twenty nor more

than thirty days after mailing of the notice of hearing; and

(2) A specific place for the hearing, which may be either in Bismarck, North

Dakota, or in the county where the health maintenance organization's or

applicant's principal place of business is located.

After the hearing, or upon failure of the health maintenance organization to

appear at the hearing, the commissioner shall take whatever action the

commissioner deems necessary based on written findings and shall mail the

decision to the health maintenance organization or applicant. The action of the

commissioner is subject to review under chapter 28-32, or other applicable

statutory review process.

5. The provisions of chapter 28-32 apply to proceedings under this section to the extent

they are not in conflict with subdivision b of subsection 4.

6. When the certificate of authority of a health maintenance organization is suspended,

the health maintenance organization may not, during the period of the suspension,

enroll any additional enrollees except newborn children or other newly acquired

dependents of existing enrollees, and may not engage in any advertising or solicitation

whatsoever.

7. When the certificate of authority of a health maintenance organization is revoked, the

organization shall proceed, immediately following the effective date of the order of

revocation, to wind up its affairs, and shall conduct no further business except as may

be essential to the orderly conclusion of the affairs of the organization. It may engage

in no further advertising or solicitation whatsoever. The commissioner may, by written

order, permit the further operation of the organization as the commissioner may find to

be in the best interest of enrollees to the end that enrollees will be afforded the

greatest practical opportunity to obtain continuing health care coverage.
N.D. Cent. Code § 26.1-33.4-10 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-10
26.1-33.4-10. General rules
Status: in_force

26.1-33.4-10. General rules

1. A provider entering a life settlement contract with any owner of a policy, wherein the

insured is terminally or chronically ill, first shall obtain:

a. If the owner is the insured, a written statement from a licensed attending

physician that the owner is of sound mind and under no constraint or undue

influence to enter into a settlement contract; and

b. A document in which the insured consents to the release of the insured's medical

records to a provider, settlement broker, or insurance producer and, if the policy

was issued less than two years from the date of application for a settlement

contract, to the insurance company that issued the policy.

2. The insurer shall respond to a request for verification of coverage submitted by a

provider, settlement broker, or life insurance producer not later than thirty calendar

days from the date the request is received. The request for verification of coverage

must be made on a form approved by the commissioner. The insurer shall complete

and issue the verification of coverage or indicate in which respects it is unable to

respond. In its response, the insurer shall indicate whether, based on the medical

evidence and documents provided, the insurer intends to pursue an investigation at

this time regarding the validity of the insurance contract.

3. Before or at the time of execution of the settlement contract, the provider shall obtain a

witnessed document in which the owner consents to the settlement contract,

represents that the owner has a full and complete understanding of the settlement

contract, that the owner has a full and complete understanding of the benefits of the

policy, acknowledges that the owner is entering into the settlement contract freely and

voluntarily, and, for persons with a terminal or chronic illness or condition,

acknowledges that the insured has a terminal or chronic illness and that the terminal or

chronic illness or condition was diagnosed after the policy was issued.

4. The insurer may not unreasonably delay effecting change of ownership or beneficiary

with any life settlement contract lawfully entered in this state or with a resident of this

state.

5. If a settlement broker or life insurance producer performs any of these activities

required of the provider, the provider is deemed to have fulfilled the requirements of

this section.

6. If a broker performs the verification of coverage activities required of the provider, the

provider is deemed to have fulfilled the requirements of subsection 1 of section

26.1-33.4-08.

7. Within twenty days after an owner executes the life settlement contract, the provider

shall give written notice to the insurer that issued that insurance policy that the policy

has become subject to a life settlement contract. The notice must be accompanied by

the documents required by subdivision b of subsection 2 of section 26.1-33.4-09.

8. All medical information solicited or obtained by any licensee must be subject to the

applicable provision of state law relating to confidentiality of medical information if not

otherwise provided in this chapter.

9. All life settlement contracts entered in this state must provide the owner with a right to

rescind the contract before the earlier of sixty calendar days after the date upon which

the life settlement contract is executed by all parties or thirty calendar days after the

life settlement proceeds have been sent to the escrow agent by or on behalf of the

provider as provided in subsection 11. Rescission by the owner may be conditioned

upon the owner giving notice and repaying to the provider within the rescission period

all proceeds of the settlement and any premiums, loans, and loan interest paid by or

on behalf of the provider in connection with or as a consequence of the life settlement.

If the insured dies during the rescission period, the life settlement contract is deemed

to have been rescinded, subject to repayment to the provider or purchaser of all life

settlement proceeds and any premiums, loans, and loan interest that have been paid

by the provider or purchaser, within sixty calendar days of the death of the insured. In

the event of any rescission, if the provider has paid commissions or other

compensation to a broker in connection with the rescinded transaction, the broker shall

refund all the commissions and compensation to the provider within five business days

following receipt of written demand from the provider, which demand must be

accompanied by either the owner's notice of rescission if rescinded at the election of

the owner or notice of the death of the insured if rescinded by reason of the death of

the insured within the applicable rescission period.

10. Within three business days after receipt from the owner of documents to effect the

transfer of the insurance policy, the provider shall pay the proceeds of the settlement

to an escrow or trust account managed by a trustee or escrow agent in a state or

federally chartered financial institution pending acknowledgment of the transfer by the

issuer of the policy. The trustee or escrow agent must be required to transfer the

proceeds due to the owner within three business days of the later to occur of the

expiration of any then remaining rescission period or the escrow agent's receipt of the

acknowledgment of the properly completed transfer of ownership, assignment, or

designation of beneficiary from the insurance company.

11. Failure to tender the life settlement contract proceeds to the owner by the date

disclosed to the owner renders the contract voidable by the owner for lack of

consideration until the time the proceeds are tendered to and accepted by the owner. A

failure to give written notice of the right of rescission tolls the right of rescission until

sixty days after the written notice of the right of rescission has been given.

12. Any fee paid by a provider, party, individual, or an owner to a broker in exchange for

services provided to the owner pertaining to a life settlement contract must be

computed as a percentage of the offer obtained, not the face value of the policy. This

section does not prohibit a broker from reducing such broker's fee below this

percentage if the broker so chooses.

13. The broker shall disclose to the owner anything of value paid or given to a broker

which relates to a life settlement contract.

14. It is a violation of this chapter for any person to enter a life settlement contract at any

time before or at the time of the application for or issuance of a policy that is the

subject of a life settlement contract or within a five-year period commencing with the

date of issuance of the insurance policy or certificate unless the owner certifies to the

provider or the provider otherwise conclusively shows that one or more of the following

conditions have been met within the five-year period:

a. The policy was issued upon the owner's exercise of conversion rights arising out

of a group or individual policy, provided the total of the time covered under the

conversion policy plus the time covered under the prior policy is at least sixty

months. The time covered under a group policy must be calculated without regard

to any change in insurance carriers, provided the coverage has been continuous

and under the same group sponsorship;

b. The owner submitted independent evidence to the provider that one or more of

the following conditions have been met within the five-year period:

(1) The owner or insured is terminally or chronically ill;

(2) The owner's spouse died or no remaining beneficiaries are then surviving;

(3) The owner retired from full-time employment; or

(4) The owner became physically or mentally disabled and a physician

determined that the disability prevents the owner from maintaining full-time

employment;

c. A final order, judgment, or decree has been entered by a court of competent

jurisdiction, on the application of a creditor of the owner, adjudicating the owner in

default, bankrupt, or insolvent, or approving a petition seeking reorganization of

the owner or appointing a receiver, trustee, or liquidator to all or a substantial part

of the owner's assets; or

d. The owner entered a life settlement contract more than two years after the date of

issuance of a policy and, with respect to the policy, at all times before the date

that is two years after policy issuance, the following conditions are met:

(1) Policy premiums have been funded exclusively with unencumbered assets,

including an interest in the life insurance policy being financed only to the

extent of the policy's net cash surrender value, provided by, or fully recourse

liability incurred by, the insured or a person described in paragraph 5 of

subdivision b of subsection 11 of section 26.1-33.4-01;

(2) There is no agreement or understanding with any other person to guarantee

any such liability or to purchase, or stand ready to purchase, the policy,

including through an assumption or forgiveness of the loan; and

(3) Neither the insured nor the policy has been evaluated for settlement in

connection with the issuance of the policy.

15. Copies of the independent evidence described in subdivision b of subsection 14 and

documents required by subsection 1, 2, 3, or 7 must be submitted to the insurer when

the provider submits a request to the insurer for verification of coverage. The copies

must be accompanied by a letter of attestation from the provider that the copies are

true and correct copies of the documents received by the provider.

16. If the provider submits to the insurer a copy of the owner's or insured's certification

described in and the independent evidence required by subdivision b of subsection 14

when the provider submits a request to the insurer to effect the transfer of the policy or

certificate to the provider, the copy is deemed to establish conclusively that the life

settlement contract satisfies the requirements of this section and the insurer timely

shall respond to the request.
N.D. Cent. Code § 26.1-36-11 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-11
26.1-36-11. Accident and health policy provision denying insured right to employ doctor or enter hospital prohibited
Status: in_force

26.1-36-11. Accident and health policy provision denying insured right to employ

doctor or enter hospital prohibited.

Any provision in any accident or health insurance policy issued by any insurance company

denying the insured, in case of accident or sickness, the right to consult or employ any doctor

licensed to practice in this state the insured may choose, or to enter any hospital or sanitarium

organized and operating under the laws of this state the insured may select is void. The

insurance company shall recognize any proof of claim duly certified by such doctor or hospital or

sanitarium notwithstanding any provision contained in the policy.
N.D. Cent. Code § 26.1-31-03 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-03
26.1-31-03. Interest of insured in reinsurance contract
Status: in_force

26.1-31-03. Interest of insured in reinsurance contract

The original insured has no interest in a reinsurance contract.
N.D. Cent. Code § 26.1-27-03.1 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-03.1
26.1-27-03.1. Bond or insurance requirement
Status: in_force

26.1-27-03.1. Bond or insurance requirement

An administrator that administers or will administer self-insured plans in this state shall

maintain a surety bond or proof of insurance satisfactory to the commissioner for the use and

benefit of the commissioner for covered persons who have remitted premiums or insurance

charges or other moneys to the administrator in the course of the administrator's business in the

greater of the following amounts:

1. One hundred thousand dollars; or

2. Ten percent of the aggregate total amount of administered coverage under the plans

handled in this state.
N.D. Cent. Code § 26.1-31.2-05 — ND Code / Title 26.1 / Chapter 26.1-31.2 / Section 26.1-31.2-05
26.1-31.2-05. Reinsurance agreements affected
Status: in_force

26.1-31.2-05. Reinsurance agreements affected

Sections 26.1-31.2-01, 26.1-31.2-02, 26.1-31.2-03, and 26.1-31.2-04 apply to all cessions

after July 7, 1991, under reinsurance agreements which have had an inception, anniversary, or

renewal date not less than six months after July 7, 1991.
N.D. Cent. Code § 26.1-52-01 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-01
26.1-52-01. Sunrise - Trigger
Status: in_force

26.1-52-01. Sunrise - Trigger

The commissioner may implement a property insurance placement facility for those

residents who are unable to obtain necessary property insurance through the standard

insurance market. The commissioner shall hold a public hearing upon notice of not less than

twenty days to determine the reasonable availability of property insurance in the market. Upon a

finding by the commissioner that there is a lack of availability of property insurance in the

market, the commissioner shall by order authorize the implementation of a property insurance

placement facility as set forth in this chapter.
N.D. Cent. Code § 26.1-04-11 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-11
26.1-04-11. Immunity from prosecution
Status: in_force

26.1-04-11. Immunity from prosecution

If any person asks to be excused from attending and testifying or from producing any

evidence at any trial or hearing on the ground that the testimony or evidence required may tend

to incriminate that person or subject that person to a penalty or forfeiture, but is directed to give

the testimony or produce the evidence, that person shall comply with the direction; but no

testimony or evidence compelled from an individual after a valid claim of the privilege against

self-incrimination has been made may be used against the individual in any criminal proceeding,

or in any proceeding to subject the individual to a penalty or forfeiture. However, no individual so

testifying is exempt from prosecution or punishment for any perjury or false statements

committed while testifying and the testimony or evidence given or produced is admissible upon

any criminal action, investigation, or proceeding concerning the perjury or false statements, nor

is the individual exempt from the refusal, revocation, or suspension of any license, permission,

or authority conferred, or to be conferred, pursuant to the insurance laws of this state.
N.D. Cent. Code § 26.1-27-04 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-04
26.1-27-04. Waiving of registration requirements
Status: repealed

26.1-27-04. Waiving of registration requirements

Repealed by S.L. 2005, ch. 268, § 3.
N.D. Cent. Code § 26.1-36.5-04 — ND Code / Title 26.1 / Chapter 26.1-36.5 / Section 26.1-36.5-04
26.1-36.5-04. Providing information and paying claims
Status: in_force

26.1-36.5-04. Providing information and paying claims

If a child has health coverage through the insurer of a noncustodial parent, the insurer shall:

1. Provide information to the custodial parent as may be necessary for the child to obtain

benefits through the health coverage;

2. Permit the custodial parent, the provider of health care, with the custodial parent's

approval, or the department of health and human services, as the custodial parent's

assignee, to submit claims for covered services without the approval of the

noncustodial parent; and

3. Make payment on claims submitted in accordance with subsection 2 directly to the

custodial parent, provider, or department, as their interests may appear.
N.D. Cent. Code § 26.1-07-01 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-01
26.1-07-01. Domestic companies - Consolidation - Reinsurance
Status: in_force

26.1-07-01. Domestic companies - Consolidation - Reinsurance

As used in this chapter, "consolidate" includes consolidation and merger and "reinsurance"

includes only those obligations ceded or assumed by an assumption agreement. An

"assumption agreement" is one that transfers all of the direct insurer's obligations under policies

of insurance to another insurer and relieves the transferring insurer of any obligations under the

policies. A domestic insurance company organized on the stock, mutual, stipulated premium, or

assessment plan may not consolidate with any other company, or reinsure its risks or any part

thereof with any other company, or assume or reinsure the whole or any portion of the risks of

any other company, except in the manner provided by this chapter.
N.D. Cent. Code § 26.1-07-07 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-07
26.1-07-07. Expenses paid by petitioner
Status: in_force

26.1-07-07. Expenses paid by petitioner

All actual expenses and costs incident to proceedings under this chapter must be paid by

the company filing the petition. An itemized statement of the expenses and costs must be filed

with the commissioner with a certified copy of the decision of the commissioner.
N.D. Cent. Code § 26.1-06.1-24 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-24
26.1-06.1-24. Collection and list of assets
Status: in_force

26.1-06.1-24. Collection and list of assets

1. As soon as practicable after the liquidation order, but not later than one hundred

twenty days thereafter, unless extended by order of the court, the liquidator shall

prepare in duplicate a list of the insurer's assets. The list must be amended or

supplemented from time to time as the liquidator may determine. One copy must be

filed in the office of the recorder, unless the board of county commissioners designates

a different official, and one copy must be retained for the liquidator's files. All

amendments and supplements must be similarly filed.

2. The liquidator shall reduce the assets to a degree of liquidity that is consistent with the

effective execution of the liquidation.

3. A submission to the court for disbursement of assets in accordance with section

26.1-06.1-33 fulfills the requirements of subsection 1 of this section.
N.D. Cent. Code § 26.1-15.1-14 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-14
26.1-15.1-14. Consolidations and mergers
Status: in_force

26.1-15.1-14. Consolidations and mergers

1. A domestic society may consolidate or merge with any other society by complying with

this section. It shall file with the commissioner:

a. A certified copy of the contract containing in full the terms and conditions of the

consolidation or merger.

b. A sworn statement by the president and secretary or corresponding officers of

each society showing the financial condition of the society on a date fixed by the

commissioner but not earlier than December thirty-first next preceding the date of

the contract.

c. A certificate of such officers, duly verified by their respective oaths, that the

consolidation or merger has been approved by a two-thirds vote of the supreme

governing body of each society conducted at a regular or special meeting of each

or, if the laws of the society permit, by mail.

d. Evidence that at least sixty days prior to the action of the supreme governing

body of each society, the text of the contract has been furnished to all members

of each society either by mail or by publication in full in the official publication of

each society.

2. If the commissioner finds that the contract conforms to this section, that the financial

statements are correct, and that the consolidation of merger is just and equitable to the

members of each society, the commissioner shall approve the contract and issue a

certificate to that effect. Upon approval, the contract is in effect unless any society that

is a party to the contract is incorporated under the laws of any other state or territory. A

consolidation or merger involving a society from another state or territory is not

effective until it has been approved as provided by the laws of the other state or

territory and a certificate of that approval has been filed with the commissioner.

3. Upon the consolidation or merger becoming effective, all the rights, franchises, and

interests of the consolidated or merged societies in and to every species of property

are vested in the resulting society without any other instrument, except that

conveyances of real property may be evidenced by proper deeds, and the title to any

real property vested under the laws of this state in any of the societies consolidated or

merged does not revert nor is it in any way impaired by reason of the consolidation or

merger, but vests absolutely in the society resulting from the consolidation or merger.

4. The affidavit of any officer of the society or of anyone authorized by it to mail any

notice or document, stating that such notice or document has been duly addressed

and mailed, is prima facie evidence that the notice or document has been furnished to

the addressees.
N.D. Cent. Code § 26.1-46-07 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-07
26.1-46-07. Notice and registration requirements of purchasing groups
Status: in_force

26.1-46-07. Notice and registration requirements of purchasing groups

1. A purchasing group which intends to do business in this state shall, prior to doing

business, furnish notice to the commissioner on forms prescribed by the national

association of insurance commissioners which must do all of the following:

a. Identify the state in which the group is domiciled.

b. Identify all other states in which the group intends to do business.

c. Specify the lines and classifications of liability insurance which the purchasing

group intends to purchase.

d. Identify the insurance company from which the group intends to purchase its

insurance and the domicile of such company.

e. Specify the method by which, and the person or persons, if any, through whom

insurance will be offered to its members whose risks are resident or located in

this state.

f. Identify the principal place of business of the group.

g. Provide such other information as may be required by the commissioner to verify

that the purchasing group is qualified under subsection 10 of section 26.1-46-01.

2. A purchasing group shall, within ten days, notify the commissioner of any changes in

any of the items set forth in subsection 1.

3. The purchasing group shall register with and designate the insurance commissioner as

its agent solely for the purpose of receiving service of legal documents or process,

except that such requirements do not apply in the case of a purchasing group which

only purchases insurance that was authorized under the federal Products Liability Risk

Retention Act of 1981 to which all of the following apply:

a. The group was domiciled before April 1, 1986, and is domiciled on and after

October 27, 1986, in any state of the United States.

b. Before October 27, 1986, the group purchased insurance from an insurance

carrier licensed in any state and since October 27, 1986, the group purchased its

insurance from an insurance carrier licensed in any state.

c. The group was a purchasing group under the requirements of the federal Product

Liability Risk Retention Act of 1981 before October 27, 1986.

d. The group does not purchase insurance that was not authorized for purposes of

an exemption under that Act, as in effect before October 27, 1986.

e. Each purchasing group that is required to give notice pursuant to subsection 1

shall also furnish such information as may be required by the commissioner to

verify that the entity qualifies as a purchasing group, determine where the

purchasing group is located, and determine appropriate tax treatment.

f. Any purchasing group which was doing business in this state prior to the

enactment of this chapter shall, within thirty days after August 1, 1993, furnish

notice to the commissioner pursuant to the provisions of subsection 1 and furnish

such information as may be required pursuant to subsections 2 and 3.
N.D. Cent. Code § 26.1-19-13 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-13
26.1-19-13. Reports to the commissioner
Status: in_force

26.1-19-13. Reports to the commissioner

Every prepaid legal services organization annually, on or before March first, shall file a

report with the commissioner, verified by an appropriate official of the organization, showing its

financial condition on the last day of the preceding calendar or fiscal year. The report must

include:

1. A financial statement of the organization, including its balance sheet and statement of

income and expenditures for the preceding year prepared by an independent certified

public accountant.

2. Any changes in the information submitted initially upon application for a certificate of

authority under section 26.1-19-04.

3. Any other information relating to the performance of the organization which the

commissioner may require to carry out the commissioner's duties under this chapter.
N.D. Cent. Code § 26.1-41-07 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-07
26.1-41-07. Persons not entitled to benefits
Status: in_force

26.1-41-07. Persons not entitled to benefits

Basic or optional excess no-fault benefits are not payable to or on behalf of any person who

is injured while:

1. Occupying any motor vehicle without the expressed or implied consent of the owner or

while not in lawful possession of the motor vehicle.

2. Occupying a motor vehicle owned by such person which is not insured for the benefits

required by this chapter unless uninsured solely because the insurance company of

the owner has not filed a form pursuant to subsection 2 of section 26.1-41-05 to

provide the basic no-fault benefits required by this chapter.

3. During a racing or speed contest, or in practicing or preparing for a racing or speed

contest.

4. Intentionally causing or attempting to cause injury to oneself or another person.
N.D. Cent. Code § 26.1-47-03 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-03
26.1-47-03. Health benefits plans
Status: in_force

26.1-47-03. Health benefits plans

1. Health care insurers may issue policies or subscriber agreements which provide for

incentives for covered persons to use the health care services of preferred providers.

These policies or subscriber agreements must contain all of the following provisions:

a. A provision that if a covered person receives emergency care and cannot

reasonably reach a preferred provider that care will be reimbursed as though the

covered person had been treated by a preferred provider.

b. A provision that if covered services are not available through a preferred provider,

reimbursement for those services will be made as though the covered person had

been treated by a preferred provider.

c. A provision which clearly discloses differentials between benefit levels for health

care services of preferred providers and benefit levels for health care services of

other providers.

d. A provision that entitles the covered person, if any health care services covered

under the health benefit plan are not available through a preferred provider within

fifty miles [80.47 kilometers] of the policyholder's legal residence, to the provision

of those covered services under the health benefit plan by a health care provider

not under contract with the health care insurer and located within fifty miles [80.47

kilometers] of the policyholder's legal residence. For the covered person to be

eligible for benefits under this subdivision, the health care provider not under

contract with the health care insurer must furnish the health care services at the

same cost or less that would have been incurred had the covered person secured

the health care services through a preferred provider.

2. If the policy or subscriber agreement provides differences in benefit levels payable to

preferred providers compared to other providers, the differences may not unfairly deny

payment for covered services and may be no greater than necessary to provide a

reasonable incentive for covered persons to use the preferred provider.
N.D. Cent. Code § 26.1-22-16 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-16
26.1-22-16. Unreasonably hazardous risks - Mitigation - Insurance cancellation
Status: in_force

26.1-22-16. Unreasonably hazardous risks - Mitigation - Insurance cancellation

If the office finds any risk is unreasonably hazardous, the office may require the state

agency, political subdivision, or winter show having control of the risk to mitigate or remove the

extra hazard. If the state agency, political subdivision, or winter show fails to mitigate or remove

the extra hazard within six months after notification from the office, the office may cancel the

insurance on the renewal upon thirty days' notice. A cancellation may not be made by the office

for property under the industrial commission's custody without the approval of the industrial

commission. If a disagreement or dispute arises under this section, the office and the state

agency, political subdivision, or winter show shall settle the disagreement or dispute under

section 26.1-22-11.
N.D. Cent. Code § 26.1-34.2-01 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-01
26.1-34.2-01. Exemptions
Status: in_force

26.1-34.2-01. Exemptions

Unless otherwise specifically included, this chapter does not apply to recommendations

involving:

1. Direct response solicitations if there is no recommendation based on information

collected from the consumer pursuant to this chapter; and

2. Contracts used to fund:

a. An employee pension or welfare benefit plan that is covered by the Employee

Retirement and Income Security Act;

b. A plan described by section 401(a), 401(k), 403(b), 408(k), or 408(p) of the

Internal Revenue Code, as amended, if established or maintained by an

employer;

c. A government or church plan defined in section 414 of the Internal Revenue

Code, a government or church welfare benefit plan, or a deferred compensation

plan of a state or local government or tax-exempt organization under section 457

of the Internal Revenue Code;

d. A nonqualified deferred compensation arrangement established or maintained by

an employer or plan sponsor;

e. Settlements of or assumptions of liabilities associated with personal injury

litigation or a dispute or claim resolution process; or

f. Formal prepaid funeral contracts.
N.D. Cent. Code § 26.1-06.1-39 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-39
26.1-06.1-39. Claims of surety
Status: in_force

26.1-06.1-39. Claims of surety

Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the

undertaking of another person, fails to prove and file that claim, the other person may do so in

the creditor's name, and must be subrogated to the rights of the creditor, whether the claim has

been filed by the creditor or by the other person in the creditor's name, to the extent that the

other person discharges the undertaking. In the absence of an agreement with the creditor to

the contrary, the other person is not entitled to any distribution; however, until the amount paid

to the creditor on the undertaking plus the distributions paid on the claim from the insurer's

estate to the creditor equals the amount of the entire claim of the creditor. Any excess received

by the creditor must be held by the creditor in trust for such other person. The term "other

person" as used in this section is not intended to apply to a guaranty association or foreign

guaranty association.
N.D. Cent. Code § 26.1-36-43 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-43
26.1-36-43. Uniform prescription drug information card
Status: in_force

26.1-36-43. Uniform prescription drug information card

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

organization that provides coverage for prescription drugs and that issues a card or

other technology for prescription drug claims processing and an administrator of such

coverage, including a third-party administrator for a self-insurance plan, a pharmacy

benefits manager, and a state-administered plan may not deliver, issue, execute, or

renew any health insurance policy, health service contract, or evidence of coverage on

an individual, group, blanket, franchise, or association basis unless the insured is also

issued a uniform card or other technology containing uniform prescription drug

information as provided under this section.

2. The uniform prescription drug information card or other technology must be in the

format approved by the national council for prescription drug programs and must

include all of the fields the issuer determines necessary to submit a claim and all the

fields necessary to conform to the most recent pharmacy information card or

technology implementation guide produced by the national council for prescription

drug programs, or must include all the fields necessary to conform to a national format

acceptable to the commissioner. All information the issuer determines necessary for

claims submission of prescription drug benefits, exclusive of information provided on

the prescription as required by law or rule, must be included on the card or other

technology in a clear, readable, and understandable manner. All information on the

card or other technology which is required under this section and which is not specified

by the national council for prescription drug programs must be formatted and arranged

in a manner that corresponds in content and format acceptable to the commissioner.

All information on the card must be formatted and arranged in a manner that

corresponds in content and format to the current content and format required by the

issuer to process the claim. If an issuer requires a conditional or situation field as

defined by the national council for prescription drug programs, the field must conform

to the pharmacy information card or technology implementation guide produced by the

national council for prescription drug programs or conform to the national format

acceptable to the commissioner.

3. An issuer shall issue a new uniform prescription drug information card or other

technology upon enrollment and reissue upon any change in the cardholder's

coverage which impacts data in content or format as contained on the card or which

affects the data content or format required to be on the card or other technology as

required by this section. Newly issued cards or other technology must be updated with

the latest coverage information and must conform to the national council for

prescription drug programs standards and to the implementation guide or must

conform to the format specified by the commissioner. However, the issuer may issue to

the insured stickers or other methodologies to temporarily update cards as may be

acceptable to the commissioner.

4. The card or other technology may be used for any health insurance coverage. This

section does not require any person issuing the card or other technology to issue a

separate card for prescription coverage, provided the card or other technology can

accommodate the information necessary to process the claim as required by this

section.
N.D. Cent. Code § 26.1-33-23 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-23
26.1-33-23. Calculation of adjusted premiums - Industrial policies
Status: in_force

26.1-33-23. Calculation of adjusted premiums - Industrial policies

This section does not apply to industrial policies issued on or after the operative date of

section 26.1-33-24. In the case of industrial policies issued on or after the operative date of this

section, all adjusted premiums and present values referred to in sections 26.1-33-18 through

26.1-33-28 must be calculated on the basis of the commissioners 1961 standard industrial

mortality table and the rate of interest specified in the policy for calculating cash surrender

values and paid-up nonforfeiture benefits, provided that such rate of interest may not exceed

three and one-half percent per annum except that a rate of interest not exceeding five and

one-half percent per year may be used for policies issued after June 30, 1977, except that for

any single premium whole life or endowment insurance policy a rate of interest not exceeding

six and one-half percent per year may be used. In calculating the present value of any paid-up

term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit,

the rates of mortality assumed may be not more than those shown in the commissioners 1961

industrial extended term insurance table. For insurance issued on a substandard basis, the

calculations of any such adjusted premiums and present values may be based on such other

table of mortality as may be specified by the insurer and approved by the commissioner. Upon

the operative date of this section, any insurer may file with the commissioner a written notice of

its election to comply with the provisions of this section after a specified date before January 1,

1968. After the filing of such notice, upon the specified date, which must be the operative date of

this section for that insurer, this section must become operative with respect to the industrial

policies issued after that date by the insurer. If an insurer makes no election, the operative date

of this section for the insurer is January 1, 1968.
N.D. Cent. Code § 26.1-49-07 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-07
26.1-49-07. State and federal governmental participation
Status: in_force

26.1-49-07. State and federal governmental participation

The state or federal government, or any entity or political subdivision of the state or federal

government, may be a member of a health provider cooperative. Any state or federal

governmental hospital may be a member of a health provider cooperative. With respect to

federal governmental participation:

1. A health provider cooperative may limit its enrollment to those persons entitled to care

under the federal program responsible for the health provider cooperative.

2. A health provider cooperative may request that the commissioner waive the eligibility

requirements for participation that are contrary to federal law or regulations.

3. The commissioner shall consult with federal officials to develop procedures to allow a

health provider cooperative to use the federal government as a guaranteeing

organization.

4. In developing and implementing initiatives to expand access to health care, the

commissioner must recognize the unique problems of veterans and consider methods

to reach underserved portions of the veteran population.
N.D. Cent. Code § 26.1-26.5-06 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-06
26.1-26.5-06. Administrative penalties and actions by the commissioner
Status: in_force

26.1-26.5-06. Administrative penalties and actions by the commissioner

1. In addition to any other remedies provided herein, whenever it appears to the

commissioner that a person has committed or is committing an act that could be

determined to be a violation, the commissioner may institute a proceeding under

chapter 28-32. After the hearing, the commissioner may order any or all of the

following:

a. That the person permanently cease and desist from committing the acts found to

be in violation of this chapter.

b. Payment of a penalty of not more than ten thousand dollars for each and every

act or violation.

c. That the controlling insurance broker cease placing business with the controlled

insurer.

2. If it is found, after hearing, that the controlling broker or any other person has not

materially complied with this chapter and that the controlled insurer or any policyholder

thereof has suffered any loss or damage, the commissioner may maintain a civil action

or intervene in an action brought by or on behalf of the insurer or policyholder for

recovery of compensatory damages for the benefit of the insurer or policyholder or

other appropriate relief.

3. If an order for liquidation or rehabilitation of the controlled insurer has been entered

pursuant to chapter 26.1-06.1, and the receiver appointed under that order believes

that the controlling insurance broker or any other person has not materially complied

with this chapter, or any rule or order adopted hereunder, and the insurer suffered any

loss or damage therefrom, the receiver may maintain a civil action for recovery of

damages or other appropriate sanctions for the benefit of the insurer.

4. Nothing contained in this section affects the right of the commissioner to impose any

other penalties provided for in the insurance law.

5. Nothing contained in this section is intended to or in any manner alters or affects the

rights of policyholders, claimants, creditors, or other third parties.
N.D. Cent. Code § 26.1-36-09 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09
26.1-36-09. Group health policy and health service contract mental disorder coverage
Status: in_force

26.1-36-09. Group health policy and health service contract mental disorder coverage

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

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

health service contract on a group or blanket or franchise or association basis unless

the policy or contract provides benefits, of the same type offered under the policy or

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

or contract, for the diagnosis, evaluation, and treatment of mental disorder and other

related illness, which benefits meet or exceed the benefits provided in subsection 2.

2. a. The benefits must be provided for each of the following services: inpatient

treatment, treatment by partial hospitalization, residential treatment, and

outpatient treatment.

b. In the case of benefits provided for inpatient treatment, the benefits must be

provided for a minimum of forty-five days of services covered under this section

and section 26.1-36-08 in any calendar year if provided by a hospital as defined

under section 52-01-01 and rules of the department of health and human services

pursuant thereto offering treatment for the prevention or cure of mental disorder

or other related illness. An insurance provider may require an individualized

treatment plan from the inpatient treatment service provider which indicates that

the course of treatment is the most appropriate and least restrictive form of

treatment available in the community.

c. In the case of benefits provided for partial hospitalization, the benefits must be

provided for a minimum of one hundred twenty days of services covered under

this section and section 26.1-36-08 in any calendar year. Partial hospitalization

must be provided by a hospital as defined under section 52-01-01 and rules of

the department of health and human services pursuant thereto or by a state-

operated behavioral health clinic licensed under section 50-06-05.2, offering

treatment for the prevention or cure of mental disorder or other related illness. For

services provided in state-operated behavioral health clinics, charges must be

reasonably similar to the charges for care provided by hospitals as defined in this

subsection.

d. In the case of benefits provided for residential treatment, the benefits must be

provided for a minimum of one hundred twenty days of services covered under

this section in any calendar year. Residential treatment services must be provided

by a hospital as defined under section 52-01-01 and rules of the department of

health and human services; by a state-operated behavioral health clinic licensed

under section 50-06-05.2 offering treatment for the prevention or cure of mental

disorder or other related illness; or by a residential treatment program. For

services provided in a state-operated behavioral health clinic, charges must be

reasonably similar to the charges for care provided by a hospital as defined in this

subsection.

e. Any individual receiving residential treatment services who requires residential

treatment service beyond the minimum of one hundred twenty days may trade

unused inpatient treatment benefits provided for under subdivision b. 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, however, that no more than twenty-three days of

the inpatient treatment benefits required by this section may be traded for

residential treatment services.

f. (1) In the case of benefits provided for outpatient treatment, the benefits must

be provided for a minimum of thirty hours for services covered under this

section in any calendar year if the treatment services are provided within the

scope of licensure by a nurse who holds advanced licensure with a scope of

practice within mental health or if the diagnosis, evaluation, and treatment

services are provided within the scope of licensure by a licensed physician,

a licensed psychologist who is eligible for listing on the national register of

health service providers in psychology, a licensed professional clinical

counselor who is qualified in the clinical mental health counseling specialty

in this state, or a licensed independent clinical social worker.

(2) A person who is qualified for third-party payment by the board of social work

examiners on August 1, 1997, is exempt from paragraph 1.

(3) Upon the request of an insurance company, a nonprofit health service

corporation, or a health maintenance organization, the North Dakota board

of social work examiners shall provide to the requesting entity information to

certify that a licensed certified social worker meets the qualifications

required under this section.

(4) The insurance company, nonprofit health service corporation, or health

maintenance organization may not establish a deductible or a copayment for

the first five hours in any calendar year, and may not establish a copayment

greater than twenty percent for the remaining hours. The deductible

limitation of this paragraph does not apply to a high-deductible health plan

used to establish a health savings account pursuant to and as defined in

section 223 of the Internal Revenue Code [26 U.S.C. 223].

(5) If the services are provided by a provider outside a preferred provider

network without a referral from within the network, the insurance company,

nonprofit health service corporation, or health maintenance organization

may establish a copayment greater than twenty percent for only those hours

after the first five hours in any calendar year.

g. "Partial hospitalization" means continuous treatment for at least three hours, but

not more than twelve hours, in any twenty-four-hour period and includes the

medically necessary treatment services provided by licensed professionals under

the supervision of a licensed physician.

h. "Residential treatment" has the same meaning as provided in section 25-03.2-01,

but only applies to individuals under twenty-one years of age.

3. This section does not prevent any insurance company, nonprofit health service

corporation, or health maintenance organization from issuing, delivering, or renewing,

at its option, any policy or contract containing provisions similar to those required by

this section, when the policy or contract is not subject to such provisions.
N.D. Cent. Code § 26.1-31.1-03 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-03
26.1-31.1-03. Required contract provisions - Reinsurance intermediary-brokers
Status: in_force

26.1-31.1-03. Required contract provisions - Reinsurance intermediary-brokers

Transactions between a reinsurance intermediary-broker and the insurer it represents in

such capacity may only be entered into, pursuant to a written authorization, specifying the

responsibilities of each party. The authorization must, at a minimum, contain provisions that:

1. The insurer may terminate the reinsurance intermediary-broker's authority at any time.

2. The reinsurance intermediary-broker will render accounts to the insurer accurately

detailing all material transactions, including information necessary to support all

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

intermediary-broker, and remit all funds due to the insurer within thirty days of receipt.

3. All funds collected for the insurer's account will be held by the reinsurance

intermediary-broker in a fiduciary capacity in a bank which is a qualified United States

financial institution as defined by this chapter.

4. The reinsurance intermediary-broker will comply with section 26.1-31.1-04.

5. The reinsurance intermediary-broker will comply with the written standards established

by the insurer for the cessions or retrocession of all risks.

6. The reinsurance intermediary-broker will disclose to the insurer any relationship with

any reinsurer to which business will be ceded or retroceded.
N.D. Cent. Code § 26.1-12-04 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-04
26.1-12-04. Articles of incorporation - Filing - Issuance of certificate
Status: in_force

26.1-12-04. Articles of incorporation - Filing - Issuance of certificate

The articles of incorporation or amendments thereto of a mutual insurance company

organized under this chapter must be submitted to the commissioner. If the commissioner

determines the articles or amendments comply with this chapter, the commissioner shall

approve the same. The articles or amendments must be filed in the office of the secretary of

state and a certified copy must be filed with the commissioner. The commissioner shall deliver a

certificate to the company indicating that it has complied with this chapter.
N.D. Cent. Code § 26.1-02-24.3 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-24.3
26.1-02-24.3. Insurance counseling programs - Volunteers - Immunity from liability
Status: in_force

26.1-02-24.3. Insurance counseling programs - Volunteers - Immunity from liability

A person who, on a volunteer basis, provides services or performs duties on behalf of the

insurance commissioner for an insurance counseling program is immune from civil liability for

any act or omission resulting in damage or injury if at the time of the act or omission the person

who caused the damage or injury was acting in good faith, in the exercise of reasonable and

ordinary care, and in the scope of that person's duties as a volunteer and the act or omission

did not constitute willful misconduct or gross negligence. This section does not grant immunity

to a person causing damage as a result of the negligent operation of a motor vehicle.
N.D. Cent. Code § 26.1-39-17 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-17
26.1-39-17. Prohibited reasons for declination or termination of property and casualty policies
Status: in_force

26.1-39-17. Prohibited reasons for declination or termination of property and casualty

policies.

The declination or termination of a property insurance policy subject to sections 26.1-39-10

through 26.1-39-21 by an insurer or insurance producer is prohibited if the declination or

termination is based upon any of the following reasons:

1. The race, religion, nationality, ethnic group, age, sex, or marital status of the applicant

or named insured.

2. The lawful occupation or profession of the applicant or named insured, except that this

provision does not apply to an insurer that limits its market to one lawful occupation or

profession or to several related lawful occupations or professions.

3. The age or location of the residence of the applicant or named insured unless the

decision is for a business purpose that is not a mere pretext for unfair discrimination.

4. The fact that another insurer previously declined to insure the applicant or terminated

an existing policy in which the applicant was the named insured.

5. The fact that the applicant or named insured previously obtained insurance coverage

through a residual market insurance mechanism.
N.D. Cent. Code § 26.1-36-03 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-03
26.1-36-03. Form of policy
Status: in_force

26.1-36-03. Form of policy

1. No accident and health insurance policy may be delivered or issued for delivery to any

person in this state unless:

a. The entire money and other considerations for the policy are expressed in the

policy.

b. The time at which the insurance takes effect and terminates is expressed in the

policy.

c. The policy purports to insure only one person, except that a policy may insure,

originally or by subsequent amendment, upon the application of an adult member

of a family who is deemed the policyholder, any two or more eligible members of

that family, including spouse, dependent children or any children under a

specified age which may not exceed twenty-two years, and any other person

dependent upon the policyholder.

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

prominence to any portion of the text, and unless every printed portion of the text

of the policy and of any endorsements or attached papers is plainly printed in

lightfaced type of a style in general use, the size of which is uniform and not less

than ten point with a lowercase unspaced alphabet length not less than one

hundred twenty point. The "text" must include all printed matter except the name

and address of the insurer, name or title of the policy, the brief description, if any,

and captions and subcaptions.

e. The exceptions and reductions of indemnity are set forth in the policy and, except

those which are set forth in section 26.1-36-04, are printed at the insurer's option,

either included with the benefit provisions to which they apply, or under an

appropriate caption such as "EXCEPTIONS" or "EXCEPTIONS AND

REDUCTIONS". If an exception or reduction specifically applies only to a

particular benefit of the policy, a statement of the exception or reduction must be

included with the benefit provision to which it applies.

f. Each form, including riders and endorsements, must be identified by a form

number in the lower left-hand corner of the first page thereof.

g. It contains no provision purporting to make any portion of the charter, rules,

constitution, or bylaws of the insurer a part of the policy unless the portion is set

forth in full in the policy, except in the case of the incorporation of, or reference to,

a statement of rates or classification of risks, or short-rate table filed with the

commissioner.

2. If any policy is issued by an insurer domiciled in this state for delivery to a person

residing in another state, and if the insurance department of that state has advised the

commissioner that the policy is not subject to approval or disapproval by that official,

the commissioner may by ruling require that the policy meet the standards set forth in

subsection 1 and in section 26.1-36-04.
N.D. Cent. Code § 26.1-17-18 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-18
26.1-17-18. Health service corporation contracts - Approval by commissioner
Status: in_force

26.1-17-18. Health service corporation contracts - Approval by commissioner

Contracts between a health service corporation and health service providers at all times are

subject to the approval of the commissioner. Contracts between health service corporations and

subscribers for health service are subject to the applicable provisions of chapter 26.1-36 and

are subject to the filing and approval requirements of chapter 26.1-30.
N.D. Cent. Code § 26.1-36.4-03.1 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-03.1
26.1-36.4-03.1. Additional limits on pre-existing condition exclusions
Status: in_force

26.1-36.4-03.1. Additional limits on pre-existing condition exclusions

A group policy may not impose a pre-existing condition exclusion that:

1. Relates to pregnancy as a pre-existing condition.

2. Treats genetic information as a pre-existing condition in the absence of a diagnosis of

a condition related to such information.
N.D. Cent. Code § 26.1-10.2-05 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-05
26.1-10.2-05. Exemption
Status: in_force

26.1-10.2-05. Exemption

1. An insurer is exempt from the requirements of this chapter if:

a. The insurer has annual direct written and unaffiliated assumed premium,

including international direct and assumed premium, but excluding premiums

reinsured with the federal crop insurance corporation and federal flood program,

less than five hundred million dollars; and

b. The insurance group of which the insurer is a member has annual direct written

and unaffiliated assumed premium, including international direct and assumed

premium, but excluding premiums reinsured with the federal crop insurance

corporation and federal flood program, less than one billion dollars.

2. If an insurer qualifies for exemption under subdivision a of subsection 1, but the

insurance group of which the insurer is a member does not qualify for exemption under

subdivision b of subsection 1, then the own risk and solvency assessment summary

report that may be required under section 26.1-10.2-04 must include every insurer

within the insurance group. This requirement may be satisfied by the submission of

more than one own risk and solvency assessment summary report for any

combination of insurers provided any combination of reports includes every insurer

within the insurance group.

3. If an insurer does not qualify for exemption under subdivision a of subsection 1, but

the insurance group of which the insurer is a member qualifies for exemption under

subdivision b of subsection 1, then the only own risk and solvency assessment

summary report that may be required under section 26.1-10.2-04 must be the report

applicable to that insurer.

4. An insurer that does not qualify for exemption under subsection 1 may apply to the

commissioner for a waiver from the requirements of this chapter based upon unique

circumstances. In deciding whether to grant the request for waiver, the commissioner

may consider the type and volume of business written, the ownership and

organizational structure of the insurer, and any other factor the commissioner

considers relevant to the insurer or insurance group of which the insurer is a member.

If the insurer is part of an insurance group with insurers domiciled in more than one

state, the commissioner shall coordinate with the lead state commissioner and with the

other domiciliary commissioners in considering whether to grant the insurer's request

for a waiver.

5. Notwithstanding the exemptions stated in this section:

a. The commissioner may require an insurer maintain a risk management

framework, conduct an own risk and solvency assessment, and file an own risk

and solvency assessment summary report based on unique circumstances,

including the type and volume of business written, the ownership and

organizational structure of the insurer, a federal agency request, or an

international supervisor request.

b. The commissioner may require an insurer maintain a risk management

framework, conduct an own risk and solvency assessment, and file an own risk

and solvency assessment summary report if the insurer has risk-based capital for

company action level event as set forth in section 26.1-03.1-03; meets one or

more of the standards of an insurer deemed to be in hazardous financial

condition as defined in section 26.1-06.1-11; or otherwise exhibits qualities of a

troubled insurer as determined by the commissioner.

6. If an insurer that qualifies for an exemption under subsection 1 subsequently no longer

qualifies for that exemption due to changes in premium as reflected in the insurer's

most recent annual statement or in the most recent annual statements of the insurers

within the insurance group of which the insurer is a member, the insurer has one year

following the year the threshold is exceeded to comply with the requirements of this

chapter.
N.D. Cent. Code § 26.1-03-02 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-02
26.1-03-02. Valuation of securities held by company
Status: repealed

26.1-03-02. Valuation of securities held by company

Repealed by S.L. 1993, ch. 292, § 49.
N.D. Cent. Code § 26.1-39-26 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-26
26.1-39-26. Electronic notices and documents
Status: repealed

26.1-39-26. Electronic notices and documents

Repealed by S.L. 2019, ch. 232, § 3.
N.D. Cent. Code § 26.1-38.1-17 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-17
26.1-38.1-17. Prospective application
Status: repealed

26.1-38.1-17. Prospective application

Repealed by S.L. 2019, ch. 244, § 14.
N.D. Cent. Code § 26.1-18.1-22 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-22
26.1-18.1-22. Rulemaking authority
Status: in_force

26.1-18.1-22. Rulemaking authority

The commissioner may adopt reasonable rules necessary and proper to carry out the

provisions of this chapter.
N.D. Cent. Code § 26.1-13-27 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-27
26.1-13-27. Collection of assessments - Suits against directors - Suits against company to recover losses
Status: repealed

26.1-13-27. Collection of assessments - Suits against directors - Suits against

company to recover losses.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-54-02 — ND Code / Title 26.1 / Chapter 26.1-54 / Section 26.1-54-02
26.1-54-02. Rules
Status: in_force

26.1-54-02. Rules

The commissioner and the department of health and human services may adopt rules

necessary or desirable to carry out the provisions of this chapter.
N.D. Cent. Code § 26.1-22-03 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-03
26.1-22-03. Employment of assistants - Expenditures from fund - Continuing appropriation
Status: repealed

26.1-22-03. Employment of assistants - Expenditures from fund - Continuing

appropriation.

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-36.4-05 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-05
26.1-36.4-05. Renewability of health insurance coverage - Discrimination prohibited
Status: in_force

26.1-36.4-05. Renewability of health insurance coverage - Discrimination prohibited

1. An insurer issuing policies or certificates under this chapter shall provide for the

renewability or continuability of coverage unless:

a. The individual or group has failed to pay premiums or contributions in accordance

with the terms of the health benefit plan or the insurer has not received timely

premium payments.

b. The individual or group 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 insurer's minimum group participation requirements.

d. Noncompliance with the insurer's employer group contribution requirements.

e. A decision by the insurer to discontinue offering a particular type of health

insurance coverage in the group or individual market. A type of group health

benefit plan or individual policy may be discontinued by the insurer in that market

only if the insurer:

(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

individuals, employers, participants, beneficiaries, and to the commissioner

in each state in which an affected insured is known to reside at least ninety

days prior to the nonrenewal of any health benefit plans by the insurer.

Notice to the commissioner under this subdivision must be provided at least

three working days prior to the notice to the affected individuals, employers,

participants, and beneficiaries;

(3) Offers to each affected group or individual the option to purchase all other

health benefit plans or individual coverage currently being offered by the

insurer in that market; and

(4) In exercising the option to discontinue the particular type of group health

benefit plan or individual coverage and in offering the option of coverage

under paragraph 3, the insurer acts uniformly without regard to claims

experience or any health status-related factor relating to any affected

individuals, participants, or beneficiaries covered or new individuals,

participants, or beneficiaries who may become eligible for such coverage.

f. A decision by the insurer to discontinue offering and to nonrenew all its health

benefit plans or individual coverage delivered or issued for delivery to employers

or individuals in this state. In such a case, the insurer shall:

(1) Provide 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

individuals, employers, participants, and beneficiaries, and to the

commissioner in each state in which an affected insured is known to reside

at least one hundred eighty days prior to the nonrenewal of any health

benefit plans by the insurer. Notice to the commissioner under this

subdivision must be provided at least three working days prior to the notice

to the affected individuals, employers, participants, and beneficiaries; and

(3) Discontinue all health insurance issued or delivered for issuance in the

state's group or individual market and not renew such health coverage in

that market.

g. In the case of health benefit plans that are made available in the group or

individual market only through one or more associations, the membership of an

employer or individual in the association, on the basis of which the coverage is

provided, ceases, but only if the coverage is terminated under this paragraph

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

insurer's ability to meet its contractual obligations. In this case the commissioner

shall assist affected insureds in finding replacement coverage.

2. An insurer that elects not to renew a health benefit plan under subdivision f of

subsection 1 may not write new business in the applicable market in this state for a

period of five years from the date of notice to the commissioner.

3. In the case of an insurer doing business in one established geographic service area of

the state, this section only applies to the insurer's operations in that service area.

4. An insurer offering coverage 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 insurer 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 an insurer that no longer has any enrollee in connection with the plan who

lives, resides, or works in the service area of the insurer, or the area for which the

insurer is authorized to do business.

5. At the time of coverage renewal, an insurer may modify the health insurance coverage

for a product offered to a group or individual, if the modification is reasonable,

consistent with state law, and effective on a uniform basis. 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 employers

and participants and beneficiaries.

b. Provide notice of the decision to modify health coverage to all affected

employers, participants, and beneficiaries and the commissioner sixty days prior

to the modification of health coverage by the carrier.
N.D. Cent. Code § 26.1-31.1-10 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-10
26.1-31.1-10. Penalties and liabilities
Status: in_force

26.1-31.1-10. Penalties and liabilities

1. If the commissioner determines that the reinsurance intermediary or any other person

has not materially complied with this chapter, or any rule or order adopted under this

chapter, after notice and opportunity to be heard, the commissioner may order:

a. For each separate violation, a penalty in an amount not exceeding five thousand

dollars;

b. Revocation or suspension of the reinsurance intermediary's license; and

c. If it was found that because of the material noncompliance the insurer or

reinsurer has suffered any loss or damage, the commissioner may maintain a civil

action brought by or on behalf of the reinsurer or insurer and its policyholders and

creditors for recovery of compensatory damages for the benefit of the reinsurer or

insurer and its policyholders and creditors or seek other appropriate relief.

2. If an order of rehabilitation or liquidation of the insurer has been entered pursuant to

chapter 26.1-06.1, and the receiver appointed under that order determines that the

reinsurance intermediary or any other person has not materially complied with this

chapter, or any rule or order adopted under this chapter, and the insurer suffered any

loss or damage as a result of the material noncompliance, the receiver may maintain a

civil action for recovery of damages or other appropriate sanctions for the benefit of

the insurer.

3. Nothing contained in this section affects the right of the commissioner to impose any

other penalties provided for in the insurance law.

4. Nothing contained in this chapter is intended to or may in any manner limit or restrict

the rights of policyholders, claimants, creditors, or other third parties.

5. The decision, determination, or order of the commissioner pursuant to subsection 1 is

subject to judicial review pursuant to chapter 28-32.
N.D. Cent. Code § 26.1-39-22 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-22
26.1-39-22. Termination of property and casualty insurance agency contracts
Status: in_force

26.1-39-22. Termination of property and casualty insurance agency contracts

Any insurer authorized to transact property or casualty business in this state, upon

termination of an insurance producer's appointment by the insurer, shall permit the renewal and

endorsement of all insurance contracts written by the insurance producer for a period of one

year from the date of the termination, as determined by the individual underwriting requirements

of the insurer. If any contract does not meet the underwriting requirements, the insurer shall give

the insurance producer sixty days' notice of its intention not to renew the contract. This section

does not apply if the contract is terminated because of the insurance producer's failure, after

receiving a written demand, to pay over moneys due the insurer.
N.D. Cent. Code § 26.1-33.4-09 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-09
26.1-33.4-09. Disclosure to insurer
Status: in_force

26.1-33.4-09. Disclosure to insurer

Without limiting the ability of an insurer from assessing the insurability of a policy applicant

and determining whether to issue the policy, and in addition to other questions an insurance

carrier may lawfully pose to a life insurance applicant, insurance carriers may inquire in the

application for insurance whether the proposed owner intends to pay premiums with the

assistance of financing from a lender that will use the policy as collateral to support the

financing.

1. If, as described in subsection 11 of section 26.1-33.4-01, the loan provides funds that

can be used for a purpose other than paying for the premiums, costs, and expenses

associated with obtaining and maintaining the life insurance policy and loan, the

application must be rejected as a violation of the prohibited practices in section

26.1-33.4-12.

2. If the financing does not violate section 26.1-33.4-12 in this manner, the insurance

carrier:

a. May make disclosures, such as the following, to the applicant and the insured,

either on the application or an amendment to the application to be completed no

later than the delivery of the policy: "If you have entered a loan arrangement

where the policy is used as collateral, and the policy does change ownership at

some point in the future in satisfaction of the loan, the following may be true:

(1) A change of ownership could lead to a stranger owning an interest in the

insured's life;

(2) A change of ownership could in the future limit your ability to purchase future

insurance on the insured's life because there is a limit to how much

coverage insurers will issue on one life;

(3) Should there be a change of ownership and you wish to obtain more

insurance coverage on the insured's life in the future, the insured's higher

issue age, a change in health status, and other factors may reduce the

ability to obtain coverage and may result in significantly higher premiums;

and

(4) You should consult a professional adviser, since a change in ownership in

satisfaction of the loan may result in tax consequences to the owner,

depending on the structure of the loan;" and

b. May require certifications, such as the following, from the applicant or the insured

or both:

I have not entered into any agreement or arrangement providing for the

future sale of this life insurance policy;

My loan arrangement for this policy provides funds sufficient to pay for

some or all of the premiums, costs, and expenses associated with obtaining

and maintaining my life insurance policy, but I have not entered into any

agreement by which I am to receive consideration in exchange for procuring

this policy; and

The borrower has an insurable interest in the insured.
N.D. Cent. Code § 26.1-36-29 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-29
26.1-36-29. Coordination of benefits in individual and group accident and health policies - Limitations
Status: in_force

26.1-36-29. Coordination of benefits in individual and group accident and health

policies - Limitations.

An insurer or health service corporation may not issue or renew any individual or group

accident and health insurance policy that excludes or reduces the benefits payable or services

to be rendered to or on behalf of any insured because benefits have been paid or are also

payable under any individually underwritten and individually issued contract or plan of insurance

which provides exclusively for specific disease, hospital indemnity, and other limited benefits,

irrespective of the mode or channel of premium payment, with or without payroll deduction, to

the insurer and regardless of any reduction in the premium by virtue of the insured's

membership in any organization or of the insured's status as an employee. This section does

not affect the practice of coordination of benefits as provided in section 26.1-36-10.
N.D. Cent. Code § 26.1-03-05 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-05
26.1-03-05. Surplus of life insurance company doing business on mutual plan apportioned annually
Status: in_force

26.1-03-05. Surplus of life insurance company doing business on mutual plan

apportioned annually.

Every life insurance company conducted on the mutual plan, or upon any other plan in

which the policyholders are entitled to share in the profits or surplus of the company, doing

business in this state shall make an annual apportionment and accounting of divisible surplus to

each policyholder beginning not later than the end of the third policy year. Each policyholder is

entitled to, and must be credited with or paid in the manner provided in this chapter, the portion

of the entire divisible surplus as has been contributed thereto by the policyholder's policy. Every

life insurance company, upon policies other than industrial policies, issued before July 1, 1907,

under the conditions of which the distribution of surplus was deferred to a fixed or specified time

and made contingent upon the policy being in force and the insured living at that time, shall

ascertain annually the amount of surplus to which all of the policies as a separate class are

entitled, and shall apportion to the policies as a class the amount of surplus so ascertained and

must carry the amount of the apportioned surplus, and the actual interest earnings and

accretions of the fund, as a distinct and separate liability to the class of policies on and for which

the same was accumulated. Neither the company nor any of its officers may use any part of the

apportioned surplus for any purpose whatsoever other than for the express purpose for which

the apportioned surplus was accumulated.
N.D. Cent. Code § 26.1-17.1-14 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-14
26.1-17.1-14. Investments
Status: in_force

26.1-17.1-14. Investments

The funds of a prepaid limited health service organization may be invested only in

accordance with the laws and rules applicable to insurance companies.
N.D. Cent. Code § 26.1-36-02.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-02.2
26.1-36-02.2. Individual health plans - Open enrollment periods - Rules
Status: in_force

26.1-36-02.2. Individual health plans - Open enrollment periods - Rules

1. As used in this section:

a. "Adverse selection" occurs when an individual who experiences greater than

average health risks seeks to purchase an individual health plan.

b. "Annual open enrollment period" means a period each year during which an

individual may enroll or change coverage in an individual health plan that is not

sold through a health benefit exchange.

c. "Health benefit exchange" means a governmental agency or nonprofit entity that:

(1) Meets the applicable requirements of the federal Patient Protection and

Affordable Care Act [Pub. L. 111-148] and the provisions of the Health Care

and Education Reconciliation Act of 2010 [Pub. L. 111-152]; and

(2) Makes qualified health plans available to qualified individuals and qualified

employers through a state health benefit exchange, regional health benefit

exchange, subsidiary health benefit exchange, or a federally facilitated

health benefit exchange.

d. "Individual health plan" means health insurance coverage offered to individuals,

other than in connection with a group health plan. The term does not include

limited scope dental or vision benefits, coverage only for specified disease or

illness, hospital indemnity or other fixed indemnity insurance, or other similar

limited benefit health plans.

e. "Initial enrollment period" means a period during which an individual may enroll in

individual health plan coverage sold outside a health benefit exchange for

coverage during the 2014 benefit year.

f. "Special enrollment period" means a period that is outside of the initial and

annual open enrollment periods, during which an individual or enrollee who

experiences certain qualifying events may enroll in or change enrollment in an

individual health plan not sold through a health benefit exchange.

2. The commissioner may adopt rules reasonably necessary to mitigate adverse

selection or other undesirable market effect among individual health plans sold inside

and among individual health plans sold outside a health benefit exchange. The rules

may contain:

a. Requirements for the initial enrollment period;

b. Requirements for an annual open enrollment period;

c. Requirements for a special enrollment period;

d. Requirements for an individual who purchases individual health plan coverage

during a special enrollment period; and

e. Any other provision reasonably required to mitigate adverse selection or other

undesirable market effect in individual health plans sold inside or outside a health

benefit exchange.
N.D. Cent. Code § 26.1-25.2-01 — ND Code / Title 26.1 / Chapter 26.1-25.2 / Section 26.1-25.2-01
26.1-25.2-01. Scope
Status: in_force

26.1-25.2-01. Scope

This chapter applies to only personal insurance.
N.D. Cent. Code § 26.1-30.1-08 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-08
26.1-30.1-08. Penalties
Status: in_force

26.1-30.1-08. Penalties

1. A violation of any of the provisions of sections 26.1-30.1-01 through 26.1-30.1-07 must

be deemed an unfair trade practice in the business of insurance and subject the

violator to a penalty as determined by the commissioner not exceeding one thousand

dollars for each and every act or violation. After three violations of any of the

provisions of sections 26.1-30.1-01 through 26.1-30.1-07 within a twelve-month period,

and after a hearing upon fifteen days' notice, the commissioner may revoke the license

to transact business in this state of any insurance organization that committed such

violations.

2. All notices required by this chapter must be made by first-class mail addressed to the

policyholder's last-known address as stated in the policy. Notice by first-class mail is

effective upon deposit in the United States mail. In addition to giving notice to the

policyholder, the insurer shall also give notice to the agent of record, if any, in the

manner specified for the policyholder.
N.D. Cent. Code § 26.1-14-10 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-10
26.1-14-10. Dividends to policyholders
Status: in_force

26.1-14-10. Dividends to policyholders

Every policy issued by the company must include a provision that the company periodically

will ascertain and apportion any divisible surplus under the policy which may accrue on policy

anniversaries or other dividend dates specified in the contract. This provision must provide that

no apportionment or payment of any divisible surplus may take place until the expiration of at

least eight years from the termination of the policy period for which the dividend applies. This

provision also must provide that the dividends may be paid only as directed by the board of

directors from divisible surplus after due consideration of the financial condition and operating

needs of the company.
N.D. Cent. Code § 26.1-10-10.1 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-10.1
26.1-10-10.1. Recovery
Status: in_force

26.1-10-10.1. Recovery

1. If an order for liquidation or rehabilitation of a domestic insurer has been entered, the

receiver appointed under the order may recover on behalf of the insurer:

a. From any parent corporation or holding company or person or affiliate that

otherwise controlled the insurer, the amount of distributions other than

distributions of shares of the same class of stock, paid by the insurer on its capital

stock; or

b. Any payment in the form of a bonus, termination settlement, or extraordinary

lump sum salary adjustment made by the insurer or its subsidiaries to a director,

officer, or employee, if the distribution or payment under this subsection is made

at any time during the one year preceding the petition for liquidation,

conservation, or rehabilitation subject to the limitations of subsections 2, 3, and 4.

2. A distribution may not be recovered if the parent or affiliate shows that, when paid, the

distribution was lawful and reasonable, and that the insurer did not know and could not

reasonably have known that the distribution might adversely affect the ability of the

insurer to fulfill its contractual obligations.

3. Any person that was a parent corporation or holding company or a person that

otherwise controlled the insurer or affiliate at the time the distributions were paid is

liable up to the amount of distributions or payments under subsection 1 the person

received. Any person that otherwise controlled the insurer at the time the distributions

were declared is liable up to the amount of distributions the person would have

received if the person had been paid immediately. If two or more persons are liable

with respect to the same distributions, they are jointly and severally liable.

4. The maximum amount recoverable under this section is the amount needed in excess

of all other available assets of the impaired or insolvent insurer to pay the contractual

obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.

5. To the extent that any person liable under subsection 3 is insolvent or otherwise fails to

pay claims due from it, its parent corporation or holding company or person that

otherwise controlled it at the time the distribution was paid must be jointly and

severally liable for any resulting deficiency in the amount recovered from the parent

corporation or holding company or person that otherwise controlled it.
N.D. Cent. Code § 26.1-26.7-01 — ND Code / Title 26.1 / Chapter 26.1-26.7 / Section 26.1-26.7-01
26.1-26.7-01. Definitions
Status: in_force

26.1-26.7-01. Definitions

For purposes of this chapter:

1. "Business entity" means a corporation, association, partnership, limited liability

company, limited liability partnership, or other legal entity.

2. "Customer" means a person that purchases a portable electronic device or services

related to the use of a portable electronic device.

3. "Enrolled customer" means a customer that elects coverage under a portable

electronics insurance policy issued to a vendor of portable electronic devices.

4. "Location" means any physical location in this state or any website, call center site, or

similar location directed to residents of this state.

5. "Person" means an individual or a business entity.

6. "Portable electronic device":

a. Means personal, self-contained, easily carried by hand, battery-operated

electronic communication, viewing, listening, recording, gaming, computing, or

global positioning devices, including cellular or satellite phones, personal global

positioning satellite units, portable computers, portable audio listening, video

viewing or recording devices, digital cameras, video camcorders, portable gaming

systems, docking stations, and accessories for any of these devices with a retail

value of less than five thousand dollars.

b. Does not include telecommunications switching equipment, transmission wires,

cell site transceiver equipment, or other equipment and systems used by

telecommunications companies to provide telecommunications service to

consumers.

7. "Portable electronics insurance" means insurance providing coverage for the repair or

replacement of portable electronic devices due to one or more of the following causes

of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or

other similar cause of loss. The term includes any agreement whereby a person, in

exchange for consideration paid, agrees to provide for the future repair or replacement

of a portable electronic device. The term does not include:

a. A property service contract as defined under section 9-01-21;

b. A policy of insurance covering a seller's or a manufacturer's obligations under a

warranty; or

c. A homeowner's, renter's, private passenger automobile, commercial multi-peril, or

similar policy.

8. "Portable electronics transaction" means the sale or lease of portable electronic

devices by a vendor to a customer or the sale of a service related to the use of a

portable electronic device by a vendor to a customer.

9. "Vendor" means a person in the business of engaging in portable electronics

transactions, directly or indirectly.
N.D. Cent. Code § 26.1-15.1-05 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-05
26.1-15.1-05. Purposes and owners
Status: in_force

26.1-15.1-05. The institutions may furnish services free or at a reasonable charge. Any

property owned, held, or leased by the society for these purposes must be reported in

every annual statement.

2. No society may own or operate funeral homes or undertaking establishments.
N.D. Cent. Code § 26.1-26-10 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-10
26.1-26-10. Consultant - Exceptions to licensing requirement
Status: in_force

26.1-26-10. Consultant - Exceptions to licensing requirement

A person may not act as an insurance consultant until licensed as such by the

commissioner. However, a license as an insurance consultant is not required of:

1. An attorney licensed to practice law in this state acting in the attorney's professional

capacity.

2. A licensed insurance producer or surplus lines insurance producer.

3. A trust officer of a bank acting in the normal course of the trust officer's employment.

4. An actuary or a certified public accountant who provides information,

recommendations, advice, or services in the actuary's or the certified public

accountant's professional capacity.
N.D. Cent. Code § 26.1-39-02 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-02
26.1-39-02. Rescission of fire contract not permitted if risk not increased
Status: in_force

26.1-39-02. Rescission of fire contract not permitted if risk not increased

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

policy, which does not increase the risk, does not affect a fire insurance contract.
N.D. Cent. Code § 26.1-46-13 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-13
26.1-46-13. Rules and regulations
Status: in_force

26.1-46-13. Rules and regulations

The commissioner may adopt such rules relating to risk retention groups as may be

necessary or desirable to carry out the provisions of the chapter.
N.D. Cent. Code § 26.1-39-05 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-05
26.1-39-05. Face of policy to be paid in case of covered loss
Status: in_force

26.1-39-05. Face of policy to be paid in case of covered loss

1. Whenever any insurance policy is written or renewed to insure any real property in this

state, including structures owned by persons other than the insured, against loss

caused by or resulting from any covered cause of loss and the insured property is

wholly or completely destroyed by any covered cause of loss without fraud on the part

of the insured or the insured's assigns, the amount of the insurance written in the

policy is the true value of the property insured and the true amount of loss and

measure of damages, subject to the following conditions:

a. If the covered loss occurred within sixty days after the policy effective date or

within sixty days after the policy limits were increased by twenty-five percent or

more at the insured's request, the loss payable to the insured for covered loss

incurred during the first sixty days is the lesser of:

(1) The full value of the policy; or

(2) The amount paid in accordance with the policy provisions as if a partial loss

occurred.

b. Subdivision a does not apply to:

(1) Renewal policies with policy limits increases of less than twenty-five

percent;

(2) Policies for which limits have increased twenty-five percent or more due to

the construction of additions; or

(3) Policies for which the increased limits were approved by the insurer before

the loss.

c. Builder risk policies of insurance covering property in the process of being

constructed must be valued and settled according to the actual value of that

portion of construction completed at the time of any covered cause of loss.

d. In case of double insurance, each insurer shall contribute proportionally toward

the loss without regard to the dates of the insurance policies.

2. This section does not apply as to personal property or any interest in the personal

property.

3. This section does not apply to any claim for loss of an appurtenant structure or

separate structure. Any claim for loss of an appurtenant or separate structure must be

settled for actual replacement cost or actual cash value, depending on the policy

provisions applicable to the structure, unless an appurtenant or separate structure is

individually described in the policy and a value is assigned to that specific structure

before the loss.
N.D. Cent. Code § 26.1-14-02 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-02
26.1-14-02. Definitions
Status: in_force

26.1-14-02. Definitions

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

1. "Company" means the North Dakota medical malpractice mutual insurance company.

2. "Physician" means physician and surgeon (M.D.) and osteopathic physician and

surgeon (D.O.).

3. "Practice of medicine" means the practice of medicine, surgery, and obstetrics and has

the same meaning specified in section 43-17-01.
N.D. Cent. Code § 26.1-17-13 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-13
26.1-17-13. Group medical service contracts - Options required
Status: repealed

26.1-17-13. Group medical service contracts - Options required

Repealed by S.L. 1985, ch. 316, § 22.
N.D. Cent. Code § 26.1-29-09.1 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-09.1
26.1-29-09.1. Insurable interest in personal insurance
Status: in_force

26.1-29-09.1. Insurable interest in personal insurance

1. An individual of competent legal capacity may procure or effect an insurance contract

upon that individual's own life or body for the benefit of any person. A person may not

procure or cause to be procured an insurance contract upon the life or body of another

individual unless the benefits under the contract are payable to the individual insured

or that individual's personal representatives, or to a person having, at the time the

contract was made, an insurable interest in the individual insured.

2. If the beneficiary, assignee, or other payee under a contract made in violation of this

section receives from the insurer any benefits from the contract upon the death,

disablement, or injury of the individual insured, the individual insured or that

individual's executor or administrator may maintain an action to recover the benefits

from the person receiving the benefits.

3. "Insurable interest", with reference to personal insurance, includes only the following

interests:

a. In the case of an individual related closely by blood or by law, a substantial

interest engendered by love and affection.

b. In the case of a person other than an individual described in subdivision a, a

lawful and substantial economic interest in having the life, health, or bodily safety

of the individual insured continue, as distinguished from an interest that would

arise only by, or would be enhanced in value by, the death, disablement, or injury

of the individual insured.

c. In the case of an individual party to a contract or option for the purchase or sale

of an interest in a business partnership or firm, of a membership interest in a

limited liability company, or of shares of stock of a closed corporation or of an

interest in the shares, an interest in the life of each individual party to the contract

for the purpose of the contract only, in addition to an insurable interest that may

otherwise exist as to the life of the individual.

d. In the case of a religious, educational, eleemosynary, charitable, or benevolent

organization, a lawful interest in the life of the individual insured if that individual

executed a written consent to the insurance contract.

e. In the case of an employer or the trustee of a trust providing life, health, disability,

retirement, or similar benefits to employees of one or more employers, and acting

in a fiduciary capacity with respect to the employees, retired employees, or the

employees' dependents or beneficiaries, an employer or the trustee of a trust has

an insurable interest in the lives of employees for whom the benefits are to be

provided and the employer or trustee of a trust may purchase, accept, or

otherwise acquire an interest in personal insurance as a beneficiary or owner.

Written consent of the insured individual is required if the personal insurance

purchased names the employer or the trustee of a trust as a beneficiary.

f. In the case of a service recipient or the trustee of a trust providing a nonqualified

deferred compensation plan, as defined by section 409A(d)(1) of the Internal

Revenue Code [26 U.S.C. 409A(d)(a)], to a service provider, an insurable interest

in the life of the service provider for whom the nonqualified deferred

compensation plan is provided. The service recipient or the trustee of a trust may

purchase, accept, or otherwise acquire an interest in personal insurance with the

trust as a beneficiary or owner. Written consent of the insured individual is

required. As used in this subdivision:

(1) "Service provider" means an individual, other than an employee, who

provides significant services to a service recipient.

(2) "Service recipient" means the entity for which services are performed by a

service provider.
N.D. Cent. Code § 26.1-30.1-01 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-01
26.1-30.1-01. Application
Status: in_force

26.1-30.1-01. Application

This chapter applies to policies primarily insuring risks arising from the conduct of a

commercial or industrial enterprise except workforce safety and insurance policies, private

passenger automobile policies, inland marine policies, excess umbrella liability policies, errors

and omissions policies, and officers and directors liability policies.
N.D. Cent. Code § 26.1-10-13 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-13
26.1-10-13. Judicial review - Mandamus
Status: in_force

26.1-10-13. Judicial review - Mandamus

1. Any person aggrieved by any act, determination, rule, order, or any other action of the

commissioner under this chapter may appeal to the district court for Burleigh County.

The court shall conduct the review without a jury and by trial de novo, except if all

parties, including the commissioner, so stipulate, the review must be confined to the

record. Portions of the record may be introduced into evidence by stipulation in a trial

de novo as to those parties so stipulating.

2. The filing of an appeal under this section stays the application of any rule, order, or

other action of the commissioner to the appealing party unless the court, after giving

the party notice and an opportunity to be heard, determines a stay would be

detrimental to the interest of policyholders, shareholders, creditors, or the public.

3. Any person aggrieved by any failure of the commissioner to act or make a

determination required by this chapter may petition the district court for Burleigh

County for a writ in the nature of a mandamus or a peremptory mandamus directing

the commissioner to act or make a determination.
N.D. Cent. Code § 26.1-33-15 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-15
26.1-33-15. Content of variable life contracts
Status: in_force

26.1-33-15. Content of variable life contracts

Any variable life insurance contract delivered or issued for delivery in this state must contain

a statement of the essential features of the procedures to be followed by the insurance

company in determining the dollar amount of the variable benefits. Any contract under which the

benefits vary to reflect investment experience, including a group contract and any certificate in

evidence of variable benefits issued thereunder, must state that the dollar amount will so vary

and must contain on its first page a statement to the effect that the benefits under the contract

are on a variable basis.
N.D. Cent. Code § 26.1-21-08 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-08
26.1-21-08. Review of coverage by auditor
Status: repealed

26.1-21-08. Review of coverage by auditor

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-06.1-52 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-52
26.1-06.1-52. Ancillary formal proceedings
Status: in_force

26.1-06.1-52. Ancillary formal proceedings

1. If a domiciliary liquidator has been appointed for an insurer not domiciled in this state,

the commissioner may file a petition with the district court requesting appointment as

ancillary receiver in this state:

a. If the commissioner finds that there are sufficient assets of the insurer located in

this state to justify the appointment of an ancillary receiver; or

b. If the protection of creditors or policyholders in this state so requires.

2. The court may issue an order appointing an ancillary receiver in whatever terms it shall

deem appropriate. The filing or recording of the order with the recorder in this state

imparts that same notice as a deed, bill of sale, or other evidence of title duly filed or

recorded with that recorder.

3. When a domiciliary liquidator has been appointed in a reciprocal state, the ancillary

receiver appointed in this state may, whenever necessary, aid and assist the

domiciliary liquidator in recovering assets of the insurer located in this state. The

ancillary receiver shall, as soon as practicable, liquidate from their respective

securities those special deposit claims and secured claims which are proved and

allowed in the ancillary proceedings in this state, and shall pay the necessary

expenses of the proceedings. The ancillary receiver shall promptly transfer all

remaining assets, books, accounts, and records to the domiciliary liquidator. Subject to

this section, the ancillary receiver and deputies of the ancillary receiver shall have the

same powers and be subject to the same duties with respect to the administration of

assets as a liquidator of an insurer domiciled in this state.

4. When a domiciliary liquidator has been appointed in this state, ancillary receivers

appointed in reciprocal states shall have, as to assets and books, accounts, and other

records in their respective states, corresponding rights, duties, and powers to those

provided in subsection 3 for ancillary receivers appointed in this state.
N.D. Cent. Code § 26.1-26.8-04 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-04
26.1-26.8-04. Application for resident license
Status: in_force

26.1-26.8-04. Application for resident license

An individual applying for a resident public adjuster license shall submit to the commissioner

a completed uniform individual application and declare under penalty of denial, suspension, or

revocation of the license that the statements made in the application are true, correct, and

complete to the best of the individual's knowledge and belief. The commissioner shall approve

the application if the commissioner determines the individual:

1. Is at least eighteen years of age;

2. Has a principal place of residence or principal place of business in this state;

3. Has not committed an act that is a ground for denial, suspension, or revocation set

forth in section 26.1-26.8-10;

4. Has paid the resident licensing fee prescribed in section 26.1-01-07;

5. Except as otherwise provided in this chapter, has passed the examinations required by

section 26.1-26.8-07;

6. Is trustworthy, reliable, and of good reputation;

7. Is financially responsible to exercise the license and has provided proof of financial

responsibility, as required in section 26.1-26.8-11;

8. Maintains an office in this state, with public access to the office by reasonable

appointment or regular business hours; and

9. Has completed a criminal history record check as provided in section 12-60-24.

a. All costs associated with the criminal history record check under this section are

the responsibility of the applicant.

b. This subsection does not apply to license continuation under section 26.1-26.8-09

or to an individual who applies for a public adjuster license within twelve months

following the cancellation or expiration of a valid resident public adjuster license

issued by the department, unless the license was suspended or revoked.

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

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

history record checks.
N.D. Cent. Code § 26.1-27-09 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-09
26.1-27-09. Payment to administrator
Status: in_force

26.1-27-09. Payment to administrator

Whenever an insurer uses the services of an administrator, the payment to the administrator

of any premiums or charges for insurance by or on behalf of the insured is deemed to have

been received by the insurer, and the payment of return premiums or claims by the insurer to

the administrator is not deemed payment to the insured or claimant until the payment is

received by the insured or claimant. This section does not limit any right of the insurer against

the administrator resulting from its failure to make payments to the insurer, insureds, or

claimants.
N.D. Cent. Code § 26.1-33.4-16 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-16
26.1-33.4-16. Unfair trade practices
Status: in_force

26.1-33.4-16. Unfair trade practices

A violation of this chapter is considered an unfair trade practice pursuant to state law and

subject to the penalties provided by state law.
N.D. Cent. Code § 26.1-15.1-31 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-31
26.1-15.1-31. Suspension, revocation, or refusal of license of foreign society
Status: in_force

26.1-15.1-31. Suspension, revocation, or refusal of license of foreign society

1. If the commissioner upon investigation finds that a foreign society transacting or

applying to transact business in this state has committed any of the acts set forth in

subdivision a, b, c, or e of subsection 1 of section 26.1-15.1-30, the commissioner

shall notify the society of the deficiency or deficiencies stating in writing the reasons for

the commissioner's dissatisfaction and requiring that the deficiency or deficiencies be

corrected. After the notice the society has a thirty-day period in which to comply with

the commissioner's request for correction. If the society fails to comply, the

commissioner shall notify the society of noncompliance and require the society to

show cause on a date specified why its license should not be suspended, revoked, or

refused. If the society does not present good and sufficient reason why its authority to

do business in this state should not be suspended, revoked, or refused, the

commissioner may suspend or refuse the license of the society to do business in this

state until satisfactory evidence is furnished to the commissioner that the suspension

or refusal should be withdrawn or the commissioner may revoke the authority of the

society to do business in this state.

2. This section does not prevent any society from continuing in good faith all contracts

made in this state during the time the society was legally authorized to transact

business in this state.
N.D. Cent. Code § 26.1-19-17 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-17
26.1-19-17. Statutory construction and relationship to other laws
Status: in_force

26.1-19-17. Statutory construction and relationship to other laws

Except as otherwise provided in this chapter, other provisions of the insurance laws of this

state are not applicable to any legal services organization issued a certificate of authority under

this chapter.
N.D. Cent. Code § 26.1-04-05 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-05
26.1-04-05. Discrimination by life insurance companies and rebates and inducements by insurance producers prohibited
Status: in_force

26.1-04-05. Discrimination by life insurance companies and rebates and inducements

by insurance producers prohibited.

A life insurance company doing business in this state may not make or permit any

distinction or discrimination between insureds of the same class and with equal expectation of

life in the amount or payment of premiums or rate charges for policies of life or endowment

insurance, or in the dividends or other benefits payable thereon, or in any other of the terms or

conditions of the contracts which it makes. No life insurance company, and no insurance

producer therefor, either personally or by any other person, may:

1. Make any insurance contract, or agreement with reference thereto, other than such as

is expressed plainly in the policy issued thereon.

2. Offer, promise, allow, give, set off, or pay any rebate of the whole or any part of the

premium payable on the policy or the insurance producer's commission thereon, or

any special favor or advantage in the dividends, earnings, profits, or other benefit

founded, arising, accruing, or to accrue thereon or therefrom.

3. Offer, promise, allow, or give any special advantage in the date of the policy or the age

at which the same is issued.

4. Offer, promise, allow, or give any paid employment or contract for services of any kind,

or any other valuable inducement or consideration whatsoever not specified in the

insurance policy or contract.

5. Offer, promise, give, option, sell, or purchase, or offer to give, sell, or purchase, as

inducement to insurance or in connection therewith, any stocks, bonds, securities, or

property, or any dividends or profits accruing or to accrue thereon, or other thing of

value whatsoever not specified in the policy.

This section does not prevent the taking of a bona fide obligation, with legal interest, in payment

of any premium.
N.D. Cent. Code § 26.1-33-44 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-44
26.1-33-44. Life insurance policy ownership or retention by trust - Duties of trustee
Status: in_force

26.1-33-44. Life insurance policy ownership or retention by trust - Duties of trustee

Notwithstanding any other provision of law, the duties of a trustee regarding the acquisition,

retention, or ownership of a life insurance policy upon the life of any one or more of the grantor

of the trust, the grantor's spouse, children, grandchildren, or parents include a duty of loyalty

and fair dealing, but, except as provided below, do not include a duty to:

1. Determine whether any life insurance policy in the trust is or remains a proper

investment;

2. Exercise a policy option, right, or privilege available under a life insurance policy; or

3. Diversify the investment.

A trustee is not liable to the beneficiaries under the trust instrument or to any other person for a

loss that is claimed to result from the absence of these duties, except if a trustee acquires a

replacement policy for the trust which replaces an existing policy owned by the trust or

previously owned by the trust. The trustee's exoneration from duty provided in this section does

not apply to the replacement policy and only applies to a policy transferred to a trust by the

grantor or some other party other than the trustee or acquired by the trustee of a trust which

before the acquisition of the policy had never owned any such life insurance policy.
N.D. Cent. Code § 26.1-36.4-09 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-09
26.1-36.4-09. Health insurance utilization reports
Status: in_force

26.1-36.4-09. Health insurance utilization reports

1. Once each calendar year, any employer with fifty-one or more eligible employees, any

employer investigating becoming part of a health plan, including a plan sponsored by

an association or a multiple employer welfare arrangement, or any employer upon

termination of health insurance coverage, the employer is entitled to a report from the

insurer or administrator of that employer's employee health plan which includes:

a. Annual data for the previous three years on the premiums paid by the employer

and the claims paid by the insurer or administrator.

b. A current census of employees and dependents covered under the employer's

health plan.

2. Insurers shall provide the report pursuant to subsection 1 to an employer within thirty

days of receipt of a request for the information.

3. The information provided pursuant to subsection 1 may not identify specific employee

claims or other confidential health care information.

4. Upon notification of termination of health insurance before the end of a benefit period,

the terminated insurer, at the request of the employer and within thirty days of the

request, shall supply the succeeding or new insurer a report of all deductibles and

coinsurance payments for each employee covered by the employer's health insurance

plan for the most recent benefit period.
N.D. Cent. Code § 26.1-15.1-16 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-16
26.1-15.1-16. Benefits
Status: in_force

26.1-15.1-16. Benefits

1. A society may provide the following contractual benefits in any form:

a. Death benefits.

b. Endowment benefits.

c. Annuity benefits.

d. Temporary or permanent disability benefits.

e. Hospital, medical, or nursing benefits.

f. Monument or tombstone benefits to the memory of deceased members.

g. Other benefits authorized for life insurers which are not inconsistent with this

chapter.

2. A society shall specify in its rules those persons who may be covered by the

contractual benefits in subsection 1, consistent with providing benefits to members and

their dependents. A society may provide benefits on the lives of children under the

minimum age for adult membership upon application of an adult member.
N.D. Cent. Code § 26.1-36-33 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-33
26.1-36-33. Medicare supplement policy benefit standards
Status: repealed

26.1-36-33. Medicare supplement policy benefit standards

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-05-20 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-20
26.1-05-20. Limitation on purchase and conveyance of real property
Status: in_force

26.1-05-20. Limitation on purchase and conveyance of real property

A domestic insurance company may acquire, hold, and convey only the real property that

has been:

1. Mortgaged to it in good faith by way of security for loans previously contracted or for

moneys due to it.

2. Conveyed to it in satisfaction of debts previously contracted in the course of its

dealings.

3. Purchased at sales on judgments, decrees, or mortgages obtained or made for debts

previously contracted in the course of its dealings.

4. Acquired as an investment for the production of income or has been acquired to be

improved or developed for an investment for the production of income as provided by

law.

Any company may improve real property so acquired or remodel existing improvements and

exchange the real property for other real property or securities, and real property acquired by

the exchange may be improved or the improvements remodeled.
N.D. Cent. Code § 26.1-05-06 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-06
26.1-05-06. Articles of incorporation - Contents - Filing - Company name
Status: in_force

26.1-05-06. Articles of incorporation - Contents - Filing - Company name

The articles of incorporation of a corporation organized under this chapter must set forth, in

addition to what is required to be set forth under the general law governing profit corporations:

1. The kind of insurance proposed to be issued.

2. That the company will operate on the stock plan unless it is organized to engage in the

life insurance business, in which case the articles must specify whether the company

will operate on the stock or mutual plan.

3. The period for the commencement and termination of the company's fiscal year.

4. The period of its existence which may be perpetual.

5. The name of the company, which may be any name not previously in use by an

existing corporation authorized to do business in this state, but the words "insurance

company", or, if the business specified in the articles is that of life insurance and the

business is to be conducted upon the mutual plan, the words "mutual life insurance

company" must constitute a part of such name.

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

with the commissioner. The commissioner may not issue a certificate to the company if, in the

commissioner's judgment, the company's name too closely resembles the name of an existing

corporation or is liable to mislead the public.
N.D. Cent. Code § 26.1-25.2-05 — ND Code / Title 26.1 / Chapter 26.1-25.2 / Section 26.1-25.2-05
26.1-25.2-05. Disclosure requirements
Status: in_force

26.1-25.2-05. Disclosure requirements

An insurer writing personal insurance must inform the applicant in writing or in the same

medium as the application at the time of an application for personal insurance that the insurer

will consider the insured's claims history in determining whether to decline, cancel, nonrenew, or

surcharge a policy and that a claim incurred by the insured will be reported to an insurance

support organization.
N.D. Cent. Code § 26.1-22-17 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-17
26.1-22-17. Losses - Limitation
Status: in_force

26.1-22-17. Losses - Limitation

1. All losses by the perils insured against under this chapter must be paid out of the fund

in an amount not exceeding the amount of the insurance upon any particular risk. The

loss upon any building or property insured in the fund, whether totally destroyed or

partially damaged by the perils, must be adjusted by the office, authorized adjuster, or

adjusting company. All loss adjustment expenses must be included as part of the loss

and must be paid from the fund.

2. Immediately after an event causing loss or damage, the insured shall notify the office

in a manner prescribed by the office. The notification must include a description of the

property, the amount of insurance carried, the probable amount of loss or damage,

and the probable cause of loss or damage. The insured may not disturb the property

except as provided in the policy until the office or the office's agent has adjusted the

loss or has given notice that the information on which the adjustment is to be made

has been secured.

3. Allowances for loss or damage must be paid from the fund.
N.D. Cent. Code § 26.1-45-10 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-10
26.1-45-10. Application
Status: in_force

26.1-45-10. Application

Any policy or rider advertised, marketed, or offered as long-term care or nursing home

insurance must comply with the provisions of this chapter and all other applicable insurance

laws insofar as they do not conflict with this chapter.
N.D. Cent. Code § 26.1-33-07 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-07
26.1-33-07. Life policy issued by domestic companies in foreign state may conform to laws thereof
Status: in_force

26.1-33-07. Life policy issued by domestic companies in foreign state may conform to

laws thereof.

The life insurance policies of a domestic life insurance company, when issued or delivered

in any other state, country, province, or territory, may contain any provision required by the laws

of the state, country, province, or territory in which issued, anything in this chapter to the

contrary notwithstanding.
N.D. Cent. Code § 26.1-17-24 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-24
26.1-17-24. Unfair insurance practices
Status: in_force

26.1-17-24. Unfair insurance practices

Chapter 26.1-04 applies to health service corporations and contracts with hospitals, doctors

of medicine and oral surgeons, dentists, practitioners, health service providers, and subscribers,

except to the extent that the commissioner determines that the nature of health service

corporations, or of any contracts issued or entered into by those corporations, renders chapter

26.1-04 clearly inappropriate.
N.D. Cent. Code § 26.1-11-02 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-02
26.1-11-02. Liability of officers, agents, and stockholders of noncomplying foreign company - Penalty
Status: in_force

26.1-11-02. Liability of officers, agents, and stockholders of noncomplying foreign

company - Penalty.

Any failure to comply with section 26.1-11-01 renders each officer, agent, and stockholder of

any foreign insurance company failing to comply therewith jointly and severally liable on all

contracts of the company made within this state during the time the company is in default. Each

officer and agent of the noncomplying company is guilty of a class A misdemeanor.
N.D. Cent. Code § 26.1-26.1-04 — ND Code / Title 26.1 / Chapter 26.1-26.1 / Section 26.1-26.1-04
26.1-26.1-04. Termination of insurance producers for cause - Exceptions
Status: in_force

26.1-26.1-04. Termination of insurance producers for cause - Exceptions

This chapter does not apply to terminations for abandonment, insolvency of the terminating

company, gross and willful misconduct, refusal, suspension, revocation, or termination of the

insurance producer's license by the insurance commissioner, sale or material change or

ownership of agency, fraud, material misrepresentation or failure to pay an independent

insurance producer's account less the independent insurance producer's commission and any

disputed items within thirty days after written demand by the company.
N.D. Cent. Code § 26.1-02-31 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-31
26.1-02-31. Confidentiality of complaint information - Exceptions
Status: in_force

26.1-02-31. Confidentiality of complaint information - Exceptions

1. A document, material, or other information, including the contents of a claim file, which

is provided to, obtained by, created by, or disclosed to the commissioner in response

to a consumer assistance request or a complaint is confidential and not subject to

section 44-04-18, a subpoena to the department, or discovery request or admissible

as evidence in a private civil action. However, the commissioner may disclose the

subject matter of the assistance request or complaint, provide a general description of

the disposition of the request or complaint, and use the document, material, or other

information for a regulatory or legal action brought as a part of the official duties of the

commissioner.

2. A privilege or claim of confidentiality in the document, material, or information is not

waived as a result of disclosure to the commissioner under this section or as a result

of providing or disclosing information to the commissioner.
N.D. Cent. Code § 26.1-26.8-06 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-06
26.1-26.8-06. License required for business entity
Status: in_force

26.1-26.8-06. License required for business entity

1. A business entity acting as a public adjuster in this state must be licensed as a public

adjuster. A business entity applying for a public adjuster license shall submit to the

commissioner a completed uniform business entity application and declare under

penalty of denial, suspension, or revocation of the license that the statements made in

the application are true, correct, and complete to the best of the knowledge and belief

of the entity. The commissioner shall approve the application if the commissioner

determines the applicant:

a. Has paid the business entity licensing fee prescribed in section 26.1-01-07; and

b. Has designated a resident public adjuster or a nonresident public adjuster

licensed pursuant to this chapter to be responsible for compliance with the

insurance laws, rules, and regulations of this state for the business entity.

2. The commissioner may require additional documents be submitted that are reasonably

necessary to verify the information contained in an application pursuant to this section.
N.D. Cent. Code § 26.1-07.1-03 — ND Code / Title 26.1 / Chapter 26.1-07.1 / Section 26.1-07.1-03
26.1-07.1-03. Examination
Status: in_force

26.1-07.1-03. Examination

Any person or entity which is unable to show that it is subject to the jurisdiction of another

agency of this state, any subdivision thereof, or the federal government shall submit to an

examination by the commissioner to determine the organization and solvency of the person or

the entity, and to determine whether or not such person or entity is in compliance with the

applicable provisions of state law.
N.D. Cent. Code § 26.1-53.1-24 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-24
26.1-53.1-24. Civil penalties for violation of chapter
Status: in_force

26.1-53.1-24. Civil penalties for violation of chapter

In addition to or in lieu of any applicable denial, suspension, or revocation of registration,

any person violating this chapter may, after hearing, be subject to a civil fine not to exceed ten

thousand dollars for each violation. The fine may be collected and recovered in an action

brought in the name of the state.
N.D. Cent. Code § 26.1-04-12 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-12
26.1-04-12. Hearing
Status: in_force

26.1-04-12. Hearing

Whenever the commissioner has reason to believe that any person has been engaged or is

engaging in this state in any unfair method of competition or any unfair or deceptive act or

practice defined in section 26.1-04-03, and that a proceeding would be to the interest of the

public, the commissioner shall conduct a hearing.
N.D. Cent. Code § 26.1-12-05 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-05
26.1-12-05. Legal existence - Adoption of bylaws - Transaction of business
Status: in_force

26.1-12-05. Legal existence - Adoption of bylaws - Transaction of business

The mutual insurance company has legal existence as of the date of the certificate. The

board of directors named in the articles thereafter may adopt bylaws which must be filed with

the commissioner, accept applications for insurance, and proceed to transact company

business. Insurance may not be put into force, however, until the company has been licensed to

transact an insurance business as provided by this chapter.
N.D. Cent. Code § 26.1-12.2-16 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-16
26.1-12.2-16. Laws applicable to converted stock company
Status: in_force

26.1-12.2-16. Laws applicable to converted stock company

1. A converting mutual company is not permitted to convert under this chapter if, as a

direct result of the conversion, any person or any affiliate thereof acquires control of

the converted stock company, unless that person and such person's affiliates comply

with the provisions of North Dakota law regarding the acquisition of control of an

insurance company.

2. Except as otherwise specified in this chapter, a converted stock company has and may

exercise all the rights and privileges and is subject to all of the requirements and

regulations imposed on stock insurance companies under the laws of North Dakota

relating to the regulation and supervision of insurance companies, but the converting

stock company may not exercise rights or privileges that other stock insurance

companies may not exercise.
N.D. Cent. Code § 26.1-47-02.2 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-02.2
26.1-47-02.2. Dental networks
Status: in_force

26.1-47-02.2. Dental networks

1. As used in this section:

a. "Affiliate" means a person that directly or indirectly through one or more

intermediaries controls, or is under the control of, or is under common control

with, the person specified.

b. "Contracting entity" means a person that enters a direct contract with a dental

provider for the delivery of dental services.

c. "Network" means a group of preferred dental providers providing services under a

network plan.

d. "Network plan" means a dental benefit plan that requires a covered individual to

use, or creates incentives, including financial incentives, for a covered individual

to use a dental provider managed by, owned by, under contract with, or employed

by the dental insurer.

e. "Third party" means an entity that is not a party to a contracting entity's dental

provider network.

2. A contracting entity may grant a third party access to a dental provider network

contract, or a provider's dental services or contractual discounts provided pursuant to

a dental provider network contract, if all of the following are met:

a. The contract specifically states the contracting entity may enter an agreement

with a third party allowing the third party to obtain the contracting entity's rights

and responsibilities as if the third party were the contracting entity.

b. If the contracting entity is a dental insurer, the dental provider may opt out of the

third-party access at the time the dental provider network contract was entered or

renewed.

c. The contracting entity identifies, in writing or electronic form to the dental

provider, all third parties in existence as of the date the contract is entered or

renewed.

d. The contracting entity notifies dental network providers that a new third party is

leasing or purchasing the network at least thirty days in advance of the

relationship taking effect.

e. The contracting entity makes available a copy of the dental provider network

contract relied on in the adjudication of a claim to a participating dental provider

within thirty days of a request from the dental provider.

3. A dental provider's refusal to agree in writing to the third-party access to the dental

provider network does not permit the contracting entity to end the contractual

relationship with the dental provider.

4. The provisions of this section do not apply if access to a provider network contract is

granted to a dental carrier or an entity operating in accordance with the same brand

licensee program as the contracting entity or to an entity that is an affiliate of the

contracting entity.
N.D. Cent. Code § 26.1-27-03 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-03
26.1-27-03. License required - Penalty
Status: in_force

26.1-27-03. License required - Penalty

1. A person, including a person who directly or indirectly underwrites, collects charges or

premiums from, or adjusts or settles claims on residents of this state in connection with

life, annuity, or health coverage provided by a self-funded plan, may not act as or hold

oneself out to be an administrator in this state, for the kinds of business for which the

person is acting as an administrator, without a license issued by the commissioner.

Any person violating this subsection is guilty of a class C felony.

2. All applications must be accompanied by a filing fee as prescribed in section

26.1-01-07.

3. The commissioner shall issue a license unless the commissioner after due notice and

hearing determines that the administrator is not competent, trustworthy, financially

responsible, or of good personal and business reputation, or has had a previous

application for an insurance license denied for cause within five years.

4. The administrator shall pay an annual renewal fee as prescribed in section 26.1-01-07

to maintain the license.

5. After notice and hearing, the commissioner may revoke a license or fine the

administrator not more than ten thousand dollars, or both, or the commissioner may

suspend a license, or fine the administrator not more than five thousand dollars, or

both, upon finding that either the administrator violated section 26.1-27-05 and

subsection 4 of section 26.1-27-06 and also violated subsection 1, 2, or 3 of section

26.1-27-06 or section 26.1-27-07, 26.1-27-08, 26.1-27-10, 26.1-27-11, or 26.1-27-12,

or the administrator is not competent, trustworthy, financially responsible, or of good

personal and business reputation.
N.D. Cent. Code § 26.1-25-03 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-03
26.1-25-03. Making of rates
Status: in_force

26.1-25-03. Making of rates

1. Rates must be made in accordance with the following provisions:

a. Due consideration must be given to past and prospective loss experience within

this state and outside this state to the extent that the consideration is given to

areas the commissioner determines are representative of this state, to any

conflagration and catastrophe hazards, to a reasonable margin for profit and

contingencies, to dividends, savings, or unabsorbed premium deposits allowed or

returned by insurers to their policyholders, members, or subscribers, to past and

prospective expenses both countrywide, as determined by the commissioner, and

those specially applicable to this state, and to all other relevant factors within and

outside this state. In the case of fire insurance rates, consideration must be given

to the experience of the fire insurance business during a period of not less than

the most recent five-year period for which the experience is available. In

determining the reasonableness of the profit, consideration may be given to

investment income.

b. The systems of expense provisions included in the rates for use by any insurer or

group of insurers may differ from those of other insurers or group of insurers to

reflect the requirements of the operating methods of any such insurer or group

with respect to any kind of insurance, or with respect to any subdivision or

combination thereof for which subdivision or combination separate expense

provisions are applicable.

c. Risks may be grouped by classifications for the establishment of rates and

minimum premiums. Classification rates may be modified to produce rates for

individual risks in accordance with rating plans which establish standards for

measuring variations in hazards or expense provisions, or both. The standards

may measure any differences among risks that can be demonstrated to have a

probable effect upon losses or expense. No risk classification, however, may be

based upon race, creed, national origin, or the religion of the insured.

d. Rates may not be excessive, inadequate, or unfairly discriminatory.

2. Except to the extent necessary to meet subdivision d of subsection 1, uniformity

among insurers in any matters within the scope of this section is neither required nor

prohibited.

3. Rates made in accordance with this section may be used subject to this chapter.
N.D. Cent. Code § 26.1-12-12 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-12
26.1-12-12. Compliance with general insurance laws - Provisions or conditions in policy
Status: in_force

26.1-12-12. Compliance with general insurance laws - Provisions or conditions in

policy.

A mutual insurance company organized under this chapter shall comply with the provisions

of any law applicable to a stock insurance company effecting the same kind of insurance. A

company may insert in any form of policy prescribed by the law of this state any provisions or

conditions required by its plan of insurance which are not inconsistent or in conflict with the law

of this state. The policy may conform to the form prescribed by the law, if the policy includes a

provision or endorsement reciting that the policy is to be construed as if it were in the form

prescribed by the law.
N.D. Cent. Code § 26.1-38.1-13 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-13
26.1-38.1-13. Tax exemptions
Status: in_force

26.1-38.1-13. Tax exemptions

The association is exempt from payment of all fees and all taxes levied by this state or any

of its subdivisions, except taxes levied on real property.
N.D. Cent. Code § 26.1-26.8-15 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-15
26.1-26.8-15. Standards of conduct of public adjuster
Status: in_force

26.1-26.8-15. Standards of conduct of public adjuster

1. A public adjuster shall serve with objectivity and complete loyalty to the interest of the

insured and in good faith shall render to the insured such information, counsel, and

service, as within the knowledge, understanding, and opinion of the public adjuster will

best serve the insurance claim needs and interest of the insured.

2. A public adjuster may not solicit or attempt to solicit an insured during the progress of

a loss-producing occurrence, as defined in the insured's insurance contract.

3. A public adjuster may not permit an unlicensed employee or representative of the

public adjuster to conduct business for which a license is required under this chapter.

4. A public adjuster may not have a financial interest in any aspect of the claim, other

than the salary, fee, commission, or other consideration established in the written

contract with the insured. A financial interest includes ownership of, employment by, or

other consideration received from an individual or business entity that performs work

pertaining to damage related to the insured loss.

5. A public adjuster may not acquire an interest in salvage of property subject to the

contract with the insured unless the public adjuster obtains written permission from the

insured after settlement of the claim with the insurer.

6. A public adjuster may not refer or direct the insured to obtain needed repairs or

services in connection with a loss from a person:

a. With which the public adjuster has a financial interest; or

b. From which the public adjuster may receive compensation or other consideration

for the referral.

7. A public adjuster may not undertake the adjustment of a claim if the public adjuster is

not competent and knowledgeable as to the terms and conditions of the insurance

coverage or if the loss or coverage otherwise exceeds the current expertise of the

public adjuster.

8. A public adjuster may not knowingly make a false oral or written material statement

regarding a person engaged in the business of insurance to an insured client or

potential insured client.

9. A public adjuster, while licensed pursuant to this chapter, may not represent or act as a

company adjuster or independent adjuster in any circumstance.

10. A public adjuster may not enter a contract or accept a power of attorney that vests in

the public adjuster the effective authority to choose the person that will perform repair

work.

11. A public adjuster may not agree to a loss settlement without the insured's knowledge

and consent.
N.D. Cent. Code § 26.1-26.7-06 — ND Code / Title 26.1 / Chapter 26.1-26.7 / Section 26.1-26.7-06
26.1-26.7-06. Application for license and fees
Status: in_force

26.1-26.7-06. Application for license and fees

1. A vendor shall apply for licensure under subsection 2 of section 26.1-26-13.3.

2. An applicant shall apply for licensure under the provisions of section 26.1-26-13.3. In

lieu of providing the information for all officers, directors, and shareholders owning

more than ten percent of the applicant, the requirements for the applicant are limited to

requiring the applicant to provide the name, residence address, and other information

required by the commissioner for an employee or officer of the vendor that is

designated by the applicant as the person responsible for the vendor's compliance

with the requirements of this chapter. However, if the vendor derives more than fifty

percent of the vendor's revenue from the sale of portable electronics insurance the

information required under this subsection must be provided for all officers, directors,

and shareholder of record having beneficial ownership of ten percent or more.

3. Each vendor of portable electronic devices licensed under this chapter shall pay to the

commissioner a fee as prescribed by the commissioner.

4. Any vendor engaging in portable electronics insurance transactions before July 1,

2015, shall apply for licensure within ninety days of the application being made

available by the commissioner. Any applicant commencing operations after July 1,

2015 shall obtain a license before offering portable electronics insurance. The

provisions and penalties under this section are in addition to those provided under
N.D. Cent. Code § 26.1-02.2-11 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-11
26.1-02.2-11. Implementation dates
Status: repealed

26.1-02.2-11. Implementation dates

Repealed by S.L. 2025, ch. 280, § 5.
N.D. Cent. Code § 26.1-06-04 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-04
26.1-06-04. Deceptive practices
Status: in_force

26.1-06-04. Deceptive practices

It is unlawful for any person to misstate any material fact or omit to state any material fact,

necessary to make the statements made, in the light of the circumstances under which they are

made, not misleading, or to engage in any fraudulent, deceptive, or manipulative acts or

practices, in connection with any takeover bid, or any solicitation of offerees in opposition to or

in favor of any takeover bid.
N.D. Cent. Code § 26.1-30-03 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-03
26.1-30-03. Policies classified - Open, running, and valued policies defined
Status: in_force

26.1-30-03. Policies classified - Open, running, and valued policies defined

An insurance policy is open, running, or valued, and these terms are defined as follows:

1. An open policy is one in which the value of the thing insured is not agreed upon but is

left to be ascertained in case of loss.

2. A running policy is one which contemplates successive insurances and which provides

that the object of the policy may be defined from time to time, especially as to the

subjects of insurance, by additional statements or endorsements.

3. A valued policy is one which expresses on its face an agreement that the thing insured

must be valued at a specified sum.
N.D. Cent. Code § 26.1-11-13 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-13
26.1-11-13. Right of service not abridged
Status: in_force

26.1-11-13. Right of service not abridged

This chapter does not limit or abridge the right to serve any process, notice, or demand

upon any insurance company in any other manner permitted by law.
N.D. Cent. Code § 26.1-32-02 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-02
26.1-32-02. Liability of insurer for loss in rescuing thing insured
Status: in_force

26.1-32-02. Liability of insurer for loss in rescuing thing insured

An insurer is liable when the thing insured is rescued from a peril insured against that

otherwise would have caused a loss, if in the course of rescue the thing is exposed to peril not

insured against which permanently deprives the insured of its possession in whole or in part.

The insurer is liable, also, when a loss is caused by efforts to rescue the thing insured from a

peril insured against.
N.D. Cent. Code § 26.1-09-14 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-14
26.1-09-14. General insurance laws not applicable
Status: in_force

26.1-09-14. General insurance laws not applicable

Except as otherwise provided in this chapter, no insurance law of this state applies to the

exchange of indemnity contracts under this chapter unless the law specifically applies to the

contracts.
N.D. Cent. Code § 26.1-51-01 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-01
26.1-51-01. Definitions
Status: in_force

26.1-51-01. Definitions

In this chapter, unless the context or subject matter otherwise requires:

1. "Commissioner" means the insurance commissioner.

2. "Insurance compliance audit" means a voluntary, internal evaluation, review,

assessment, audit, or investigation for the purpose of identifying or preventing

noncompliance with, or promoting compliance with, laws, regulations, orders, or

industry or professional standards, which is conducted by or on behalf of an insurer

licensed or regulated under this title, or which involves an activity regulated under this

title.

3. "Insurance compliance self-critical analysis audit document" means a document

prepared as a result of or in connection with an insurance compliance audit. An

insurance compliance self-critical analysis audit document may include a written

response to the findings of an insurance compliance audit. An insurance compliance

self-critical analysis audit document may include, as applicable, field notes and

records of observations, workpapers, findings, opinions, suggestions, conclusions,

drafts, memoranda, drawings, photographs, exhibits, computer-generated or

electronically recorded information, telephone records, maps, charts, graphs, and

surveys, provided this supporting information is collected or developed for the primary

purpose and in the course of an insurance compliance audit. An insurance compliance

self-critical analysis audit document also includes:

a. An insurance compliance audit report prepared by an auditor, who may be an

employee of the insurer or an independent contractor, which may include the

scope of the audit, the information gained in the audit, and conclusions and

recommendations, with exhibits and appendices;

b. Memoranda and documents analyzing portions or all of the insurance compliance

audit report and discussing potential implementation issues;

c. An implementation plan that addresses correcting past noncompliance, improving

current compliance, and preventing future noncompliance; or

d. Analytic data generated in the course of conducting the insurance compliance

audit.

4. "Insurer" means an insurance company, nonprofit service corporation, or health

maintenance organization organized under the laws of this state or a foreign insurance

company, nonprofit service corporation, or health maintenance organization authorized

to do business in this state.
N.D. Cent. Code § 26.1-05-14 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-14
26.1-05-14. Exceptions
Status: in_force

26.1-05-14. Exceptions

Sections 26.1-05-11 through 26.1-05-13 do not apply to equity securities of a domestic

stock insurance company if the securities are registered, or are required to be registered,

pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if the company

does not have any class of its equity securities held of record by one hundred or more persons

on the last business day of the year preceding the year in which equity securities of the

company would be subject to sections 26.1-05-11 through 26.1-05-13 except for this exception.

Sections 26.1-05-11 through 26.1-05-13 do not apply to foreign or domestic arbitrage

transactions unless made in contravention of any rules the commissioner adopts to carry out the

purposes of sections 26.1-05-11 through 26.1-05-15. Section 26.1-05-12 does not apply to any

purchase and sale or sale and purchase, and section 26.1-05-13 does not apply to any sale, of

an equity security of a domestic stock insurance company not held by the dealer in an

investment account, by a dealer in the ordinary course of business and incident to the

establishment or maintenance by the dealer of a primary or secondary market, otherwise than

on an exchange as defined in the Securities Exchange Act of 1934, for the security.
N.D. Cent. Code § 26.1-36.7-03 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-03
26.1-36.7-03. Reinsurance association of North Dakota
Status: repealed

26.1-36.7-03. Reinsurance association of North Dakota

1. The reinsurance association of North Dakota is established as a nonprofit legal entity.

As a condition of writing health insurance business in this state, an insurer that has

issued or administered a group health benefit plan within the previous twelve months

or is actively marketing or administering a group health benefit plan in this state shall

participate in the association.

2. The association may begin operation on either:

a. The January first following the date the commissioner certifies to the secretary of

state and the legislative council that the state's innovation waiver application has

been approved by the federal government pursuant to 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.]; or

b. The January first following the date the commissioner certifies to the secretary of

state and the legislative council that the Patient Protection and Affordable Care

Act [Pub. L. 111-148] has been repealed, amended, or finally adjudicated by a

court of law with jurisdiction over North Dakota as invalid or in a manner that

makes the granting of an innovation waiver unnecessary or inapplicable.

3. If the federal funding associated with an approved innovation waiver under section

1332 of the federal Patient Protection and Affordable Care Act [Pub. L. 111-148; 119

Stat. 124; 42 U.S.C. 1801 et seq.] is terminated or otherwise discontinued, the

commissioner may cease or suspend operations of the reinsurance association of

North Dakota beginning on the January first following the date the commissioner

notifies the board that federal funding has been terminated or otherwise discontinued.
N.D. Cent. Code § 26.1-15.1-11 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-11
26.1-15.1-11. Amendments to laws
Status: in_force

26.1-15.1-11. Amendments to laws

1. A domestic society may amend its laws by action of its supreme governing body at any

regular or special meeting or, if its laws so provide, by referendum. A referendum may

be held in accordance with the provisions of its laws by the vote of the voting members

of the society, by the vote of delegates or representatives of voting members, or by the

vote of local lodges. A society may provide for voting by mail. No amendment

submitted for adoption by referendum may be adopted unless, within six months from

the date of submission thereof, a majority of the members voting shall have signified

their consent to the amendment by one of the methods herein specified.

2. No amendment to the laws of any domestic society may take effect until approved by

the commissioner who shall approve the amendment if the commissioner finds that it

has been duly adopted and is not inconsistent with any requirement of the laws of this

state or with the character, objects, and purposes of the society. Unless the

commissioner disapproves an amendment within sixty days after filing, the

amendment is considered approved. The approval or disapproval of the commissioner

must be in writing and mailed to the secretary or corresponding officer of the society at

its principal office. If the commissioner disapproves an amendment, the reasons for

disapproval must be stated in the written notice of denial.

3. Within ninety days after approval by the commissioner of an amendment or a synopsis

of it, the society shall furnish a copy of the amendment to all members of the society

either by mail or by publication in the official publication of the society. The affidavit of

any officer of the society or of anyone authorized by it to mail any amendments or

synopses, stating facts that show the same have been duly addressed and mailed, is

prima facie evidence that the amendments or synopses have been furnished to the

addressees.

4. Every foreign society authorized to do business in this state shall file with the

commissioner a duly certified copy of all amendments to its laws within ninety days

after enactment.

5. Printed copies of the laws, certified by the secretary or corresponding officer of the

society, are prima facie evidence of the legal adoption thereof.
N.D. Cent. Code § 26.1-30-11 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-11
26.1-30-11. Express warranty must be written as part of policy
Status: in_force

26.1-30-11. Express warranty must be written as part of policy

Every express warranty made at or before the execution of an insurance policy must be

contained in the policy or in another instrument signed by the insured and referred to in the

policy as a part of the policy.
N.D. Cent. Code § 26.1-17-04 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-04
26.1-17-04. Directors - Responsibilities
Status: in_force

26.1-17-04. Directors - Responsibilities

A board of directors shall manage the business and affairs of a health service corporation

and has the power to amend bylaws. The board is to consist of at least nine members. At least a

majority of the directors of a health service corporation writing hospital or medical service

contracts under this chapter must be at all times subscribers.

A subscriber director is a director who is a subscriber and who is not a provider of health

care, a person who has a material financial or fiduciary interest in the delivery of health care

services or a related industry, an employee of an institution that provides health care services,

or a spouse or a member of the immediate family of such a person. Nominations for and

election of the subscriber directors must be made by the existing directors.

A director may serve on the board of only one corporation subject to this chapter at a time.

Population factors, representation of different geographic regions, and the demography of

the service area of the corporation subject to this chapter must be considered when making

nominations for the board of directors of a corporation subject to this chapter.

A health service corporation may not reimburse or compensate a director for more than

necessary and actual expenses for service as a member of the board of directors.
N.D. Cent. Code § 26.1-22-14 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-14
26.1-22-14. Assessments - Collections - Minimum fund balance - Bond and borrowing authorization
Status: in_force

26.1-22-14. Assessments - Collections - Minimum fund balance - Bond and borrowing

authorization.

1. Upon providing insurance coverage under this chapter, the office shall certify to the

insured the amount of the assessment. The state agency, political subdivision, or

winter show shall submit to the office the payment of the assessment within sixty days

after the date of the certification. The office shall deposit the assessments in the fund.

2. If the assessment is not paid within sixty days after the date of the certification, the

attorney general and the state's attorney of the relevant county shall bring appropriate

actions to enforce the collection of the assessment upon request of the office. A

judgment obtained under this section must include an interest rate of six percent per

year.

3. If the fund balance is less than twelve million dollars, the office shall levy an

assessment on every policy in force with the fund to increase the fund balance of the

fund to twelve million dollars calculated as follows:

a. The eighty or ninety percent coinsurance rate for each eligible insured property,

the full rate for policies providing coverage against indirect losses, and the full

rate for properties that are not eligible for the eighty or ninety percent coinsurance

rate, must be applied to the amount of insurance provided in each policy to

determine the tentative assessment against each policy.

b. The total of all tentative assessments is the sum of the amounts calculated under

subdivision a.

c. The percentage of the assessment needed to increase the fund balance to twelve

million dollars must be calculated and collected on each policy. The assessments

may not exceed sixty percent of the rates set by the insurance services office for

insured property unless the fund balance is less than three million dollars.

d. A fractional percent must be rounded up to the next whole percent.

4. If the fund balance is less than two million dollars due to a catastrophe, disaster, or a

succession of catastrophes or disasters, the office may issue anticipation bonds or

borrow from the Bank of North Dakota to provide the amount needed to increase the

fund balance to two million dollars upon approval from the industrial commission.

a. The term of the anticipation bonds or loan may not exceed twenty years.

b. The office shall levy an assessment on all policies in force under the fund to

repay the anticipation bonds or loan.
N.D. Cent. Code § 26.1-45-02 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-02
26.1-45-02. Group long-term care insurance - Association requirements - Approval
Status: in_force

26.1-45-02. Group long-term care insurance - Association requirements - Approval

Group long-term care insurance may be issued or delivered for the benefit of members of

an association, as defined in subdivision c of subsection 3 of section 26.1-45-01, if prior to

advertising, marketing, or offering a policy within this state, the association, or the insurer of the

association, files evidence with the insurance commissioner that the association has at the

outset a minimum of one hundred persons, has been organized and maintained in good faith for

purposes other than that of obtaining insurance, has been in active existence for at least one

year, and has a constitution and bylaws that provide that:

1. The association hold regular meetings not less than annually to further the purposes of

the members.

2. Except for credit unions, the association collect dues or solicit contributions from

members.

3. The members have voting privileges and representation on the governing board and

committees.

Thirty days after the filing, the association is deemed to satisfy the organizational requirements,

unless the commissioner makes a finding that the association does not satisfy the

organizational requirements.
N.D. Cent. Code § 26.1-13-13 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-13
26.1-13-13. Applicability of general insurance laws
Status: in_force

26.1-13-13. Applicability of general insurance laws

In all respects not specifically provided for in this chapter, county mutual insurance

companies are subject to the provisions of this title relating to insurance companies generally.
N.D. Cent. Code § 26.1-06.2-02 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-02
26.1-06.2-02. Scope
Status: in_force

26.1-06.2-02. Scope

The provisions of this chapter apply to:

1. All domestic insurers.

2. Any other insurer doing business in this state whose state of domicile has asked the

commissioner to apply the provisions of this chapter as regards such insurer.
N.D. Cent. Code § 26.1-33-17 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-17
26.1-33-17. Rulemaking authority relating to variable life contracts
Status: in_force

26.1-33-17. Rulemaking authority relating to variable life contracts

The commissioner may adopt reasonable rules to implement sections 26.1-33-13 through

26.1-33-16.
N.D. Cent. Code § 26.1-17.1-18 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-18
26.1-17.1-18. Officers and employees fidelity bond
Status: in_force

26.1-17.1-18. Officers and employees fidelity bond

1. A prepaid limited health service organization shall maintain in force a fidelity bond in its

own name on its officers and employees in an amount not less than fifty thousand

dollars or in any other amount prescribed by the commissioner. Except as otherwise

provided by this subsection, the bond must be issued by an insurance company that is

licensed to do business in this state or, if the fidelity bond required by this subsection is

not available from an insurance company that holds a certificate of authority in this

state, a fidelity bond procured by a licensed surplus lines insurance producer in this

state shall satisfy the requirements of this subsection.

2. In lieu of the bond specified in subsection 1, a prepaid limited health service

organization may deposit with the commissioner cash or securities or other

investments of the types set forth in section 26.1-17.1-14. Such a deposit must be

maintained in joint custody with the commissioner in the amount and subject to the

same conditions required for a bond under this subsection.