N.D. Cent. Code § 26.1-36.12-12 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-12
26.1-36.12-12. Continuity of care for enrollees
Status: in_force

26.1-36.12-12. Continuity of care for enrollees

1. On receipt of information documenting a prior authorization from the enrollee or from

the enrollee's health care provider, a prior authorization review organization shall

honor a prior authorization granted to an enrollee from a previous prior authorization

review organization for at least the initial sixty days of an enrollee's coverage under a

new policy, provided the health care service for which the enrollee has received prior

authorization is covered under the new policy. To obtain coverage, the enrollee or

health care provider shall submit documentation of the previous prior authorization in

accordance with the procedures in the enrollee's new policy.

2. During the time period described in subsection 1, a prior authorization review

organization may perform its review to grant a prior authorization.

3. If there is a change in coverage of, or approval criteria for, a previously authorized

health care service, the change in coverage or approval criteria does not affect an

enrollee who received prior authorization before the effective date of the change for

the remainder of the enrollee's plan year. This subsection does not apply if a prior

authorization review organization changes coverage terms for a drug or device that

has been:

a. Deemed unsafe by the United States food and drug administration; or

b. Withdrawn by the United States food and drug administration or product

manufacturer.

4. A prior authorization review organization shall continue to honor a prior authorization

the organization has granted to an enrollee if the enrollee changes products under the

same health insurance company provided the health care service for which the

enrollee has received prior authorization is covered under the new policy.
N.D. Cent. Code § 26.1-12-25 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-25
26.1-12-25. Directors and treasurer of mutual insurance company personally liable for not making and collecting assessments
Status: in_force

26.1-12-25. Directors and treasurer of mutual insurance company personally liable for

not making and collecting assessments.

If the directors of any mutual insurance company neglect or omit for the space of six months

to lay, or to use reasonable diligence to collect, any assessment which the board of directors is

required to make, they are liable personally for all debts and claims then outstanding against the

company or that may accrue until the assessment is laid and put in process of collection. If the

treasurer of the company unreasonably neglects to collect an assessment made by order of the

board of directors and to apply the assessment to the payment of the claims for which it was

made, the treasurer is liable personally to the parties having the claims for the amount of the

assessment. The treasurer may repay oneself out of any money afterwards received for the

company on account of the assessment.
N.D. Cent. Code § 26.1-26-27 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-27
26.1-26-27. Approval of examination by commissioner - Contents
Status: in_force

26.1-26-27. Approval of examination by commissioner - Contents

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

the applicant's knowledge as to the lines of insurance, policies, and transactions to be handled

under the license applied for, the duties and responsibilities of the licensee, and the pertinent

insurance laws of this state.
N.D. Cent. Code § 26.1-29-23 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-23
26.1-29-23. Interpretation of representations regarding insurance
Status: in_force

26.1-29-23. Interpretation of representations regarding insurance

A representation is to be interpreted by the general rules of contract interpretation. A

representation as to the future is a promise unless the representation appears that it was merely

a statement of belief or expectation. A representation cannot qualify an express provision in an

insurance contract, but it may qualify an implied warranty.
N.D. Cent. Code § 26.1-36-09.17 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.17
26.1-36-09.17. Out-of-pocket expenses - Prescription drugs
Status: in_force

26.1-36-09.17. Out-of-pocket expenses - Prescription drugs

1. As used in this section:

a. "Cost-sharing" means any coinsurance, copayment, or deductible under a health

benefit plan.

b. "Enrollee" means an individual entitled to prescription drug coverage under a

health benefit plan.

c. "Health benefit plan" has the same meaning as provided under section

26.1-36.3-01.

d. "Prescription drug" means a drug for which a prescription is required:

(1) Without a generic equivalent; or

(2) With a generic equivalent, if the enrollee has obtained access to the drug

through prior authorization, a step therapy protocol, or the heath care

insurer's expectations and appeals process.

2. To the extent permitted by federal law and regulation, an insurer may not deliver,

issue, execute, or renew a health benefit plan providing prescription drug coverage

unless when calculating an enrollee's overall contribution to any out-of-pocket

maximum or any cost-sharing requirement for a prescription drug under the health

benefit plan, the health benefit plan provides for the inclusion of any amount paid by

the enrollee or paid on behalf of the enrollee by another person. The health benefit

plan may not vary the out-of-pocket maximum or cost-sharing requirement, or

otherwise design benefits accounting for the availability of a cost-sharing assistance

program for a prescription drug.

3. If application of this section would result in ineligibility of a health benefit plan that is a

qualified high-deductible health plan to qualify as a health savings account under

section 223 of the Internal Revenue Code [26 U.S.C. 223], the requirements of this

section do not apply with respect to the deductible of the health benefit plan until after

the enrollee has satisfied the minimum deductible under section 26 U.S.C. 223.
N.D. Cent. Code § 26.1-36.6-01 — ND Code / Title 26.1 / Chapter 26.1-36.6 / Section 26.1-36.6-01
26.1-36.6-01. Definitions
Status: in_force

26.1-36.6-01. Definitions

As used in this chapter, "self-insurance health plan" has the same meaning as provided

under section 54-52.1-01.
N.D. Cent. Code § 26.1-02-07 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-07
26.1-02-07. Unauthorized contracts valid
Status: in_force

26.1-02-07. Unauthorized contracts valid

The failure of an insurance company transacting insurance business in this state to obtain a

certificate of authority does not impair the validity of any act or contract of the company and

does not prevent the company from defending any civil action in any court of this state, but a

company transacting insurance business in this state without a certificate of authority may not

maintain a civil action in any court of this state to enforce any right, claim, or demand arising out

of the transaction of insurance business until the company has obtained a certificate of

authority.
N.D. Cent. Code § 26.1-36-39 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-39
26.1-36-39. Effect of policy not conforming to chapter
Status: in_force

26.1-36-39. Effect of policy not conforming to chapter

A policy delivered or issued for delivery to any person in this state in violation of this chapter

is valid but must be construed as provided in this chapter. When any provision in a policy

subject to this chapter is in conflict with this chapter, the rights, duties, and obligations of the

insurer, the insured, and the beneficiary are governed by this chapter.
N.D. Cent. Code § 26.1-47-09 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-09
26.1-47-09. Air ambulances
Status: in_force

26.1-47-09. Air ambulances

1. A health benefit plan may not be issued in this state unless the plan provides the

reimbursement rate for out-of-network air ambulance provider services is equal to the

average of the insurer's in-network rates for air ambulance providers in the state.

2. An insurer may not use the average of an insurer's in-network rates for air ambulance

providers in the state in order to decrease current or future contractual rates between

an insurer and an air ambulance provider.

3. For purposes of settling a claim made by the insured for air ambulance services, a

payment made by an insurer under the plan in compliance with this section is deemed

to be the same as an in-network payment and is considered a full and final payment by

the insured for out-of-network air ambulance services billed to the insured.

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

group or individual basis, which provides coverage limited to:

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

b. Credit;

c. Dental;

d. Disability;

e. Hospital;

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

g. Vision care or any other limited supplemental benefit;

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

rule or coverage under a plan through Medicare;

i. Medicaid;

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

supplement to that coverage;

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

or similar insurance; or

l. Automobile medical payment insurance.
N.D. Cent. Code § 26.1-20.1-06 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-06
26.1-20.1-06. Contents of insurance premium finance agreement
Status: in_force

26.1-20.1-06. Contents of insurance premium finance agreement

1. A premium finance agreement must:

a. Be dated and signed by or on behalf of the insured, and the printed portion of the

agreement must be in at least eight-point type;

b. Contain the name and place of business of the insurance producer negotiating

the related insurance policy, the name and residence or the place of business of

the insured as specified by the insured, the name and place of business of the

insurance premium finance company to which installments or other payments are

to be made, a description of the insurance policies financed, including the term

and type of policy; and

c. Include the following items:

(1) The total amount of the premiums.

(2) The amount of the downpayment.

(3) The amount financed, which is the difference between paragraphs 1 and 2.

(4) The amount of the finance charge and the flat service fee, if any.

(5) The total of the payments, which is the sum of paragraphs 3 and 4.

(6) The number of installments.

2. If additional or subsequent premiums are proposed to be added to an existing

premium finance agreement by an insured resulting from additional premiums required

under policies presently being financed, from a renewal of a policy, or from other

policies owned or purchased by the insured, the premium finance company shall

provide the insured with the proposed revisions to the items in subdivision c of

subsection 1 in writing along with a written invoice or copy of the invoice received from

the insurer or licensed insurance producer which describes the additional premium

proposed to be added to the original contract. The insured shall affirm the proposed

revisions by paying the revised installment or may disaffirm the add-on revisions by

continuing to make the payment called for in the original contract. The premium

finance company may not charge a higher annual percentage rate of interest for the

additional amount than that charged in the original premium finance agreement.
N.D. Cent. Code § 26.1-33.4-07 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-07
26.1-33.4-07. Advertising
Status: in_force

26.1-33.4-07. Advertising

1. A broker or provider licensed pursuant to this chapter may conduct or participate in

advertisements within this state. Advertisements must comply with all advertising and

marketing laws or rules adopted by the commissioner which are applicable to life

insurers or to brokers and providers licensed pursuant to this chapter.

2. Advertisements must be accurate and truthful, and may not be misleading in fact or by

implication.

3. A person or trust may not:

a. Directly or indirectly, market, advertise, solicit, or otherwise promote the purchase

of a policy for the sole purpose of or with an emphasis on settling the policy; or

b. Use the words "free" or "no cost" or words of similar import in the marketing,

advertising, soliciting, or otherwise promoting of the purchase of a policy.
N.D. Cent. Code § 26.1-03-11 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-11
26.1-03-11. Fire companies to report statistical data - Failure to report - Exceptions to reporting requirements - Penalty
Status: in_force

26.1-03-11. Fire companies to report statistical data - Failure to report - Exceptions to

reporting requirements - Penalty.

Each insurance company issuing fire insurance policies covering property in this state

annually shall report information setting forth the amount of earned premiums in this state for

policies covering insured property located in this state and the amount of claims incurred. This

information is not to include personal lines or farm property insurance. This information must be

reported on a form prescribed by the commissioner. The form must accompany the annual

statement required under section 26.1-03-07. An insurance company that fails to furnish the

form on or before March first is subject to a penalty of one hundred dollars per day. The

commissioner may revoke or suspend the certificate of authority of an insurance company that

fails to file the form required in this section. If satisfied the delay was excusable, the insurance

commissioner may waive, and if paid, issue a premium tax credit in an amount up to fifty

percent of the penalty. The insurance commissioner shall deposit in the insurance tax

distribution fund monetary penalties collected under this section.
N.D. Cent. Code § 26.1-17-29 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-29
26.1-17-29. False or misleading information - Penalty
Status: in_force

26.1-17-29. False or misleading information - Penalty

A subscriber under a health service contract or a health service corporation may not willfully

withhold information from, or give false or misleading information to, the commissioner or any

statistical agency designated by the commissioner, when the information given or withheld will

affect the rates or premiums chargeable under this chapter. Any subscriber or corporation who

violates this section is guilty of an infraction.
N.D. Cent. Code § 26.1-38.1-08 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-08
26.1-38.1-08. Duties and powers of the commissioner
Status: in_force

26.1-38.1-08. Duties and powers of the commissioner

In addition to the duties and powers enumerated elsewhere in this chapter:

1. The commissioner shall:

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

of premiums in this and any other appropriate states for each member insurer;

b. When an impairment is declared and the amount of the impairment is determined,

serve a demand upon the impaired insurer to make good the impairment within a

reasonable time; notice to the impaired insurer constitutes notice to its

shareholders, if any; and the failure of the impaired insurer to promptly comply

with such demand does not excuse the association from the performance of its

powers and duties under this chapter; and

c. In any liquidation or rehabilitation proceedings involving a domestic insurer, be

appointed as the liquidator or rehabilitator.

2. The commissioner may suspend or revoke, after notice and hearing, the certificate of

authority to transact business in this state of any member insurer which fails to pay an

assessment when due or fails to comply with the plan of operation. As an alternative,

the commissioner may levy a forfeiture on any member insurer which fails to pay an

assessment when due. Such forfeiture may not exceed five percent of the unpaid

assessment per month, but no forfeiture may be less than one hundred dollars per

month.

3. Any final action of the board of directors or the association may be appealed to the

commissioner by any member insurer if such appeal is taken within sixty days of the

member's receipt of notice of the final action being appealed. Any final action or order

of the commissioner is subject to judicial review in a court of competent jurisdiction in

accordance with the laws of this state which apply to the action or orders of the

commissioner.

4. The liquidator, rehabilitator, or conservator of any impaired or insolvent insurer may

notify any interested persons of the effect of this chapter.
N.D. Cent. Code § 26.1-50-07 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-07
26.1-50-07. Assets of insurers
Status: in_force

26.1-50-07. Assets of insurers

The amount of a loan made by an insurer or the amount of an insurer's participation in a

loan made under this chapter may not be considered or reported on the insurer's annual

statement as an admitted asset except to the extent provided under section 26.1-05-19.
N.D. Cent. Code § 26.1-26-02 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-02
26.1-26-02. Definitions
Status: in_force

26.1-26-02. Definitions

As used in this chapter, unless the context requires otherwise:

1. "Active participation" means:

a. Attendance at a formal meeting of a professional insurance association at which

a formal business program is presented;

b. Service on the board of directors or a formal committee of a professional

insurance association and involvement in the activities of the board or committee;

or

c. Participation in industry, regulatory, or legislative meetings held by or on behalf of

a professional insurance association.

2. "Business entity" means a corporation, association, partnership, limited liability

company, limited liability partnership, or other legal entity.

3. "Home state" means the District of Columbia and any state or territory of the United

States in which an insurance producer maintains the producer's principal place of

residence or principal place of business and is licensed to act as an insurance

producer.

4. "Insurance" means any of the lines of authority in section 26.1-26-11.

5. "Insurance consultant" means a person that, for a fee, holds oneself or itself out to the

public as engaged in the business of offering any advice, counsel, opinion, or service

with respect to the benefits, advantages, or disadvantages promised under any

insurance policy that could be issued in this state.

6. "Insurance producer" means a person required to be licensed under the laws of this

state to sell, solicit, or negotiate insurance.

7. "Insurer" means all types of insurance companies as well as prepaid legal services

organizations and health maintenance organizations.

8. "License" means a document issued by the commissioner authorizing a person to act

as an insurance producer for the lines of authority specified in the document. The

license itself does not create any authority, actual, apparent, or inherent, in the holder

to represent or commit an insurance carrier.

9. "Negotiate" means the act of conferring directly with or offering advice directly to a

purchaser or prospective purchaser of a particular contract of insurance concerning

any of the substantive benefits, terms, or conditions of the contract, provided that the

person engaged in that act either sells insurance or obtains insurance from insurers for

purchasers.

10. "Person" means an individual or a business entity.

11. "Professional insurance association" means a state or national membership

organization that offers courses, lectures, seminars, or other instructional programs

certified by the commissioner as approved continuing education activities pursuant to

section 26.1-26-31.3; is organized as an association or corporation for the express

purpose of promoting the interests of insurance licensees in this state or nationally;

and is based on paid membership renewable annually or biennially for a membership

fee.

12. "Sell" means to exchange a contract of insurance by any means, for money or its

equivalent, on behalf of an insurance company.

13. "Solicit" means attempting to sell insurance or asking or urging a person to apply for a

particular kind of insurance from a particular company.

14. "Surplus lines insurance producer" means a person that sells, solicits, negotiates, or

procures an insurance policy from an insurer not licensed to transact business in this

state which cannot be procured from an insurer licensed to do business in this state.

15. "Terminate" means the cancellation of the relationship between an insurance producer

and the insurer or the termination of a producer's authority to transact insurance.

16. "Uniform application" means the current version of the national association of

insurance commissioners uniform application for resident and nonresident insurance

producer licensing.

17. "Uniform business entity application" means the current version of the national

association of insurance commissioners uniform business entity application for

resident and nonresident business entities.
N.D. Cent. Code § 26.1-10.3-01 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-01
26.1-10.3-01. Definitions
Status: in_force

26.1-10.3-01. Definitions

As used in this chapter:

1. "Corporate governance annual disclosure" means a confidential report filed by the

insurer or insurance group made in accordance with the requirements of this chapter.

2. "Insurance group" means those insurers and affiliates included within an insurance

holding company system as defined in chapter 26.1-10.

3. "Insurer" has the meaning provided in section 26.1-10-01.

4. "Own risk and solvency assessment summary report" means the report filed in

accordance with chapter 26.1-10.2.
N.D. Cent. Code § 26.1-12.1-03 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-03
26.1-12.1-03. Mutual insurance holding company - Merger
Status: in_force

26.1-12.1-03. Mutual insurance holding company - Merger

A domestic mutual insurance company, upon the approval of the commissioner, may

reorganize by merging its policyholders' member interests into a mutual insurance holding

company formed according to section 26.1-12.1-02 and continuing the corporate existence of

the reorganizing insurer as a stock insurance company subsidiary of the mutual insurance

holding company. The commissioner, if satisfied that the reorganization meets the standards in

section 26.1-12.1-06, may approve the proposed merger or may require as a condition of

approval the modification of the proposed merger as the commissioner finds necessary for the

merger to meet the standards in section 26.1-12.1-06. The commissioner shall retain jurisdiction

over the mutual insurance holding company and the reorganized insurer organized according to

this section to assure that the policyholders' and members' interests are protected.

All of the initial shares of the capital stock of the reorganized insurance company must be

issued to the mutual insurance holding company, or to an intermediate stock holding company

that is wholly owned by the mutual insurance holding company. The membership interests of the

policyholders of the reorganizing insurer must be converted into membership interests in the

mutual insurance holding company. Policyholders of the reorganized insurance company must

become members of the mutual insurance holding company according to the articles of

incorporation and bylaws of the mutual insurance holding company. A merger as contemplated

by this section is not subject to chapter 26.1-07.
N.D. Cent. Code § 26.1-36.7-01 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-01
26.1-36.7-01. Definitions
Status: in_force

26.1-36.7-01. Definitions

For purposes of this chapter, unless the context otherwise requires:

1. "Association" means the reinsurance association of North Dakota.

2. "Board" means the board of directors of the reinsurance association of North Dakota.

3. "Earned group health benefit plan premiums" means premium owed to an insurer for a

period of time during which the insurer has been liable to cover claims for an insured

pursuant to the terms of a group health benefit plan issued by the insurer.

4. "Future losses" means reserves for claims incurred but not reported.

5. "Group health benefit plan" means a health benefit plan offered through an employer,

or an association of employers, to more than one individual employee.

6. "Health benefit plan" means any hospital and medical expense-incurred policy or

certificate, nonprofit health care service plan contract, health maintenance

organization subscriber contract, or any other health care plan or arrangement that

pays for or furnishes benefits that pay the costs of or provide medical, surgical, or

hospital care.

a. "Health benefit plan" does not include any one or more of the following:

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

combination of the two;

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

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

liability insurance;

(4) Workforce safety and insurance or similar workers' compensation insurance;

(5) Automobile medical payment insurance;

(6) Credit-only insurance;

(7) Coverage for onsite medical clinics;

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

which benefits for medical care are secondary or incidental to other

insurance benefits; and

(9) Self-funded plans.

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

provided under a separate policy, certificate, or contract of insurance or are

otherwise not an integral part of the plan:

(1) Limited scope dental or vision benefits;

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

community-based care, or any combination of this care; and

(3) Other similar limited benefits specified under federal regulations issued

under the federal Health Insurance Portability and Accountability Act of 1996

[Pub. L. 104-191; 110 Stat. 1936; 29 U.S.C. 1181 et seq.].

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

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

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

under any group health insurance coverage maintained by the same plan

sponsor, and the benefits are paid with respect to an event without regard to

whether benefits are provided with respect to such an event under any group

health plan maintained by the same sponsor:

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

(2) Hospital indemnity or other fixed indemnity insurance.

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

certificate, or contract of insurance:

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

of the federal Social Security Act [42 U.S.C. 13295ss(g)(1)];

(2) Coverage supplemental to the coverage provided under chapter 55 of

United States Code title 10 [10 U.S.C. 1071 et seq.] relating to armed forces

medical and dental care; and

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

7. "Individual health benefit plan" means a health benefit plan offered to individuals, other

than in connection with a group health benefit plan. The term does not include an

individual short-term limited-duration plan or association short-term limited-duration

plan as defined by section 26.1-36.8-01.

8. "Insured" means an individual who is insured by a health benefit plan.

9. "Insurer" means an entity authorized to write health benefit plans or that provides

health benefit plans in the state. The term includes an insurance company as defined

in section 26.1-02-01, a nonprofit health service organization, a fraternal benefit

society, and a health maintenance organization.

10. "Member insurer" means an insurer that offers individual health benefit plans and is

actively marketing individual health benefit plans in this state.
N.D. Cent. Code § 26.1-19-02 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-02
26.1-19-02. Definitions
Status: in_force

26.1-19-02. Definitions

As used in this chapter:

1. "Evidence of coverage" means any certificate, agreement, or contract issued to a

participant setting out the coverage to which the participant is entitled.

2. "Legal services" means any services normally provided by or at the direction of an

attorney.

3. "Participant" means an individual who is enrolled in a prepaid legal services plan.

4. "Prepaid legal services organization" means any person who undertakes to provide an

arrangement for one or more legal service plans.

5. "Prepaid legal services plan" means any arrangement whereby any person undertakes

to provide, arrange for, pay for, reimburse, or indemnify on a prepaid basis all or part of

the cost of legal services and related expenses and court costs incurred in the

exercise of any legal right, but not including payment of fines, penalties, judgments, or

assessments.

6. "Provider" means any attorney licensed or otherwise authorized to practice law in this

state.
N.D. Cent. Code § 26.1-02-05 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-05
26.1-02-05. Unauthorized insurance prohibited - Exceptions
Status: in_force

26.1-02-05. Unauthorized insurance prohibited - Exceptions

An insurance company may not transact insurance business in this state, as set forth in

section 26.1-02-06, without a certificate of authority from the commissioner. This section does

not apply to:

1. The lawful transaction of surplus lines insurance.

2. The lawful transaction of reinsurance by insurers.

3. Transactions involving a policy lawfully solicited, written, and delivered outside of this

state covering only subjects of insurance not resident, located, or expressly to be

performed in this state at the time of issuance, and which transactions are subsequent

to the issuance of such policy.

4. Transactions involving life insurance, health insurance, or annuities provided to

educational or religious or charitable institutions organized and operated without profit

to any private shareholder or individual, for the benefit of the institutions and

individuals engaged in the service of the institutions.

5. Attorneys acting in the ordinary relation of attorney and client in the adjustment of

claims or losses.

6. Transactions involving group life, accident, and health, or blanket accident and health

insurance, or group annuities if the master policy of the group was lawfully issued and

delivered in and pursuant to the laws of a state in which the insurance company was

authorized to do an insurance business, to a group organized for purposes other than

the procurement of insurance, and where the policyholder is domiciled or otherwise

has a bona fide situs.

7. Transactions involving any insurance policy or annuity contract issued before July 1,

1973.

8. Transactions relative to a policy issued or to be issued outside this state involving

insurance on vessels, craft or hulls, cargoes, marine builder's risk, marine protection

and indemnity or other risk, including strikes and war risks commonly insured under

ocean or wet marine forms of policy.

9. Transactions involving insurance contracts issued to one or more industrial insureds;

provided, that this does not relieve an industrial insured from taxation imposed upon

independently procured insurance. An industrial insured is an insured:

a. Which procures the insurance of any risk or risks other than life and annuity

contracts by use of the services of a full-time employee acting as an insurance

manager or buyer or the services of a regularly and continuously retained

qualified insurance consultant;

b. Whose aggregate annual premiums for insurance on all risks total at least

twenty-five thousand dollars; and

c. Which has at least twenty-five full-time employees.

10. Transactions involving insurance contracts covering a large commercial risk as defined

in section 26.1-25-02.1, provided an industrial insured is not relieved from taxation

imposed upon independently procured insurance.
N.D. Cent. Code § 26.1-26.4-01 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-01
26.1-26.4-01. Purpose and scope
Status: in_force

26.1-26.4-01. Purpose and scope

This chapter applies to grandfathered health plans unless a health care insurer or utilization

review agent determines to extend the protections of section 26.1-36-47 to a grandfathered

plan. "Grandfathered health plan" has the meaning stated in the Patient Protection and

Affordable Care Act [Pub. L. 111-148], as amended by the Health Care and Education

Reconciliation Act of 2010 [Pub. L. 111-152]. The purpose of this chapter is to:

1. Promote the delivery of quality health care in a cost-effective manner;

2. Assure that utilization review agents adhere to reasonable standards for conducting

utilization review;

3. Foster greater coordination and cooperation between health care providers and

utilization review agents;

4. Improve communications and knowledge of benefits among all parties concerned

before expenses are incurred; and

5. Ensure that utilization review agents maintain the confidentiality of medical records in

accordance with applicable laws.
N.D. Cent. Code § 26.1-03-11.3 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-11.3
26.1-03-11.3. Confidentiality
Status: in_force

26.1-03-11.3. Confidentiality

The commissioner shall maintain, as confidential, any confidential documents or information

received from the national association of insurance commissioners or state, federal, or

international regulatory or law enforcement officials of this state and other states or jurisdictions.

The information may not be disclosed by the department and is exempt from section 44-04-18.

The commissioner may share information that is confidential under the laws of this state with the

national association of insurance commissioners and with state, federal, or international

regulatory or law enforcement officials from this state and other states or jurisdictions providing

that the officials are required, under their law, to maintain its confidentiality.
N.D. Cent. Code § 26.1-30-06 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-06
26.1-30-06. Insurance by agent or trustee may be designated in policy
Status: in_force

26.1-30-06. Insurance by agent or trustee may be designated in policy

When an insurance is made by an agent or trustee, the fact that the principal or beneficiary

is the person actually insured may be indicated by designation of the agent or trustee or by

other general words in the insurance policy.
N.D. Cent. Code § 26.1-22-10.2 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-10.2
26.1-22-10.2. School district - Leased property - Insurability
Status: in_force

26.1-22-10.2. School district - Leased property - Insurability

Expired under S.L. 2015, ch. 155, § 6.
N.D. Cent. Code § 26.1-40.1-10 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-10
26.1-40.1-10. Proof of insurance
Status: in_force

26.1-40.1-10. Proof of insurance

A participating driver of a transportation network company shall carry proof of transportation

network company insurance coverage at all times during the driver's use of a vehicle in

connection with a transportation network company's online-enabled application or platform. In

the event of an accident, a participating driver shall provide this insurance coverage information

to any other party involved in the accident and to a police officer, upon request.
N.D. Cent. Code § 26.1-17-30 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-30
26.1-17-30. Investment of funds
Status: in_force

26.1-17-30. Investment of funds

The funds of any health service corporation may be invested only in those investments

authorized to be made by domestic insurance companies of this state. Investments made prior

to July 1, 1983, are subject to the requirements for authorized investments prior to July 1, 1983,

and not to the requirements for authorized investments after July 1, 1983.
N.D. Cent. Code § 26.1-46-11 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-11
26.1-46-11. Duty of insurance producers to obtain license
Status: in_force

26.1-46-11. Duty of insurance producers to obtain license

Any person acting, or offering to act, as an insurance producer for a risk retention group or

purchasing group, which solicits members, sells insurance coverage, purchases coverage for its

members located within the state, or otherwise does business in this state, shall, before

commencing any such activity, obtain a license from the commissioner. This section does not

apply to any person acting as an insurance producer for a risk retention group doing business in

this state which has fewer than twenty-six resident members or insureds.
N.D. Cent. Code § 26.1-33-38 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-38
26.1-33-38. Measure of indemnity in life policy
Status: in_force

26.1-33-38. Measure of indemnity in life policy

Unless the interest of a person insured is susceptible of exact pecuniary measurement, the

measure of indemnity under a life insurance policy is the sum fixed in the policy.
N.D. Cent. Code § 26.1-14-08 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-08
26.1-14-08. Rates and rate filing
Status: in_force

26.1-14-08. Rates and rate filing

The rates and premiums to be charged for insurance by the company are subject to chapter

26.1-25 except that the commissioner may not disapprove or terminate the effectiveness of any

rate filing made by or on behalf of the company on the grounds that the rates or premiums are

excessive.
N.D. Cent. Code § 26.1-40.2-03 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-03
26.1-40.2-03. Insurance requirements - Delivery network companies and delivery network company drivers
Status: in_force

26.1-40.2-03. Insurance requirements - Delivery network companies and delivery

network company drivers.

1. A delivery network company shall ensure that during the delivery available period, if it

applies, and during the delivery service period, primary automobile liability insurance is

in place which recognizes the driver is a delivery network driver or that does not

exclude coverage for use of a personal vehicle to provide deliveries.

2. During the delivery service period and delivery available period, the delivery network

driver, delivery network company, or any combination of the two shall maintain:

a. Insurance that insures the driver for liability to third parties of not less than fifty

thousand dollars for damages arising out of bodily injury sustained by any one

person in an accident, of not less than one hundred thousand dollars for

damages arising out of bodily injury sustained by all persons injured in an

accident, and of not less than twenty-five thousand dollars for all damages arising

out of damage to or destruction of property in an accident;

b. Uninsured motorist coverage under section 26.1-40-15.2;

c. Underinsured motorist coverage under section 26.1-40-15.3; and

d. Personal injury protection under chapter 26.1-41.

3. If the insurance coverage maintained by a delivery network driver under subsections 1

and 2 has lapsed or does not provide the required coverage, insurance maintained by

the delivery network company must provide the coverage required by subsections 1

and 2 beginning with the first dollar of a claim and the insurance maintained by the

delivery network company has the duty to defend the claim.

4. Coverage under an automobile insurance policy maintained by the delivery network

company may not be dependent on another motor vehicle liability insurer first denying

a claim, or on another motor vehicle liability insurance policy being required to first

deny a claim.

5. Insurance coverage required by this section may be obtained from an insurance

company duly licensed to transact business under title 26.1 or by an eligible surplus

lines broker.

6. During a claim coverage investigation, a delivery network company or a delivery

network company's insurer shall cooperate with all insurers involved in the claim

coverage investigation to facilitate the exchange of information and shall immediately

provide upon request by directly involved parties or any insurer the precise times a

delivery network driver began and ended the delivery available period and delivery

service period on the delivery network company's digital network in the twelve-hour

period immediately preceding the accident and in the twelve-hour period immediately

following the accident. An insurer potentially providing the coverage required in this

section shall disclose upon request by any other insurer involved in the particular

claim, the applicable coverages, exclusions, and limits provided under any automobile

insurance maintained to satisfy the requirements of this section.

7. The insurer of a delivery network company providing coverage under subsections 1

and 2 shall assume primary liability for a claim when a dispute exists as to when the

delivery available period and the delivery service period began or ended and the

delivery network company does not have available, did not retain, or fails to provide

the information required by subsection 6.
N.D. Cent. Code § 26.1-06.2-07 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-07
26.1-06.2-07. Administrative election of proceedings
Status: in_force

26.1-06.2-07. Administrative election of proceedings

Nothing contained in this chapter precludes the commissioner from initiating judicial

proceedings to place an insurer in conservation, rehabilitation, or liquidation proceedings or

other delinquency proceedings, however designated under the laws of this state, regardless of

whether the commissioner has previously initiated administrative supervision proceedings under

this chapter against the insurer.
N.D. Cent. Code § 26.1-06.1-57 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-57
26.1-06.1-57. Interstate priorities
Status: in_force

26.1-06.1-57. Interstate priorities

1. In a liquidation proceeding in this state involving one or more reciprocal states, the

order of distribution of the domiciliary state shall control as to all claims of residents of

this and reciprocal states. All claims of residents of reciprocal states must be given

equal priority of payment from general assets regardless of where such assets are

located.

2. The owners of special deposit claims against an insurer for which a liquidator is

appointed in this or any other state must be given priority against the special deposits

in accordance with the statutes governing the creation and maintenance of the

deposits. If there is a deficiency in any deposit, so that the claims secured by it are not

fully discharged from it, the claimants may share in the general assets, but the sharing

must be deferred until general creditors, and claimants against other special deposits

who have received smaller percentages from their respective special deposits, have

been paid percentages of their claims equal to the percentage paid from the special

deposit.

3. The owner of a secured claim against an insurer for which a liquidator has been

appointed in this or any other state may surrender the security and file a claim as a

general creditor, or the claim may be discharged by resort to the security in

accordance with section 26.1-06.1-40, in which case the deficiency, if any, must be

treated as a claim against the general assets of the insurer on the same basis as

claims of unsecured creditors.
N.D. Cent. Code § 26.1-25.1-08 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-08
26.1-25.1-08. Indemnification
Status: in_force

26.1-25.1-08. Indemnification

An insurer shall indemnify, defend, and hold agents harmless from and against all liability,

fees, and costs arising out of or relating to the actions, errors, or omissions of a producer who

obtains or uses credit information or insurance scores for an insurer, provided the producer

follows the instructions of or procedures established by the insurer and complies with any

applicable law or rule. This section does not provide a consumer or other insured with a cause

of action that does not exist in the absence of this section.
N.D. Cent. Code § 26.1-36.7-02 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-02
26.1-36.7-02. Waiver proposal and application
Status: in_force

26.1-36.7-02. Waiver proposal and application

1. The commissioner may develop a proposal for an 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.].

2. On behalf of the state, in accordance with the proposal developed under subsection 1,

the commissioner may submit an application to the United States department of health

and human services and to the United States secretary of the treasury. The

commissioner may implement any federally approved waiver.

3. The commissioner may develop an amendment for an 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.].
N.D. Cent. Code § 26.1-33-31 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-31
26.1-33-31. Approval of life policy forms
Status: in_force

26.1-33-31. Approval of life policy forms

A policy form meeting the requirements of subsection 1 of section 26.1-33-30 must be

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

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

entitled to under such laws.
N.D. Cent. Code § 26.1-36-09.15 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.15
26.1-36-09.15. Coverage of telehealth services
Status: in_force

26.1-36-09.15. Coverage of telehealth services

1. As used in this section:

a. "Distant site" means a site at which a health care provider or health care facility is

located while providing medical services by means of telehealth.

b. "E-visit" means a face-to-face digital communication initiated by a patient to a

provider through the provider's online patient portal.

c. "Health care facility" means any office or institution at which health services are

provided. The term includes hospitals; clinics; ambulatory surgery centers;

outpatient care facilities; nursing homes; nursing, basic, long-term, or assisted

living facilities; laboratories; and offices of any health care provider.

d. "Health care provider" includes an individual licensed under chapter 43-05, 43-06,

43-12.1 as a registered nurse or as an advanced practice registered nurse,

43-13, 43-15, 43-17, 43-26.1, 43-28, 43-32, 43-37, 43-40, 43-41, 43-42, 43-44,

43-45, 43-47, 43-58, or 43-60.

e. "Nonpublic facing product" means a remote communication product that, as a

default, allows only the intended parties to participate in the communication.

f. "Originating site" means a site at which a patient is located at the time health

services are provided to the patient by means of telehealth.

g. "Policy" means an accident and health insurance policy, contract, or evidence of

coverage on a group, individual, blanket, franchise, or association basis.

h. "Secure connection" means a connection made using a nonpublic facing remote

communication product that employs end-to-end encryption, and which allows

only an individual and the person with whom the individual is communicating to

see what is transmitted.

i. "Store-and-forward technology" means electronic information, imaging, and

communication that is transferred, recorded, or otherwise stored in order to be

reviewed at a distant site at a later date by a health care provider or health care

facility without the patient present in real time. The term includes telehome

monitoring and interactive audio, video, and data communication.

j. "Telehealth":

(1) Means the use of interactive audio, video, or other telecommunications

technology that is used by a health care provider or health care facility at a

distant site to deliver health services at an originating site and that is

delivered over a secure connection that complies with the requirements of

state and federal laws.

(2) Includes the use of electronic media for consultation relating to the health

care diagnosis or treatment of a patient in real time or through the use of

store-and-forward technology.

(3) Does not include the use of electronic mail, facsimile transmissions, or

audio-only telephone unless for the purpose of e-visits or a virtual check-in.

k. "Virtual check-in" means a brief communication via telephone or other

telecommunications device to decide whether an office visit or other service is

needed.

2. An insurer may not deliver, issue, execute, or renew a policy that provides health

benefits coverage unless that policy provides coverage for health services delivered by

means of telehealth which is the same as the coverage for health services delivered

by in-person means.

3. Payment or reimbursement of expenses for covered health services delivered by

means of telehealth under this section may be established through negotiations

conducted by the insurer with the health services providers in the same manner as the

insurer establishes payment or reimbursement of expenses for covered health

services that are delivered by in-person means.

4. Coverage under this section may be subject to deductible, coinsurance, and

copayment provisions.

5. This section does not require:

a. A policy to provide coverage for health services that are not medically necessary,

subject to the terms and conditions of the policy;

b. A policy to provide coverage for health services delivered by means of telehealth

if the policy would not provide coverage for the health services if delivered by

in-person means;

c. A policy to reimburse a health care provider or health care facility for expenses for

health services delivered by means of telehealth if the policy would not reimburse

that health care provider or health care facility if the health services had been

delivered by in-person means; or

d. A health care provider to be physically present with a patient at the originating site

unless the health care provider who is delivering health services by means of

telehealth determines the presence of a health care provider is necessary.
N.D. Cent. Code § 26.1-13-11 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-11
26.1-13-11. Annual meeting - Quorum
Status: in_force

26.1-13-11. Annual meeting - Quorum

The annual meeting of a county mutual insurance company must be held following notice of

a prescribed date, time, and place unless notice is provided otherwise in the bylaws of the

company. Twenty members constitute a quorum for the transaction of business at an annual

meeting.
N.D. Cent. Code § 26.1-29-12 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-12
26.1-29-12. Effect of change in insurable interest
Status: in_force

26.1-29-12. Effect of change in insurable interest

A change of interest in any part of a thing insured, unaccompanied by a corresponding

change of interest in the insurance, suspends the insurance to an equivalent extent until the

interest in the thing insured and the interest in the insurance are vested in the same person,

except as follows:

1. In the cases of life, accident, and health insurance.

2. A change of interest in a thing insured after the occurrence of an injury which results in

a loss does not affect the right of the insured to indemnity for the loss.

3. A change of interest in one or more of several distinct things insured by one policy

does not avoid the insurance as to the others.

4. A change of interest by will or succession on the death of the insured does not avoid

an insurance, and the decedent's interest in the insurance passes to the person taking

the decedent's interest in the thing insured.

5. A transfer of interest by one of several partners, joint owners, or owners in common

who are insured jointly to the others does not avoid an insurance even though it has

been agreed that the insurance shall cease upon an alienation of the thing insured.

6. The encumbering of one or more of several distinct things insured by one policy does

not render void any insurance upon the things not covered by the encumbrance, but in

case of loss or damage, such an amount must be deducted from the insurance as the

value of the property so encumbered bears to the value of all the property covered by

the policy.

Any agreement to waive subsection 3 or 6 is void.
N.D. Cent. Code § 26.1-36-37 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-37
26.1-36-37. Nursing home policy - Guaranteed renewable for life - Limitation on pre-existing conditions
Status: repealed

26.1-36-37. Nursing home policy - Guaranteed renewable for life - Limitation on

pre-existing conditions.

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-47-12 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-12
26.1-47-12. Ambulance insurance coverage - Direct payment required - Determination of reimbursement rate for out-of-network ambulance service providers
Status: in_force

26.1-47-12. Ambulance insurance coverage - Direct payment required - Determination

of reimbursement rate for out-of-network ambulance service providers.

1. As used in this section:

a. "Ambulance service provider" means a service entity licensed under chapter

23-27 as a basic life support or advanced life support ambulance service. The

term does not include an air ambulance provider.

b. "Covered person" means an individual eligible to receive coverage of covered

services by a health care insurer under a health benefit plan.

c. "Covered services" means medically necessary patient care or transportation

provided by ambulance service providers.

d. "Health care insurer" means an entity subject to state insurance regulation that

provides health benefit coverage in this state. The term includes:

(1) An insurance company;

(2) A health maintenance organization;

(3) A hospital or medical service corporation; and

(4) A risk-based provider organization.

e. "Medicare reimbursement rate" means the reimbursement rate for a particular

health care service provided under the Health Insurance for the Aged and

Disabled Act, title XVIII of the federal Social Security Act of 1965 [42 U.S.C.

1395 et seq.], as amended.

2. All reimbursements made by a health care insurer for the provision of ambulance

services to a covered person must be paid directly to the ambulance service provider

or the provider's designee.

3. If a covered person receives ambulance services from an out-of-network ambulance

service provider, the health care insurer shall pay the ambulance service provider the

lesser of:

a. Two hundred fifty percent of the Medicare reimbursement rate for the same

service in the same geographic area; or

b. The ambulance provider's billed charges.

4. Any rate the health care insurer pays under this section may not be required to include

the coinsurance, copayment, and deductible owed or already paid by the covered

person.

5. The insurance commissioner may adopt rules to implement and enforce this section.
N.D. Cent. Code § 26.1-21-18 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-18
26.1-21-18. Action against a public official - Reporting defaulting official to governor
Status: in_force

26.1-21-18. Action against a public official - Reporting defaulting official to governor

If the office determines the interests of the fund are jeopardized by the misconduct or

inefficiency of any public official, the office may bring an action against the public official to

require complete disclosure of the business of the state agency or political subdivision of which

the public official is an incumbent. The action must be brought in the name of the office as

plaintiff, and the court in the action may interplead all concerned parties.
N.D. Cent. Code § 26.1-39-13 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-13
26.1-39-13. Notification and reasons for cancellation of property and casualty policies
Status: in_force

26.1-39-13. Notification and reasons for cancellation of property and casualty

policies.

1. After coverage has been in effect for more than sixty days or after the effective date of

a renewal policy, a notice of cancellation may not be issued unless it is based upon at

least one of the following reasons:

a. Nonpayment of premium.

b. Discovery of fraud or material misrepresentation and the procurement of the

insurance or with respect to any claims submitted thereunder.

c. Discovery of willful or reckless acts or omissions on the part of the named insured

which increase any hazard insured against.

d. The occurrence of a change in the risk which substantially increases any hazard

insured against after insurance coverage has been issued or renewed.

e. A violation of any local fire, health, safety, building, or construction regulation or

ordinance with respect to any insured property or the occupancy thereof which

substantially increases any hazard insured against.

f. A determination by the commissioner that the continuation of the policy would

place the insurer in violation of the insurance laws of this state.

g. Conviction of the named insured of a crime having as one of its necessary

elements an act increasing any hazard insured against.

2. A written notice of cancellation must be mailed or delivered to the named insured, at

the last-known address of the named insured, at least thirty days before the effective

date of cancellation or when the cancellation is for nonpayment of premium at least ten

days before the effective date of cancellation. Conclusive proof of mailing and receipt

on the third calendar day after the mailing of the notice is established if the insurer

produces:

a. A United States postal service certificate of mailing to the named insured at the

insured's last-known address; or

b. Proof or acknowledgment of United States postal service mailing to the named

insured at the insured's last-known address using:

(1) IMb tracing; or

(2) A similar method of first-class mail tracking which identifies the named

insured, the insured's last-known address, and the date of mailing.
N.D. Cent. Code § 26.1-12-06 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-06
26.1-12-06. Bylaws of mutual company - Meetings - Notice - Quorum
Status: in_force

26.1-12-06. Bylaws of mutual company - Meetings - Notice - Quorum

The bylaws of any mutual insurance company organized under this chapter must prescribe

the manner of notification to members of all corporation meetings of members and must

prescribe what constitutes a quorum of members. A quorum is those members present in

person or represented by written proxies. A majority of those voting is sufficient to approve or

reject any proposal submitted at any annual or special meeting. Every member of the company

is entitled to one vote only. Every member must be notified of the time and place of the holding

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

certificate of renewal. In addition, a notice of any annual or special meeting must be published in

the official newspaper of the county in which the principal office of the company is located. The

notice must be published at least twice, the first publication to be made at least sixty days

before the meeting. If a special meeting of members is called, a notice of the time, place, and

object of the meeting must be mailed to all members at least sixty days before the meeting.
N.D. Cent. Code § 26.1-06-06 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-06
26.1-06-06. Offenses punishable by the commissioner - Penalty
Status: in_force

26.1-06-06. Offenses punishable by the commissioner - Penalty

The commissioner, by order entered after a hearing on notice duly served on the defendant

not less than thirty days before the date of the hearing, if it is proved that the defendant has

knowingly made any misrepresentation of a material fact for the purpose of inducing the

commissioner to take any action or to refrain from taking action, or has violated this chapter, or

any order of the commissioner issued pursuant to this chapter, may impose a penalty not

exceeding five thousand dollars.
N.D. Cent. Code § 26.1-12-07 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-07
26.1-12-07. Amendment of articles of incorporation - Amendment of bylaws - Extension of corporate existence
Status: repealed

26.1-12-07. Amendment of articles of incorporation - Amendment of bylaws -

Extension of corporate existence.

The articles of incorporation of a mutual insurance company organized under this chapter

may be amended, its term of corporate existence extended, and its bylaws adopted, amended,

or repealed at any annual meeting of the company, or at any special meeting called for that

purpose, by the affirmative vote of two-thirds of the members voting on the proposition.
N.D. Cent. Code § 26.1-44-02 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-02
26.1-44-02. Duty to file evidence of insurance
Status: in_force

26.1-44-02. Duty to file evidence of insurance

1. Each surplus lines producer, after the placing of any surplus lines insurance if the

insured's home state is this state, shall execute and file a report of placement, no later

than March first for the quarter ending the preceding December thirty-first, June first

for the quarter ending the preceding March thirty-first, September first for the quarter

ending the preceding June thirtieth, and December first for the quarter ending the

preceding September thirtieth of each year, regarding the insurance which must be

kept confidential by the commissioner. The report of placement must include:

a. The name and address of the insured;

b. The identity of the insurer or insurers;

c. The amount of premium charged for the insurance;

d. The amount of premium tax; and

e. Any other pertinent information as the commissioner may reasonably require.

2. A surplus lines producer seeking to place nonadmitted insurance for an exempt

commercial purchaser is not required to make a due diligence search if the surplus

lines producer has disclosed to the exempt commercial purchaser that such insurance

may or may not be available from the admitted market that may provide greater

protection with more regulatory oversight and the exempt commercial purchaser has

subsequently requested in writing the surplus lines producer to procure or place such

insurance from a nonadmitted insurer.
N.D. Cent. Code § 26.1-30-09 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-09
26.1-30-09. Agreement not to transfer claim on policy is void
Status: in_force

26.1-30-09. Agreement not to transfer claim on policy is void

An agreement made before a loss occurs that the insured will not transfer any claim that

might arise on the insurance policy is void.
N.D. Cent. Code § 26.1-20.1-09 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-09
26.1-20.1-09. Cancellation of insurance contract upon default
Status: in_force

26.1-20.1-09. Cancellation of insurance contract upon default

If a premium finance agreement contains a power of attorney or other authority enabling the

insurance premium finance company to cancel any insurance policy listed in the premium

finance agreement, an insurance policy may be canceled by the insurance premium finance

company as follows:

1. The insurance premium finance company shall mail to the insured and to the

insurance producer indicated on the premium finance agreement at least ten days'

written notice of the insurance premium finance company's intent to cancel the

insurance policy unless the default is cured prior to the date stated in the notice. If the

default is not cured by the date specified in the notice, the insurance premium finance

company may cancel on behalf of the insured by mailing to the insurer written notice of

the cancellation. The insurance policy must be canceled as if the notice of cancellation

had been submitted by the insured, but without requiring the return of the insurance

policy. The notice may be mailed by the insurance premium finance company to the

insurer at the address on the premium finance agreement or on file with the

commissioner. The insurance premium finance company shall also mail a notice of

cancellation to the insured at the insured's last-known address and to the insurance

producer indicated on the premium finance agreement.

2. If statutory, regulatory, or contractual restrictions provide that an insurance policy may

not be canceled unless notice is given to a governmental agency, mortgagee, or other

third party, the insurer shall give the prescribed notice on behalf of itself or the insured

to the governmental agency, mortgagee, or other third party within a reasonable time

after the insurer receives the notice of cancellation from the insurance premium

finance company. The insurance policy must be continued beyond the date of

cancellation requested by the premium finance company until the date specified by the

insurance company in the prescribed notice.
N.D. Cent. Code § 26.1-22-20 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-20
26.1-22-20. Replacement of policies
Status: repealed

26.1-22-20. Replacement of policies

Repealed by S.L. 1989, ch. 357, § 3.
N.D. Cent. Code § 26.1-47-02.1 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-02.1
26.1-47-02.1. Fees for dental services - Prohibition
Status: in_force

26.1-47-02.1. Fees for dental services - Prohibition

1. As used in this section, "covered services" means dental care services for which a

reimbursement is available under an enrollee's plan or for which a reimbursement

would be available but for the application of a deductible, copayment, coinsurance,

waiting period, annual or lifetime maximum, or frequency limitation.

2. Except for fees for covered services, a preferred provider arrangement for a dental

plan may not directly or indirectly set or otherwise regulate the fees charged by the

preferred provider for dental care services.

3. A preferred provider arrangement may not restrict a covered person from receiving or

paying for additional dental care services that were denied by the covered person's

dental plan.

4. Unless disclosed to the covered person before receiving dental care, a covered person

receiving or paying for additional dental care services described in subsection 3 may

not be charged a rate in excess of the preferred provider arrangement's contracted

rate for covered services.
N.D. Cent. Code § 26.1-53.1-16 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-16
26.1-53.1-16. Provider agreements
Status: in_force

26.1-53.1-16. Provider agreements

1. A discount plan organization must have a written provider agreement with all providers

offering medical or ancillary services to the organization's members. The written

provider agreement may be entered directly with the provider or indirectly with a

provider network to which the provider belongs.

2. A provider agreement between a discount plan organization and a provider must

provide the following:

a. A list of the medical or ancillary services and products to be provided at a

discount;

b. The amount or amounts of the discounts or, alternatively, a fee schedule that

reflects the provider's discounted rates; and

c. That the provider will not charge members more than the discounted rates.

3. A provider agreement between a discount plan organization and a provider network

must require that the provider network have written agreements with the provider

network's providers which:

a. Contain the provisions described in subsection 2;

b. Authorize the provider network to contract with the discount plan organization on

behalf of the provider; and

c. Require the provider network to maintain an up-to-date list of the provider

network's contracted providers and to provide the list on a monthly basis to the

discount plan organization.

4. A provider agreement between a discount plan organization and an entity that

contracts with a provider network must require that the entity, in the entity's contract

with the provider network, require the provider network to have written agreements

with the provider network's providers which comply with subsection 3.

5. The discount plan organization shall maintain a copy of each active provider

agreement into which the organization has entered.
N.D. Cent. Code § 26.1-13-07 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-07
26.1-13-07. Directors - Number - Election - Powers and duties
Status: in_force

26.1-13-07. Directors - Number - Election - Powers and duties

The general management of the business of a county mutual insurance company must be

vested in a board of directors consisting of no fewer than five members nor more than fifteen

members. The members of the board must be elected by the members of the company at the

annual meeting in the manner provided by the bylaws of the company. As nearly as may be,

one-third of the members of the first board must be elected for one year, one-third for two years,

and one-third for three years, and in all future elections, except in the case of elections to fill

vacancies on the board, members must be elected for terms of three years. Each director holds

office until a successor is elected and qualified. In the election of the members of the first board,

each incorporator is entitled to one vote, and at every subsequent election each member of the

company is entitled to one vote per policy. The board may exercise the usual powers and shall

perform the usual duties of a board of directors of a corporation generally.
N.D. Cent. Code § 26.1-17-11 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-11
26.1-17-11. Applicability of portion of Nonprofit Corporation Act
Status: in_force

26.1-17-11. Applicability of portion of Nonprofit Corporation Act

Unless in conflict with this chapter, chapter 10-33 applies to the incorporation, operation,

and control of any nonprofit health service corporation.
N.D. Cent. Code § 26.1-36-26 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-26
26.1-36-26. Dual choice option on group health coverage - Minimum conditions - Transfer of coverage
Status: in_force

26.1-36-26. Dual choice option on group health coverage - Minimum conditions -

Transfer of coverage.

If an existing or prospective employer group desires a dual choice option between a

nonprofit health service corporation or an insurance company and a health maintenance

organization, the dual choice option may be made available to the employees in the group only

if all of the following conditions are met:

1. There are at least fifteen employees in the group.

2. The group shall maintain the highest enrollment percentage as specified in the

underwriting manual of the nonprofit health service corporation, the insurance

company, or the health maintenance organization, and the health maintenance

organization enrollees must be combined with subscribers of nonprofit health service

corporations or insureds of insurance companies in meeting the percentage

requirements.

3. An employee must be allowed to transfer between coverage offered by a health

maintenance organization and coverage offered by a nonprofit health service

organization or insurance company on the group's anniversary date as specified in the

master contract with the group, except a special opening must be offered at the

group's request for the following reasons:

a. Upon a group's initial offering of a dual choice plan in addition to existing

coverages offered by a nonprofit health service corporation or an insurance

company.

b. When a group discontinues offering a dual choice plan with a health maintenance

organization to request open enrollment into the group offered by the nonprofit

health service corporation or the insurance company.

c. If the group offers both coverage by a nonprofit health service corporation or an

insurance company and a health maintenance organization and an individual

employee enrolled in the health maintenance organization transfers within the

same company but leaves the service area of the health maintenance

organization, the employee must be allowed to enroll in the plan offered by the

nonprofit health service corporation or the insurance company at the time of

transfer.

d. Any group that offers health coverage to its retired employees by a nonprofit

health service corporation or an insurance company and a health maintenance

organization must advise the employees who are enrolled under their present

coverage that they may change to other coverage offered at the time of

retirement, and if the employees who retire elect to retain or change their present

coverage, the employees will no longer be eligible to change coverage after

retirement.
N.D. Cent. Code § 26.1-07.1-01 — ND Code / Title 26.1 / Chapter 26.1-07.1 / Section 26.1-07.1-01
26.1-07.1-01. Jurisdiction over providers of health care benefits
Status: in_force

26.1-07.1-01. Jurisdiction over providers of health care benefits

Notwithstanding any other provision of law, and except as provided under this section, any

person, other than an insurance company duly licensed in this or another state which provides

coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology,

audiology, professional mental health, dental, hospital, or optometric expenses, whether such

coverage is by direct payment, reimbursement, or otherwise, is presumed to be subject to the

jurisdiction of the commissioner unless the person shows that while providing such services the

person is subject to the jurisdiction of another agency of this state, any subdivisions thereof, or

the federal government. A self-insurance health plan formed under chapter 54-52.1 is not

subject to this section but is subject to the jurisdiction of the commissioner under chapter

26.1-36.6.
N.D. Cent. Code § 26.1-06.1-08 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-08
26.1-06.1-08. Condition on release from delinquency proceedings
Status: in_force

26.1-06.1-08. Condition on release from delinquency proceedings

No insurer subject to any delinquency proceedings, whether administrative or judicial, may,

until all payments of or on account of the insurer's contractual obligations by all guaranty

associations, along with all expenses thereof and interest on all such payments and expenses,

have been repaid to the guaranty associations, or until a plan of repayment by the insurer has

been approved by the guaranty associations:

1. Be released from the proceeding, unless the proceeding is converted into a judicial

rehabilitation or liquidation proceeding;

2. Be permitted to solicit or accept new business or request or accept the restoration of

any suspended or revoked license or certificate of authority;

3. Be returned to the control of its shareholders or private management; or

4. Have any of its assets returned to the control of its shareholders or private

management.
N.D. Cent. Code § 26.1-06.1-11 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-11
26.1-06.1-11. Grounds for rehabilitation
Status: in_force

26.1-06.1-11. Grounds for rehabilitation

The commissioner may apply by petition to the district court for an order authorizing the

rehabilitation of a domestic insurer or an alien insurer domiciled in this state on any one or more

of the following grounds:

1. The insurer is in such condition that the further transaction of business would be

hazardous financially to its policyholders, creditors, or the public.

2. There is reasonable cause to believe that there has been embezzlement from the

insurer, wrongful sequestration, or diversion of the insurer's assets, forgery, or fraud

affecting the insurer, or other illegal conduct in, by, or with respect to the insurer that if

established would endanger assets in an amount threatening the solvency of the

insurer.

3. The insurer has failed to remove any person who in fact has executive authority in the

insurer, whether an officer, manager, general agent, employee, or other person, if the

person has been found after notice and hearing by the commissioner to be dishonest

or untrustworthy in a way affecting the insurer's business.

4. Control of the insurer, whether by stock ownership or otherwise, and whether direct or

indirect, is in a person or persons found after notice and hearing to be untrustworthy.

5. Any person, whether an officer, manager, general agent, director, trustee, employee,

or other person, who in fact has executive authority in the insurer, has refused to be

examined under oath by the commissioner concerning its affairs, whether in this state

or elsewhere.

6. After demand by the commissioner pursuant to sections 26.1-03-19.1 through

26.1-03-19.7, or pursuant to this chapter, the insurer has failed to promptly make

available for examination any of its own property, books, accounts, documents, or

other records, or those of any subsidiary or related company within the control of the

insurer, or those of any person having executive authority in the insurer so far as they

pertain to the insurer.

7. Without first obtaining the written consent of the commissioner, the insurer has

transferred, or attempted to transfer, in a manner contrary to chapter 26.1-10 or

26.1-07, substantially its entire property or business, or has entered into any other

transaction the effect of which is to merge, consolidate, or reinsure substantially its

entire property or business in or with the property or business of any other person.

8. The insurer or its property has been or is the subject of an application for the

appointment of a receiver, trustee, custodian, conservator, or sequestrator or similar

fiduciary of the insurer or its property otherwise than as authorized under the

insurance laws of this state, and the appointment has been made or is imminent, and

the appointment might remove the insurer or its property from the jurisdiction of this

state, or might prejudice orderly delinquency proceedings under this chapter.

9. Within the previous four years the insurer has willfully violated its charter or articles of

incorporation, its bylaws, any insurance law of this state, or any valid order of the

commissioner.

10. The insurer has failed to pay within sixty days after due date any obligation to any

state or any subdivision thereof or any judgment entered in any state, if the court in

which the judgment was entered had jurisdiction over the subject matter except that

the nonpayment is not a ground until sixty days after any good-faith effort by the

insurer to contest the obligation has been terminated, whether it is before the

commissioner or in the courts, or the insurer has systematically attempted to

compromise or renegotiate previously agreed settlements with its creditors on the

ground that it is financially unable to pay its obligations in full.

11. The insurer has failed to file its annual report or other financial report required by

statute within the time allowed by law and, after written demand by the commissioner,

has failed to immediately respond with an adequate explanation.

12. The board of directors or the holders of a majority of the shares entitled to vote, or a

majority of those individuals entitled to the control of those entities, request or consent

to rehabilitation under this chapter.

13. Has been found after examination that, in the case of a stock insurance company, its

minimum basic paid-in capital required by section 26.1-05-04 is impaired, or that, in

the case of a domestic mutual insurance company, its surplus required by sections

26.1-12-08 and 26.1-12-10 is impaired.
N.D. Cent. Code § 26.1-18.1-10 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-10
26.1-18.1-10. Grievance procedures
Status: in_force

26.1-18.1-10. Grievance procedures

1. Every health maintenance organization shall establish and maintain a grievance

procedure which has been approved by the commissioner to provide procedures for

the resolution of grievances initiated by enrollees. The health maintenance

organization shall maintain records regarding grievances received since the date of its

last examination of the grievances.

2. The commissioner may examine the grievance procedures.
N.D. Cent. Code § 26.1-03.1-05 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-05
26.1-03.1-05. Authorized control level event
Status: in_force

26.1-03.1-05. Authorized control level event

1. "Authorized control level event" means any of the following events:

a. The filing of a risk-based capital report by the insurer that indicates that the

insurer's total adjusted capital is greater than or equal to its mandatory control

level risk-based capital but less than its authorized control level risk-based

capital;

b. The notification by the commissioner to the insurer of an adjusted risk-based

capital report that indicates the event in subdivision a, provided the insurer does

not challenge the adjusted risk-based capital report under section 26.1-03.1-07;

c. If, under section 26.1-03.1-07, the insurer challenges an adjusted risk-based

capital report that indicates the event in subdivision a, notification by the

commissioner to the insurer that, after a hearing, the commissioner has rejected

the insurer's challenge;

d. The failure of the insurer to respond, in a manner satisfactory to the

commissioner, to a corrective order provided the insurer has not challenged the

corrective order under section 26.1-03.1-07; or

e. If the insurer has challenged a corrective order under section 26.1-03.1-07 and,

after a hearing, the commissioner has rejected the challenge or modified the

corrective order, the failure of the insurer to respond, in a manner satisfactory to

the commissioner, to the corrective order subsequent to rejection or modification

by the commissioner.

2. In the event of an authorized control level event with respect to an insurer, the

commissioner shall:

a. Take such actions as are required under section 26.1-03.1-04 regarding an

insurer with respect to which a regulatory action level event has occurred; or

b. Take necessary action to cause the insurer to be placed under regulatory control

under chapter 26.1-06.1 if the commissioner deems it to be in the best interests

of the policyholders, creditors of the insurer, and the public. If the commissioner

takes such actions, the authorized control level event must be deemed sufficient

grounds for the commissioner to take action under chapter 26.1-06.1, and the

commissioner has the rights, powers, and duties with respect to the insurer in

chapter 26.1-06.1. If the commissioner takes action under this subdivision

pursuant to an adjusted risk-based capital report, the insurer is entitled to any

protection afforded to insurers under chapter 26.1-06.1 pertaining to summary

proceedings.
N.D. Cent. Code § 26.1-15.1-22 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-22
26.1-15.1-22. Funds
Status: in_force

26.1-15.1-22. Funds

1. All assets must be held, invested, and disbursed for the use and benefit of the society

and no member or beneficiary has or acquires individual rights therein or becomes

entitled to any apportionment on the surrender of any part thereof except as provided

in the benefit contract.

2. A society may create, maintain, invest, disburse, and apply any special fund or funds

necessary to carry out any purpose permitted by the laws of the society.

3. A society may, pursuant to resolution of its supreme governing body, establish and

operate one or more separate accounts and issue contracts on a variable basis,

subject to the provisions of law regulating life insurers establishing such accounts and

issuing such contracts. To the extent the society determines it to be necessary in order

to comply with any applicable federal or state laws or rules, the society may adopt

special procedures for the conduct of the business and affairs of a separate account,

may provide special voting and other rights for persons having beneficial interests in

those accounts, including special rights and procedures relating to investment policy,

investment advisory services, selection of certified public accountants, and selection of

a committee to manage the business and affairs of the account, and may issue

contracts on a variable basis to which subsections 2 and 4 of section 26.1-15.1-19 do

not apply.
N.D. Cent. Code § 26.1-45-05.2 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-05.2
26.1-45-05.2. Nursing home policy - Guaranteed renewable for life - Limitation on pre-existing conditions
Status: in_force

26.1-45-05.2. Nursing home policy - Guaranteed renewable for life - Limitation on

pre-existing conditions.

Any long-term care insurance policy or certificate providing benefits for confinement to a

nursing home must be guaranteed renewable for life. For purposes of this section, "guaranteed

renewable for life" means the insured has the right to continue the policy in force for life subject

to the policy's terms by the timely payment of premiums during which the insurer has no right to

make unilaterally any change in any provision of the policy while the policy is in force. The

insurer may, however, in accordance with the provisions of the policy, make changes in premium

rates as to all insureds who are placed in the same class for purposes of rate determination in

the process of issuance of the policy or making it guaranteed renewable.

A policy or certificate of insurance providing benefits for confinement to a nursing home

which is sold to a consumer in addition to another nursing home policy or which is sold to a

consumer to replace such a policy may not contain any provision limiting payment of benefits

due to pre-existing conditions of the insured except if there is any time period remaining relating

to the exclusion of coverage for pre-existing conditions as specified in the underlying policy that

the remaining waiting period for coverage of pre-existing conditions shall apply to the new policy

unless the policy otherwise provides.
N.D. Cent. Code § 26.1-21-06 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-06
26.1-21-06. Condition of bond created by chapter - Limitation
Status: in_force

26.1-21-06. Condition of bond created by chapter - Limitation

Unless otherwise provided, the bond provided under this chapter is a blanket bond. The

blanket bond is a fidelity bond. The blanket bond is conditioned on the public employee or public

official, as principal, rendering a true account of all moneys and property possessed as a public

employee or public official, and delivering the money or the property as required by law. The

provisions of this chapter and of any statute requiring a bond constitute the bond of each public

official and public employee for the purposes of any law of this state requiring the bond and

constitute the entire contract between the fund and a state agency or a political subdivision as

the obligee for the bond.
N.D. Cent. Code § 26.1-10.1-03 — ND Code / Title 26.1 / Chapter 26.1-10.1 / Section 26.1-10.1-03
26.1-10.1-03. Nonrenewals, cancellations, or revisions of ceded reinsurance agreements
Status: in_force

26.1-10.1-03. Nonrenewals, cancellations, or revisions of ceded reinsurance

agreements.

1. Materiality and scope.

a. Nonrenewals, cancellations, or revisions of ceded reinsurance agreements or

new ceded reinsurance agreements need not be reported under section

26.1-10.1-01 if the nonrenewals, cancellations, or revisions of ceded reinsurance

agreements or new ceded reinsurance agreements are not material. For

purposes of this chapter, a material nonrenewal, cancellation, or revision of a

ceded reinsurance agreement or a material new ceded reinsurance agreement is

one that affects:

(1) As respects property and casualty business, including accident and health

business written by a property and casualty insurer:

(a) More than fifty percent of the insurer's total ceded written premium; or

(b) More than fifty percent of the insurer's total ceded indemnity and loss

adjustment reserves.

(2) As respects life, annuity, and accident and health business, more than fifty

percent of the total reserve credit taken for business ceded, on an

annualized basis, as indicated in the insurer's most recent annual statement.

(3) As respects either property and casualty or life, annuity, and accident and

health business, either of the following events constitutes a material revision

that must be reported:

(a) An authorized reinsurer representing more than ten percent of a total

cession is replaced by one or more unauthorized reinsurers; or

(b) Previously established collateral requirements have been reduced or

waived as respects one or more unauthorized reinsurers representing

collectively more than ten percent of a total cession.

b. However, filing is not required if:

(1) As respects property and casualty business, including accident and health

business written by a property and casualty insurer, the insurer's total ceded

written premium represents, on an annualized basis, less than ten percent

of its total written premium for direct and assumed business; or

(2) As respects life, annuity, and accident and health business, the total reserve

credit taken for business ceded represents, on an annualized basis, less

than ten percent of the statutory reserve requirement prior to any cession.

2. Information to be reported.

a. The following information is required to be disclosed in any report of a material

nonrenewal, cancellation, or revision of ceded reinsurance agreements or

material new ceded reinsurance agreements:

(1) Effective date of the nonrenewal, cancellation, revision, or new agreement;

(2) The description of the transaction with an identification of the initiator of the

transaction;

(3) Purpose of, or reason for, the transaction; and

(4) If applicable, the identity of the replacement reinsurers.

b. Insurers are required to report all material nonrenewals, cancellations, or

revisions of ceded reinsurance agreements or material new ceded reinsurance

agreements on a nonconsolidated basis unless the insurer is part of a

consolidated group of insurers that utilizes a pooling arrangement or one hundred

percent reinsurance agreement that affects the solvency and integrity of the

insurer's reserves and the insurer ceded substantially all of its direct and

assumed business to the pool. An insurer is deemed to have ceded substantially

all of its direct and assumed business to a pool if the insurer has less than one

million dollars total direct plus assumed written premiums during a calendar year

which are not subject to a pooling arrangement and the net income of the

business not subject to the pooling arrangement represents less than five percent

of the insurer's capital and surplus.
N.D. Cent. Code § 26.1-26-23 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-23
26.1-26-23. Examination of individuals
Status: repealed

26.1-26-23. Examination of individuals

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-15.1-25 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-25
26.1-15.1-25. Valuation
Status: in_force

26.1-15.1-25. Valuation

1. Standards of valuation for certificates issued before January 1, 1989, are those

provided by the laws applicable immediately before January 1, 1988.

2. The minimum standards of valuation for certificates issued after December 31, 1988,

are based on the following tables:

a. For certificates of life insurance - the commissioners' 1958 standard ordinary

mortality table, the commissioners' 1980 standard ordinary mortality table, or any

more recent table made applicable to life insurers.

b. For annuity and pure endowment certificates, for total and permanent disability

benefits, for accidental death benefits, and for noncancelable accident and health

benefits - tables authorized for use by life insurers in this state.

All of the above must be under valuation methods and standards, including interest

assumptions, in accordance with chapter 26.1-35.

3. The commissioner may accept other standards for valuation if the commissioner finds

that the reserves produced thereby will not be less in the aggregate than reserves

computed in accordance with the minimum valuation standard prescribed in this

section. The commissioner may vary the standards of mortality applicable to all benefit

contracts on substandard lives or other extra hazardous lives by any society

authorized to do business in this state.

4. Any society, with the consent of the insurance department of the state of domicile of

the society and under conditions, if any, which the commissioner may impose, may

establish and maintain reserves on its certificates in excess of the reserves required

thereunder, but the contractual rights of any benefit member may not be affected

thereby.
N.D. Cent. Code § 26.1-40-02.1 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-02.1
26.1-40-02.1. Cancellation of minor's driving privileges - Effect
Status: in_force

26.1-40-02.1. Cancellation of minor's driving privileges - Effect

An insurer may not use or rely on the cancellation of a minor's driving privileges under

section 39-06-01.1 as the sole reason to cancel, deny, or not renew the automobile insurance

policy of the minor or a parent of the minor unless the points or offenses on the minor's public

driving record, separate from a cancellation under section 39-06-01.1, would be a reason to

cancel, deny, or not renew the policy.
N.D. Cent. Code § 26.1-09-15 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-15
26.1-09-15. Penalty
Status: in_force

26.1-09-15. Penalty

Any attorney who exchanges any contract of indemnity of the kind and character specified

in this chapter, and any attorney or representative of the attorney who solicits or negotiates any

application for such contract without complying with this chapter, is guilty of a class B

misdemeanor.
N.D. Cent. Code § 26.1-03-09 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-09
26.1-03-09. Statements to be verified by specified officers - Duty of commissioner to distribute information
Status: in_force

26.1-03-09. Statements to be verified by specified officers - Duty of commissioner to

distribute information.

The annual statement must be verified by the signature and oath of the president or the vice

president and of the secretary, the actuary, if a life insurance company, and the treasurer or

corresponding person having charge of the accounts and finances of the insurance company, or

by a majority of the members of the board of directors of the company. The commissioner shall

arrange the information in the statements in a tabular form and annually print and distribute the

information to the companies doing business in this state and to the legislative assembly.
N.D. Cent. Code § 26.1-36-25 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-25
26.1-36-25. Notice of transfer of health policy unnecessary - Exception
Status: in_force

26.1-36-25. Notice of transfer of health policy unnecessary - Exception

Notice to an insurer of a transfer or bequest of a health insurance policy is not necessary to

preserve the validity of the policy unless notice is required by the policy.
N.D. Cent. Code § 26.1-10-09 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-09
26.1-10-09. Revocation, suspension, and nonrenewal of license
Status: in_force

26.1-10-09. Revocation, suspension, and nonrenewal of license

Whenever it appears to the commissioner that any person has committed a violation of this

chapter which makes the continued operation of an insurer contrary to the interests of

policyholders or the public, the commissioner, after giving notice and an opportunity to be heard,

may suspend, revoke, or refuse to renew the insurer's license or authority to do business in this

state for any period the commissioner finds is required for the protection of policyholders or the

public. Any determination must be accompanied by specific findings of fact and conclusions of

law.
N.D. Cent. Code § 26.1-09-07 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-07
26.1-09-07. Maximum indemnity on fire risk - Statement of maximum liability on single risk
Status: in_force

26.1-09-07. Maximum indemnity on fire risk - Statement of maximum liability on single

risk.

A subscriber to a reciprocal or interinsurance contract may not assume on any single fire

insurance risk an amount greater than ten percent of the net worth of the subscriber. Whenever

required so to do by the commissioner, the attorney shall furnish to the commissioner a

statement under oath of the attorney showing the maximum amount of indemnity carried upon

any single fire insurance risk.
N.D. Cent. Code § 26.1-03-01 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-01
26.1-03-01. Limitation on risks acceptable by company
Status: in_force

26.1-03-01. Limitation on risks acceptable by company

An insurance company transacting an insurance business in this state may not expose itself

to loss on any one risk or hazard to an amount exceeding ten percent of its paid-up capital and

surplus if a stock company, or ten percent of its surplus if a mutual company, unless the excess

is reinsured. An insurance company offering group or individual insurance that is subject to the

lifetime or annual benefit limit restrictions of the Patient Protection and Affordable Care

Act [Pub. L. 111-148], as amended by the Health Care and Education Reconciliation Act of 2010

[Pub. L. 111-152], is not subject to this section.
N.D. Cent. Code § 26.1-02.2-05 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-05
26.1-02.2-05. Notification of a cybersecurity event
Status: in_force

26.1-02.2-05. Notification of a cybersecurity event

1. A licensee shall notify the commissioner as promptly as possible, but no later than

three business days from a determination that a cybersecurity event has occurred if:

a. This state is the licensee's state of domicile, in the case of an insurer, or this state

is the licensee's home state, in the case of a producer as defined in chapter

26.1-26, and the cybersecurity event triggers notification to a consumer residing

in the state in accordance with chapter 51-30 or has a reasonable likelihood of

harming any material part of the normal operations of the licensee; or

b. The licensee reasonably believes the nonpublic information involved is of

two hundred fifty or more consumers residing in this state and is:

(1) A cybersecurity event impacting the licensee for which notice is required to

be provided to any government body, self-regulatory agency, or any other

supervisory body pursuant to any state or federal law; or

(2) A cybersecurity event that has a reasonable likelihood of materially harming

any consumer residing in this state or materially harming any part of the

normal operations of the licensee.

2. The licensee shall provide the notice required under this section in electronic form as

directed by the commissioner. The licensee shall update and supplement the initial and

any subsequent notifications to the commissioner regarding material changes to

previously provided information relating to the cybersecurity event. The licensee's

notice required under this section must include:

a. The date of the cybersecurity event;

b. Description of how the information was exposed, lost, stolen, or breached,

including the specific roles and responsibilities of third-party service providers, if

any;

c. How the cybersecurity event was discovered;

d. Whether any lost, stolen, or breached information has been recovered and if so,

how;

e. The identity of the source of the cybersecurity event;

f. Whether the licensee has filed a police report or has notified any regulatory,

government, or law enforcement agencies and, if so, when the notification was

provided;

g. Description of the specific types of information acquired without authorization.

Specific types of information means particular data elements, including medical

information, financial information, or any other information allowing identification

of the consumer;

h. The period during which the information system was compromised by the

cybersecurity event;

i. The total number of consumers in this state affected by the cybersecurity event.

The licensee shall provide the best estimate in the initial report to the

commissioner and update the estimate with a subsequent report to the

commissioner pursuant to this section;

j. The results of any internal review identifying a lapse in either automated controls

or internal procedures, or confirming that all automated controls or internal

procedures were followed;

k. Description of efforts being undertaken to remediate the situation that permitted

the cybersecurity event to occur;

l. A copy of the licensee's privacy policy and a statement outlining the steps the

licensee will take to investigate and notify consumers affected by the

cybersecurity event; and

m. Name of a contact person that is both familiar with the cybersecurity event and

authorized to act for the licensee.

3. The licensee shall comply with chapter 51-30, as applicable, and provide a copy of the

notice sent to consumers to the commissioner, when a licensee is required to notify

the commissioner under subsection 1.

4. In the case of a cybersecurity event in a system maintained by a third-party service

provider, of which the licensee has become aware, the licensee shall treat the event in

accordance with subsection 1 unless the third-party service provider provides the

notice required under chapter 26.1-02.2 to the commissioner.

a. The computation of licensee's deadlines under this subsection begin on the day

after the third-party service provider notifies the licensee of the cybersecurity

event or the licensee otherwise has actual knowledge of the cybersecurity event,

whichever is sooner.

b. Nothing in this chapter prevents or abrogates an agreement between a licensee

and another licensee, a third-party service provider, or any other party to fulfill any

of the investigation requirements imposed under section 26.1-02.2-04 or notice

requirements imposed under subsection 1.

5. If a cybersecurity event involving nonpublic information that is used by a licensee that

is acting as an assuming insurer or in the possession, custody, or control of a licensee

that is acting as an assuming insurer and that does not have a direct contractual

relationship with the affected consumers, the assuming insurer shall notify the insurer's

affected ceding insurers and the commissioner of the insurer's state of domicile within

three business days of making the determination that a cybersecurity event has

occurred. The ceding insurer that has a direct contractual relationship with affected

consumers shall fulfill the consumer notification requirements imposed under chapter

51-30 and any other notification requirements relating to a cybersecurity event

imposed under subsection 1.

6. If a cybersecurity event involving nonpublic information that is in the possession,

custody, or control of a third-party service provider of a licensee that is an assuming

insurer, the assuming insurer shall notify the insurer's affected ceding insurers and the

commissioner of the insurer's state of domicile within three business days of receiving

notice from its third-party service provider that a cybersecurity event has occurred. The

ceding insurers that have a direct contractual relationship with affected consumers

shall fulfill the consumer notification requirements imposed under chapter 51-30 and

any other notification requirements relating to a cybersecurity event imposed under

subsection 1.

7. Any licensee acting as assuming insurer does not have any other notice obligations

relating to a cybersecurity event or other data breach under this section or any other

law of this state.

8. If a cybersecurity event involving nonpublic information that is in the possession,

custody, or control of a licensee that is an insurer or the insurer's third-party service

provider for which a consumer accessed the insurer's services through an independent

insurance producer, and for which consumer notice is required by chapter 51-30, the

insurer shall notify the producers of record of all affected consumers of the

cybersecurity event no later than the time at which notice is provided to the affected

consumers. The insurer is excused from the obligation imposed under this subsection

for any producers that are not authorized by law or contract to sell, solicit, or negotiate

on behalf of the insurer, and those instances in which the insurer does not have the

current producer of record information for an individual consumer.
N.D. Cent. Code § 26.1-18.1-09 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-09
26.1-18.1-09. Information to enrollees or subscribers
Status: in_force

26.1-18.1-09. Information to enrollees or subscribers

1. The health maintenance organization shall provide to its subscribers a list of providers

upon enrollment and re-enrollment.

2. Every health maintenance organization shall provide within thirty days to its

subscribers notice of any material change in the operation of the organization that will

affect them directly.

3. An enrollee must be notified in writing by the health maintenance organization of the

termination of the primary care provider who provided health care services to that

enrollee. The health maintenance organization shall provide assistance to the enrollee

in transferring to another participating primary care provider.

4. The health maintenance organization shall provide to subscribers information on how

services may be obtained, where additional information on access to services can be

obtained, and a telephone number where the enrollee can contact the health

maintenance organization, at no cost to the enrollee.
N.D. Cent. Code § 26.1-36.8-03 — ND Code / Title 26.1 / Chapter 26.1-36.8 / Section 26.1-36.8-03
26.1-36.8-03. Association short-term limited-duration insurance plans
Status: in_force

26.1-36.8-03. Association short-term limited-duration insurance plans

1. For purposes of this section an association short-term limited-duration insurance plan

approved under section 26.1-30-19 before August 1, 2021, may maintain the current

plan and is not required to comply with the requirements of this section.

2. An insurer issuing a policy or certificate under this section shall provide, at the

insured's option, for renewal or continuation of coverage. The renewal or continuation

of coverage period may not extend for more than thirty-six months from the original

effective date of the policy.

3. An insurer may not subject an insured to additional underwriting at renewal or

continuation of coverage. An insurer offering a short-term limited-duration health

insurance plan may not rate an insured based on any factor other than:

a. Geographic areas;

b. Tobacco use;

c. Family size;

d. Age; and

e. Gender.

4. At a minimum, an association short-term limited-duration plan must cover the

following:

a. Ambulatory patient services in accordance with the essential health benefits;

b. Emergency services in accordance with the essential health benefits;

c. Hospitalization in accordance with the essential health benefits;

d. Pregnancy, maternity, and newborn care in accordance with the essential health

benefits;

e. Mental health and substance use disorder services in accordance with the

essential health benefits;

f. Prescription drugs in accordance with the essential health benefits;

g. Rehabilitative and habilitative services and devices in accordance with the

essential health benefits;

h. Laboratory services in accordance with the essential health benefits; and

i. Preventive and wellness services in accordance with the essential health

benefits.

5. An insurer shall provide a notice of termination of the policy or certificate to the insured

at least fifteen days before renewal or end of the policy term.
N.D. Cent. Code § 26.1-26-50 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-50
26.1-26-50. Civil penalty for violation of chapter
Status: in_force

26.1-26-50. Civil penalty for violation of chapter

In addition to or in lieu of any applicable denial, suspension, or revocation of a license, 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 § 26.1-37-05 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-05
26.1-37-05. Amount of consumer credit insurance
Status: in_force

26.1-37-05. Amount of consumer credit insurance

1. a. Except as otherwise provided in this subsection, the initial amount of credit life

insurance may not exceed the total amount repayable under the contract of

indebtedness and, when an indebtedness is repayable in substantially equal

installments, the amount of insurance may not exceed the scheduled or actual

amount of unpaid indebtedness, whichever is greater. Insurance on agricultural

loan commitments, not exceeding one year in duration, may be written up to the

amount of the loan commitment, on a nondecreasing or level term plan.

Insurance on educational loan commitments may be written for unpaid

indebtedness plus any unused commitment.

b. In the absence of any pre-existing condition exclusions, the amount of insurance

payable in the event of death due to natural causes may be limited to the balance

as the balance existed six months before the date of death if:

(1) There has been one increase or more in the outstanding balance during the

six-month period, other than those due to the accrual of interest or late

charges; and

(2) Evidence of individual insurability has not been required during the

six-month period.

c. Other patterns of insurance may be used which are not inconsistent with this

subsection, including those providing coverage for lease payments or lump sum

purchase at the end of the lease.

2. a. The total amount of periodic indemnity payable by credit accident and health

insurance or by credit unemployment insurance in the event of disability or

unemployment, as defined in the policy, may not exceed the aggregate of the

periodic scheduled unpaid installments of the gross debt; and the amount of each

periodic indemnity payment may not exceed the original gross debt divided by the

number of periodic installments.

b. Notwithstanding subdivision a, for credit accident and health insurance or for

credit unemployment insurance written in connection with an open-end credit

agreement, the amount of insurance may not exceed the gross debt which would

accrue on that amount using the periodic indemnity. Subject to any policy

maximums, the periodic indemnity may not be less than the creditor's minimum

repayment schedule.

3. a. For credit property insurance sold in conjunction with a closed-end transaction,

an insurer may not issue credit property insurance coverage unless the amount

financed exceeds three hundred dollars.

b. For credit property insurance sold in conjunction with a closed-end transaction,

the amount of credit property insurance may not exceed the underlying credit

transaction.
N.D. Cent. Code § 26.1-40-02 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-02
26.1-40-02. Cancellation of policy - Exclusive reasons
Status: in_force

26.1-40-02. Cancellation of policy - Exclusive reasons

1. No insurer may cancel a policy except for the following reasons:

a. Nonpayment of premium.

b. Because the motor vehicle operator's license or motor vehicle registration of

either the named insured or any other operator who resides in the same

household as the named insured or who customarily operates a motor vehicle

insured under the policy has been suspended, rescinded, canceled, or revoked

during the policy period, or, if the policy is a renewal, during its policy period or for

one hundred eighty days immediately preceding its effective date. This

subdivision does not apply and the insurer may not cancel a policy when the

operator whose license is suspended or revoked is excluded from coverage

under the policy. The insurer shall notify the named insured of the possibility of

excluding an operator whose license has been suspended or revoked prior to

cancellation of the policy. When an operator whose license is suspended or

revoked is excluded from coverage under the policy covering a secured motor

vehicle, the owner of the motor vehicle who gives expressed or implied consent

to the operator to use the motor vehicle is not relieved of liability under

subsection 5 of section 26.1-41-02.

c. Fraud or material misrepresentation made by or with the knowledge of any

insured in obtaining the policy, continuing the policy, or in presenting a claim

under the policy.

d. The insured motor vehicle is:

(1) So mechanically defective that its operation might endanger public safety;

(2) Used in carrying passengers for hire or compensation; provided, however,

that the use of an automobile for a car pool is not use of an automobile for

hire or compensation;

(3) Used in the transportation of flammables or explosives or for an illegal

purpose;

(4) An authorized emergency vehicle; or

(5) Altered by an insured during the policy period so as to substantially increase

the risk.

e. The named insured moves to a state where the insurer is not licensed to do

business.

f. Failure to pay dues or fees when payment of the dues or fees is a prerequisite to

obtaining or continuing automobile insurance coverage.

g. A determination by the commissioner that the continuation of the policy would

place the insurer in violation of the law or would be hazardous to the interests of

policyholders, creditors, or the public.

2. During the policy period no modification of automobile physical damage coverage,

except coverage for loss caused by collision, by which provision is made for the

application of a deductible amount not exceeding one hundred dollars is deemed a

cancellation of the coverage or of the policy.

3. Renewal of a policy does not constitute a waiver or estoppel with respect to grounds

for cancellation which existed before the effective date of the renewal.
N.D. Cent. Code § 26.1-26-47 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-47
26.1-26-47. Reciprocal provision - Retaliatory action
Status: repealed

26.1-26-47. Reciprocal provision - Retaliatory action

Repealed by S.L. 1999, ch. 252, § 31.
N.D. Cent. Code § 26.1-30-01 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-01
26.1-30-01. Insurance policy defined - Requirements
Status: in_force

26.1-30-01. Insurance policy defined - Requirements

An insurance policy is the written insurance contract. It must specify:

1. The parties between whom the contract is made.

2. The rate of premium.

3. The property or life insured.

4. The interest of the insured in the property insured if the insured is not the absolute

owner of the property.

5. The risks insured against.

6. The period during which the insurance is to continue.
N.D. Cent. Code § 26.1-30.1-01.1 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-01.1
26.1-30.1-01.1. Unlawful grounds for declination
Status: in_force

26.1-30.1-01.1. Unlawful grounds for declination

The declination or termination of a commercial insurance policy subject to sections

26.1-30.1-01 through 26.1-30.1-08 by an insurer or insurance producer is prohibited if the

declination or termination is based solely upon any of the following reasons:

1. The race, religion, nationality, ethnic group, disability, age, sex, or marital status of the

applicant or named insured, except this subsection does not prohibit rating differentials

based upon age, sex, or marital status.

2. The lawful occupation or profession of the applicant or named insured, except that this

provision does not apply to an insurer or insurance producer that limits its market to

one lawful occupation or profession or to several related occupations or professions.

3. The age or location of the property 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 principal location of the insured motor vehicle, unless the decision is for a

business purpose which is not a mere pretext for unfair discrimination.

5. The fact that another insurer previously declined to insure the applicant or terminated

an existing policy in which the applicant was the named insured.

6. The fact that the applicant or named insured previously obtained insurance coverage

through a residual market insurance mechanism or an insurance company that insures

substandard risks.
N.D. Cent. Code § 26.1-31.2-04 — ND Code / Title 26.1 / Chapter 26.1-31.2 / Section 26.1-31.2-04
26.1-31.2-04. Rulemaking authority
Status: in_force

26.1-31.2-04. Rulemaking authority

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

chapter.
N.D. Cent. Code § 26.1-18.1-04 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-04
26.1-18.1-04. Powers of health maintenance organizations
Status: in_force

26.1-18.1-04. Powers of health maintenance organizations

1. The powers of a health maintenance organization include the following:

a. The purchase, lease, construction, renovation, operation, or maintenance of

hospitals, medical facilities, or both, and their ancillary equipment, and such

property as may reasonably be required for its principal office or for such

purposes as may be necessary in the transaction of the business of the

organization.

b. Transactions between affiliated entities, including loans and the transfer of

responsibility under all contracts between affiliates or between the health

maintenance organization and its parent.

c. The furnishing of health care services through providers, provider associations, or

agents for providers which are under contract with or employed by the health

maintenance organization.

d. The contracting with any person for the performance on its behalf of certain

functions such as marketing, enrollment, and administration.

e. The contracting with an insurance company licensed in this state, or with a

hospital or medical service corporation authorized to do business in this state, for

the provision of insurance, indemnity, or reimbursement against the cost of health

care services provided by the health maintenance organization.

f. The offering of other health care services, in addition to basic health care

services. Nonbasic health care services may be offered by a health maintenance

organization on a prepaid basis without offering basic health care services to any

group or individual.

g. The joint marketing of products with an insurance company licensed in this state

or with a hospital or medical service corporation authorized to do business in this

state as long as the company that is offering each product is clearly identified.

2. a. A health maintenance organization shall file notice, with adequate supporting

information, with the commissioner prior to the exercise of any power granted in

subdivisions a, b, and d of subsection 1 which may affect the financial soundness

of the health maintenance organization. The commissioner shall disapprove the

exercise of power only if in the commissioner's opinion it would substantially and

adversely affect the financial soundness of the health maintenance organization

and endanger its ability to meet its obligations.

b. The commissioner may adopt rules exempting from the filing requirement of

subdivision a those activities having a de minimis effect.
N.D. Cent. Code § 26.1-50-02 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-02
26.1-50-02. Establishment - Organization
Status: in_force

26.1-50-02. Establishment - Organization

Any insurer or group of insurers may establish a corporation or limited liability company to

own and operate the North Dakota low-risk incentive fund. Except as provided in this chapter, all

authority regarding the articles of incorporation or articles of organization is the province of the

governing board, which must include a representative of the Bank of North Dakota and the

commissioner of commerce or the commissioner's designee. The Bank of North Dakota shall

administer the fund; however, the governing board is responsible for adopting fund policies and

procedures. The governing board may not distribute more than seventy-five percent of the net

profit of the fund in any of the first five years of operation.
N.D. Cent. Code § 26.1-26-21 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-21
26.1-26-21. Agents to designate commissioner as attorney for service of process - Fee
Status: in_force

26.1-26-21. Agents to designate commissioner as attorney for service of process -

Fee.

The commissioner may not issue a license to any applicant until the applicant files with the

commissioner a designation of the commissioner and the commissioner's successors in office,

as the applicant's true and lawful attorney, upon whom may be served all lawful process in any

action or proceeding instituted by or on behalf of any interested person arising out of the

applicant's insurance business in this state. The designation constitutes an agreement that the

service of process is of the same legal force and validity as personal service of process in this

state upon the person.
N.D. Cent. Code § 26.1-40-21 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-21
26.1-40-21. Revocation of certificate of authority
Status: repealed

26.1-40-21. Revocation of certificate of authority

Repealed by S.L. 2001, ch. 107, § 4.
N.D. Cent. Code § 26.1-39-24 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-24
26.1-39-24. Domestic violence - Intentional acts
Status: in_force

26.1-39-24. Domestic violence - Intentional acts

An insurer issuing or renewing a policy of property and casualty insurance in this state may

not base any rating, underwriting, or claim-handling decision solely on whether an applicant or

insured suffers from domestic violence as defined under chapter 14-07.1. If a property and

casualty insurance policy excludes property coverage for intentional acts, the insurer may not

deny payment to an innocent coinsured who did not cooperate in or contribute to the creation of

the loss if the loss arose out of domestic violence and the perpetrator of the loss is criminally

prosecuted for the act causing the loss. Payment to this innocent coinsured may be limited to

the innocent coinsured's ownership interest in the property as reduced by any payment to a

mortgagor or other secured interest.
N.D. Cent. Code § 26.1-21-10.2 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-10.2
26.1-21-10.2. State employee defense - Expenses withdrawn by attorney general
Status: repealed

26.1-21-10.2. State employee defense - Expenses withdrawn by attorney general

Repealed by S.L. 1997, ch. 286, § 11.
N.D. Cent. Code § 26.1-13-09 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-09
26.1-13-09. Membership in county mutual company - Limitation on right to be director
Status: in_force

26.1-13-09. Membership in county mutual company - Limitation on right to be

director.

Any person owning property within the limits of the territory within which a county mutual

insurance company is authorized to transact business may become a member of the company

and entitled to all of the rights and privileges appertaining thereto by insuring therein. A person

who does not reside within the territorial limits may not become a director of the company.
N.D. Cent. Code § 26.1-33.4-03 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-03
26.1-33.4-03. License suspension, revocation, or refusal to renew
Status: in_force

26.1-33.4-03. License suspension, revocation, or refusal to renew

1. The commissioner may suspend, revoke, or refuse to renew the license of any

licensee if the commissioner finds that:

a. There was any material misrepresentation in the application for the license;

b. The licensee or any officer, partner, member, or director has been guilty of

fraudulent or dishonest practices, is subject to a final administrative action, or is

otherwise shown to be untrustworthy or incompetent to act as a licensee;

c. The provider demonstrates a pattern of unreasonably withholding payments to

policyowners;

d. The licensee no longer meets the requirements for initial licensure;

e. The licensee or any officer, partner, member, or director has been convicted of a

felony or of any misdemeanor of which criminal fraud is an element; or the

licensee has pleaded guilty or nolo contendere with respect to any felony or any

misdemeanor of which criminal fraud or moral turpitude is an element, regardless

whether a judgment of conviction has been entered by the court;

f. The provider has entered any life settlement contract that has not been approved

pursuant to this chapter;

g. The provider has failed to honor contractual obligations set out in a life settlement

contract;

h. The provider has assigned, transferred, or pledged a settled policy to a person

other than a provider licensed in this state, a purchaser, an accredited investor or

qualified institutional buyer as defined respectively in regulation D, rule 501 or

rule 144A of the federal Securities Act of 1933, as amended [15 U.S.C. 77a

et seq.], financing entity, special purpose entity, or related provider trust; or

i. The licensee or any officer, partner, member, or key management personnel has

violated any of the provisions of this chapter.

2. The commissioner may suspend, revoke, or refuse to renew the license of a broker if

the commissioner finds that the broker has violated this chapter or has otherwise

engaged in bad-faith conduct with one or more owners.

3. Before the commissioner denies a license application or suspends, revokes, or refuses

to renew the license of any licensee under this chapter, the commissioner shall

conduct a hearing.
N.D. Cent. Code § 26.1-20.1-12 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-12
26.1-20.1-12. Application to premium finance agreements
Status: in_force

26.1-20.1-12. Application to premium finance agreements

This chapter applies to premium finance agreements and amendments to existing premium

finance agreements executed after July 1, 1989.
N.D. Cent. Code § 26.1-26-36 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-36
26.1-26-36. Surplus lines insurance producer's authority
Status: in_force

26.1-26-36. Surplus lines insurance producer's authority

A surplus lines insurance producer may act as a surplus lines insurance producer in this

state for any foreign company or insurer not authorized to transact business in this state in

securing, issuing, or placing insurance policies, indemnity contracts, or surety bonds on property

located in, or undertakings to be carried out in, this state for the company or insurer. A surplus

lines insurance producer may accept business from any licensed insurance producer for a

nonadmitted company and may compensate the insurance producer for the business, provided

the insurance is written in conformity with this title.
N.D. Cent. Code § 26.1-09-11 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-11
26.1-09-11. Appointment of insurance producers by attorney - Insurance producer's license fee
Status: in_force

26.1-09-11. Appointment of insurance producers by attorney - Insurance producer's

license fee.

The attorney may appoint insurance producers to represent the attorney in this state, but

the insurance producers, before writing or soliciting any of the insurance provided for under this

chapter, must receive a certificate of authority from the commissioner. The fee for the certificate

is that specified in section 26.1-01-07.
N.D. Cent. Code § 26.1-14-05 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-05
26.1-14-05. Initial policyholders surplus - Tax - Membership fee
Status: in_force

26.1-14-05. Initial policyholders surplus - Tax - Membership fee

1. If physicians practicing medicine within North Dakota find it difficult to obtain medical

malpractice insurance, the North Dakota board of medicine, by a majority vote of its

membership, may elect to initiate and implement this chapter. Before fifteen days from

the date the election to implement this chapter is made, the board shall certify to the

state treasurer a list of all licensed physicians as shown in the latest record of the

board.

2. A special one-time tax for the privilege of practicing medicine in North Dakota will be

levied on licensed physicians listed by the state treasurer in accordance with

subsection 1 in the amount of five hundred dollars per licensed physician, to be levied,

assessed, and collected by the state treasurer. The tax does not apply to any

physician who submits a statement, sworn to under penalties of perjury, stating that

the physician has permanently terminated the practice of medicine in the state of North

Dakota. The state treasurer shall prescribe the form of the statement.

3. The legislative assembly appropriates and dedicates the entire proceeds of the tax

provided by this chapter as the initial policyholders surplus of the company, and the

treasurer and director of the office of management and budget shall promptly pay over

the proceeds of the tax to the company.

4. The board of directors of the company may establish membership fees in amounts as

it deems reasonable to be paid by members of the company. Any physician who has

paid the tax specified in subsection 2 must be credited the amount of the tax paid

against the liability for any membership fee.

5. Upon payment of the specified membership fee, a physician may be insured by the

company for any and all hazards customarily insured by the company, subject to any

limitation of coverage specified by the company in accordance with policy limitations,

exclusions, conditions, deductibles, and loss-sharing requirements.
N.D. Cent. Code § 26.1-36-34 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-34
26.1-36-34. Medicare supplement policy loss ratio standards
Status: repealed

26.1-36-34. Medicare supplement policy loss ratio standards

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-39-07 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-07
26.1-39-07. Standard fire policy - Loss or damage caused by nuclear reaction
Status: in_force

26.1-39-07. Standard fire policy - Loss or damage caused by nuclear reaction

An insurer issuing the standard policy pursuant to section 26.1-39-06 may affix to the policy

or include in the policy a written statement that the policy does not cover loss or damage caused

by nuclear reaction or nuclear radiation or radioactive contamination, all whether directly or

indirectly resulting from an insured peril under the policy. An insurer may attach to the standard

policy an endorsement or endorsements specifically assuming coverage for loss or damage

caused by nuclear reaction or nuclear radiation or radioactive contamination.
N.D. Cent. Code § 26.1-03.2-10 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-10
26.1-03.2-10. Foreign health organizations
Status: in_force

26.1-03.2-10. Foreign health organizations

1. a. A foreign health organization, upon the written request of the commissioner, shall

submit to the commissioner a risk-based capital report for the calendar year just

ended, the later of:

(1) The date a risk-based capital report would be required to be filed by a

domestic health organization under this chapter; or

(2) Fifteen days after the request is received by the foreign health organization.

b. A foreign health organization, at the written request of the commissioner, shall

promptly submit to the commissioner a copy of any risk-based capital plan that is

filed with the insurance commissioner of any other state.

2. In the event of a company action level event, regulatory action level event, or

authorized control level event with respect to a foreign health organization as

determined under the risk-based capital statute applicable in the state of domicile of

the health organization or, if no risk-based capital statute is in force in that state, under

the provisions of this chapter, if the insurance commissioner of the state of domicile of

the foreign health organization fails to require the foreign health organization to file a

risk-based capital plan in the manner specified under that state's risk-based capital

statute or, if no risk-based capital statute is in force in that state, under section

26.1-03.2-03, the commissioner may require the foreign health organization to file a

risk-based capital plan with the commissioner. In such event, the failure of the foreign

health organization to file a risk-based capital plan with the commissioner is grounds to

order the health organization to cease and desist from writing new insurance business

in this state.

3. In the event of a mandatory control level event with respect to a foreign health

organization, if no domiciliary receiver has been appointed with respect to the foreign

health organization under the rehabilitation and liquidation statute applicable in the

state of domicile of the foreign health organization, the commissioner may make

application to the district court permitted under section 26.1-06.1-04 with respect to the

liquidation of property of foreign health organizations found in this state, and the

occurrence of the mandatory control level event shall be considered adequate grounds

for the application.
N.D. Cent. Code § 26.1-17-02 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-02
26.1-17-02. Nonprofit health service corporations authorized
Status: in_force

26.1-17-02. Nonprofit health service corporations authorized

A health service corporation must be organized under this chapter and, to the extent

applicable, under chapter 10-33 for the purposes of establishing and putting into effect a health

service plan whereby one or more kinds of health service is provided to subscribers under a

contract entitling each subscriber to certain specified health service. Any corporation subject to

this chapter is not subject to the laws of this state relating to insurance and insurance

companies, except as specifically provided in such laws. This chapter applies only to

corporations organized pursuant to its provisions, except as specifically provided otherwise.
N.D. Cent. Code § 26.1-01-08.1 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-08.1
26.1-01-08.1. Electronic filings allowed
Status: in_force

26.1-01-08.1. Electronic filings allowed

1. Notwithstanding any other provision of this title, the commissioner may adopt rules that

allow either an applicant or a licensee to file documents electronically with the

commissioner or the commissioner's designee. The rules may contain procedures for

the electronic filing of the following:

a. Any document required as part of an application for a license under this title;

b. Any document required to be filed by an applicant or licensee to maintain the

license in good standing;

c. Any fee required under this title; and

d. Any other document required or permitted to be filed.

2. This section may not be interpreted to supersede any other provision of law that

requires the electronic filing of a document or to require an applicant or licensee to

make any other filing electronically. The commissioner or the commissioner's designee

may charge a processing fee for electronic filing. A fee charged for the processing of

an electronic filing is in addition to any other fee imposed for the filing. Processing fees

charged for an electronic filing are limited to the lesser of twenty dollars per transaction

or the actual cost of the electronic transaction charged by the designee processing the

filing. If the actual cost of processing an electronic filing exceeds twenty dollars per

transaction, the commissioner may adopt rules to increase an electronic processing

fee not to exceed the actual cost charged by the designee.
N.D. Cent. Code § 26.1-05-09 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-09
26.1-05-09. Commissioner authorized to regulate solicitation of proxies
Status: in_force

26.1-05-09. Commissioner authorized to regulate solicitation of proxies

A person, in contravention of any rules the commissioner may adopt as necessary or

appropriate in the public interest or for the protection of investors, may not solicit or permit the

use of the person's name to solicit any proxy, consent, or authorization in respect of any equity

security of a domestic stock insurance company not listed on a national securities exchange

and registered as such with the federal securities and exchange commission. This section

applies to every domestic stock insurance company having one hundred or more stockholders

of record. However, this section does not apply to any insurance company if ninety-five percent

or more of its stock is owned or controlled by a parent or an affiliated insurance company and

the remaining shares are held by less than five hundred stockholders. A domestic stock

insurance company which files with the federal securities and exchange commission forms of

proxies, consents, and authorizations which comply with the requirements of the Securities and

Exchange Act of 1934, as amended, is exempt from this section.
N.D. Cent. Code § 26.1-14-07 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-07
26.1-14-07. Management and administration of the company
Status: in_force

26.1-14-07. Management and administration of the company

1. If, in the judgment of the board of directors, the affairs of the company thereby may be

administered suitably and efficiently, the company may enter into a contract, not to

exceed five years in duration, whereby the affairs of the company may be administered

by a licensed insurer or a licensed nonprofit health service plan, subject to any

continuing direction by the board of directors as specified in the articles of

incorporation, the bylaws, and the contract.

2. The basis of compensation to the administering licensed insurer or plan in any contract

described in this section must be reimbursement of expenses reasonably allocable to

the business of the company plus an appropriate and reasonable additional allowance

as specified in the contract. Any additional allowance, if based upon premium volume

or size of membership, must contain a reasonable aggregate dollar maximum. The

amount of the fee may not be made dependent on the underwriting or investment

profits of the company.

3. Upon the execution of any contract, the company shall promptly file a copy with the

commissioner. The contract becomes effective thirty days from the date of the filing

unless the commissioner, prior to the effective date, disapproves the contract as illegal,

unduly onerous, or not in the best interest of the company and states the reasons for

the findings.
N.D. Cent. Code § 26.1-13-18 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-18
26.1-13-18. Maximum amount of insurance on single risk
Status: in_force

26.1-13-18. Maximum amount of insurance on single risk

The maximum amount of insurance which a county mutual insurance company may retain

on a single risk other than under a liability insurance contract, after deduction of applicable

reinsurance, may not exceed ten percent of the admitted assets of the company or thirty

thousand dollars, whichever is the larger amount. The maximum amount of insurance which a

county mutual insurance company may retain on a single risk under a liability insurance contract

may not exceed one percent of the surplus maintained by the company.
N.D. Cent. Code § 26.1-03-13 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-13
26.1-03-13. Reporting of product liability information
Status: repealed

26.1-03-13. Reporting of product liability information

Repealed by S.L. 2003, ch. 245, § 4.
N.D. Cent. Code § 26.1-36-36.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-36.2
26.1-36-36.2. Noncustodial care coverage
Status: in_force

26.1-36-36.2. Noncustodial care coverage

An insurer offering convalescent nursing home, extended care facility, or skilled nursing

facility coverage under chapter 26.1-36.1 or 26.1-45 shall cover intermediate care confinements

in the same manner as skilled care confinements.
N.D. Cent. Code § 26.1-52-02 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-02
26.1-52-02. Definitions
Status: in_force

26.1-52-02. Definitions

As used in this chapter:

1. "Basic property insurance" means insurance against direct loss to property as defined

and limited in standard fire policies and extended coverage endorsements thereon.

2. "Homeowners insurance" means insurance on owner-occupied dwellings providing

personal multiperil property and liability coverage.

3. "Insurer" means an insurance company authorized to write and that is engaged in

writing in North Dakota, on a direct basis, basic property and homeowners insurance

or components thereof.

4. "North Dakota property insurance placement facility" or "facility" means the

organization formed by insurers to assist applicants in securing basic property or

homeowners insurance.
N.D. Cent. Code § 26.1-16-16 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-16
26.1-16-16. Application for and certificate of membership - Contents - Approval - Maximum benefits - Expense deductions
Status: in_force

26.1-16-16. Application for and certificate of membership - Contents - Approval -

Maximum benefits - Expense deductions.

The certificate of membership issued by a benevolent society must state fully the conditions

on which the benefit is paid. The certificate of membership and the application for the certificate

constitute the entire contract between the society and the member. Every certificate and

application must have printed or stamped thereon in red ink and in ten-point boldfaced type

"This is not an insurance policy. The society maintains no reserve. All benefits are dependent

upon voluntary assessments from members." The insurance commissioner shall approve the

form of the certificate and application prior to their issuance or use. The benefits under any

certificate must be confined to a death benefit to the beneficiary of the deceased member in an

amount not to exceed two thousand dollars, and the certificate must provide for an assessment

on the membership in an amount not exceeding four dollars to be paid by the members after

notice and proof of death. The proceeds of the assessment, less an amount not exceeding ten

percent thereof as an allowance for expenses, must be paid to the beneficiary of the deceased

member. A death benefit may not exceed the maximum amount stated in the certificate.
N.D. Cent. Code § 26.1-06.2-06 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-06
26.1-06.2-06. Review and stay of action
Status: in_force

26.1-06.2-06. Review and stay of action

During the period of supervision the insurer may contest an action taken or proposed to be

taken by the supervisor specifying the manner wherein the action being complained of would

not result in improving the condition of the insurer. Denial of the insurer's request upon

reconsideration entitles the insurer to request a proceeding under chapter 28-32.
N.D. Cent. Code § 26.1-06.1-14 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-14
26.1-06.1-14. Actions by and against rehabilitator
Status: in_force

26.1-06.1-14. Actions by and against rehabilitator

1. Whenever any action or proceeding in which the insurer is a party, or is obligated to

defend a party, is pending at the time a rehabilitation order against the insurer is

entered, the court before which the action or proceeding is pending shall stay the

action or proceeding for ninety days and such additional time as is necessary for the

rehabilitator to obtain proper representation and prepare for further proceedings. The

rehabilitator shall take such action respecting the pending litigation as deemed

necessary in the interests of justice and for the protection of creditors, policyholders,

and the public. The rehabilitator shall immediately consider all litigation pending

outside this state and shall petition the courts having jurisdiction over that litigation for

stays whenever necessary to protect the estate of the insurer.

2. No statute of limitations or defense of laches runs with respect to any action by or

against an insurer between the filing of a petition for appointment of a rehabilitator for

that insurer and the order granting or denying that petition. Any action against the

insurer that might have been commenced when the petition was filed may be

commenced for at least sixty days after the order of rehabilitation is entered or the

petition is denied. The rehabilitator may, upon an order for rehabilitation, within one

year or such other longer time as applicable law may permit, institute an action or

proceeding on behalf of the insurer upon any cause of action against which the period

of limitation fixed by applicable law has not expired at the time of the filing of the

petition upon which such order is entered.

3. Any guaranty association or foreign guaranty association covering life or health

insurance or annuities shall have standing to appear in any court proceeding

concerning the rehabilitation of a life or health insurer if such association is or may

become liable to act as a result of the rehabilitation.
N.D. Cent. Code § 26.1-31.1-12 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-12
26.1-31.1-12. Effective date
Status: in_force

26.1-31.1-12. Effective date

No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary

after July 7, 1991, unless utilization is in compliance with this chapter.
N.D. Cent. Code § 26.1-26-13.2 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-13.2
26.1-26-13.2. Application for examination
Status: in_force

26.1-26-13.2. Application for examination

1. A resident individual applying for an insurance producer license or an insurance

consultant license must pass a written examination unless exempt under section
N.D. Cent. Code § 26.1-36.12-02 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-02
26.1-36.12-02. Disclosure and review of prior authorization requirements
Status: in_force

26.1-36.12-02. Disclosure and review of prior authorization requirements

1. A prior authorization review organization shall make any prior authorization

requirements and restrictions readily accessible on the organization's website to

enrollees, health care professionals, and the general public. Requirements include the

written clinical criteria and be described in detail using plain and ordinary language

comprehensible by a layperson.

2. If a prior authorization review organization intends to implement a new prior

authorization requirement or restriction, or amend an existing requirement or

restriction, the prior authorization review organization shall:

a. Ensure the new or amended requirement is not implemented unless the prior

authorization review organization's website has been updated to reflect the new

or amended requirement or restriction; and

b. Provide contracted health care providers of enrollees written notice of the new or

amended requirement or amendment no fewer than sixty days before the

requirement or restriction is implemented.
N.D. Cent. Code § 26.1-41-04 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-04
26.1-41-04. Optional excess no-fault benefits
Status: in_force

26.1-41-04. Optional excess no-fault benefits

Each basic no-fault insurer of the owner of a secured motor vehicle shall also make

available optional excess no-fault benefits for excess economic loss commencing upon the

exhaustion of basic no-fault benefits, up to a total of eighty thousand dollars in no-fault benefits

for accidental bodily injury to any one person in any one accident, including an accident when

the person who purchased the optional excess no-fault benefits or that person's relative is

injured in a motor vehicle not owned by the insured or as a pedestrian. A basic no-fault insurer

may also offer benefits and limits other than those prescribed in this section, and a basic

no-fault insurer may incorporate in optional excess no-fault coverage the terms, conditions, and

exclusions as may be consistent with the premiums charged. The amounts payable under

optional excess no-fault benefits may be duplicative of benefits received from any collateral

sources or may be written in excess of such collateral source benefits, or may provide for

reasonable waiting period, deductibles, or coinsurance provisions. The optional excess no-fault

benefits of a basic no-fault insurer may provide for subrogation to the injured person's right of

recovery against any responsible third party.
N.D. Cent. Code § 26.1-36.4-04 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-04
26.1-36.4-04. Portability of insurance policies
Status: in_force

26.1-36.4-04. Portability of insurance policies

An insurer shall reduce any time period applicable to a pre-existing condition, for a policy by

the aggregate of periods the individual was covered by qualifying previous coverage, if the

qualifying previous coverage as defined in section 26.1-36.3-01 is continuous until at least

sixty-three days before the effective date of the new coverage. Any waiting period applicable to

an individual for coverage under a health benefit plan may not be taken into account in

determining the period of continuous coverage. Insurers shall credit coverage in the same

manner as provided by section 26.1-36.3-06 and the rules adopted by the commissioner

pursuant thereto.
N.D. Cent. Code § 26.1-36.5-01 — ND Code / Title 26.1 / Chapter 26.1-36.5 / Section 26.1-36.5-01
26.1-36.5-01. Definition
Status: in_force

26.1-36.5-01. Definition

For purposes of this chapter, unless the context otherwise requires, "insurer" means any

health insurer, including a group health plan, as defined in section 607(1) of the Employee

Retirement Income Security Act of 1974 [Pub. L. 99-272; 100 Stat. 281; 29 U.S.C. 1167(1)], a

health maintenance organization as defined in section 26.1-18.1-01, a health service

corporation as defined in section 26.1-17-01, and a provider of an accident and health insurance

policy as defined in section 26.1-36-03.
N.D. Cent. Code § 26.1-06-01 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-01
26.1-06-01. Definitions
Status: in_force

26.1-06-01. Definitions

As used in this chapter, unless the context or subject matter otherwise requires:

1. "Equity security" means any shares or similar securities, or voting trust certificates, or

any securities convertible into such securities.

2. "Horizontal combination" means two or more corporations each of which has a

majority of its equity securities owned by the same other corporation.

3. "Offeree" means the beneficial or record owner of equity securities which an offeror

acquires or offers to acquire in connection with a takeover bid.

4. "Offeror" means a person who makes or in any way participates or aids in making a

takeover bid, and includes persons acting jointly or in concert, or who intend to

exercise jointly or in concert any voting rights attached to the equity securities for

which the takeover bid is made.

5. "Takeover bid" means the acquisition of, or offer to acquire, pursuant to a tender offer

or request or invitation for tenders, any equity security of a North Dakota domestic

insurance company, if after acquisition thereof the offeror would, directly or indirectly,

be a record or beneficial owner of more than five percent of any class of the issued

and outstanding equity securities of such corporation. A takeover bid does not include:

a. A bid made by a dealer for the dealer's own account in the ordinary course of the

dealer's business of buying and selling the security.

b. Any offer to acquire or acquisition of an equity security pursuant to the offer, for

the sole account of the offeror, from not more than twenty persons, in good faith

and not for the purpose of avoiding this chapter.

c. Any tender offer or request or invitation for tenders to which the target company

consents, by action of its board of directors, if the board has recommended

acceptance to shareholders and the terms, including notice of any inducements

to officers or directors which are not made available to all shareholders, have

been furnished to shareholders.

6. "Target company" means a corporation whose equity securities are or are to be the

subject of a takeover bid.

7. "Vertical combination" means a chain of ownership in which one corporation has a

majority of its equity securities owned by another corporation and which chain of

corporate ownership may or may not continue through other corporations in which a

majority of the equity securities of one corporation are owned by another.
N.D. Cent. Code § 26.1-19-05 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-05
26.1-19-05. State bar association - Advisory committee
Status: in_force

26.1-19-05. State bar association - Advisory committee

1. Upon receipt of an application for issuance of a certificate of authority, the

commissioner shall transmit copies of the application and accompanying documents to

the state bar association of North Dakota.

2. An advisory committee to assist the commissioner in the development of rules

governing the conduct or organizations authorized under this chapter is created. The

committee consists of seven members appointed by the board of governors of the

state bar association of North Dakota. Members of the committee are allowed

expenses for travel, board, and lodging in the performance of their duties as provided

in sections 44-08-04 and 54-06-09. Members of the committee have the right to

participate in any hearing held under this chapter and must receive notice of any order

or decision of the commissioner.
N.D. Cent. Code § 26.1-26.8-12 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-12
26.1-26.8-12. Continuing education
Status: in_force

26.1-26.8-12. Continuing education

1. Except as otherwise provided in this section, an individual who holds a resident public

adjuster license or a nonresident public adjuster license shall satisfactorily complete a

minimum of twenty-four credits of continuing education, including three credits of

ethics, reported on a biennial basis in conjunction with the license renewal cycle.

Credits for continuing education courses attended in any one year over the minimum

number of hours of education required, not to exceed twelve hours, may be credited to

the year next preceding the year in which the credits were earned or to the year next

following the year in which the credits were earned. Report of continuing education

must be made at the end of a two-year period. The commissioner may provide a

one-time extension of the two-year reporting requirement, not to exceed thirty-six

months, if additional time is necessary to implement the transition to reporting

continuing education by the last day of the birth month.

2. The requirements of subsection 1 do not apply to a nonresident public adjuster who

has met the continuing education requirements of the adjuster's home state and

whose home state gives credit to residents of this state on the same basis.

3. The commissioner shall provide by rule for reporting by the last day of the birth month

of compliance with the continuing education requirements of this section.
N.D. Cent. Code § 26.1-25-10.5 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10.5
26.1-25-10.5. Joint underwriting, joint reinsurance pool, and residual market activities
Status: in_force

26.1-25-10.5. Joint underwriting, joint reinsurance pool, and residual market

activities.

1. Notwithstanding subdivision a of subsection 2 of section 26.1-25-10.2, insurers

participating in joint underwriting, joint reinsurance pools, or residual market

mechanisms may in connection with such activity act in cooperation with each other in

the making of rates, rating systems, policy forms, underwriting rules, surveys,

inspections and investigations, the furnishing of loss and expense statistics or other

information, or carrying on research. Joint underwriting, joint reinsurance pools, and

residual market mechanisms may not be deemed an advisory organization.

2. Regulation.

a. Except to the extent modified by this section, insurers, joint underwriting, joint

reinsurance pool, and residual market mechanism activities are subject to the

other provisions of this chapter.

b. If, after hearing, the commissioner finds that any activity or practice of an insurer

participating in joint underwriting or a pool is unfair, is unreasonable, will tend to

lessen competition in any market, or is otherwise inconsistent with the provisions

or purposes of this chapter, the commissioner may issue a written order and

require the discontinuance of such activity or practice.

c. Every pool shall file with the commissioner a copy of its constitution; its articles of

incorporation, agreement, or association; its bylaws, rules, and regulations

governing its activities; its members; the name and address of a resident of this

state upon whom notices or orders of the commissioner or process may be

served; and any changes in amendments or changes in the foregoing.

d. Any residual market mechanism, plan, or agreement to implement such a

mechanism, and any changes or amendments thereto, must be submitted in

writing to the commissioner for consideration and approval, together with such

information as may be reasonably required. The commissioner may approve only

such agreements as are found to contemplate:

(1) The use of rates that meet the standards prescribed by this chapter; and

(2) Activities and practices that are not unfair, unreasonable, or otherwise

inconsistent with the provisions of this chapter.

At any time after such agreements are in effect, the commissioner may review the

practices and activities of the adherents to such agreements and if, after a

hearing, the commissioner finds that any such practice or activity is unfair or

unreasonable, or is otherwise inconsistent with the provisions of this chapter, the

commissioner may issue a written order to the parties and either require the

discontinuance of such acts or revoke approval of any such agreement.
N.D. Cent. Code § 26.1-43-02 — ND Code / Title 26.1 / Chapter 26.1-43 / Section 26.1-43-02
26.1-43-02. What legal expense insurance does not include
Status: in_force

26.1-43-02. What legal expense insurance does not include

Legal expense insurance does not include the provision of or reimbursement for legal

services incidental to other insurance coverages.
N.D. Cent. Code § 26.1-05-11 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-11
26.1-05-11. Statement of ownership required
Status: in_force

26.1-05-11. Statement of ownership required

Every person who is directly or indirectly the beneficial owner of more than ten percent of

any class of any equity security of a domestic stock insurance company, or who is a director or

an officer of the company, shall file in the office of the commissioner within ten days after

becoming beneficial owner, director, or officer a statement, in the form the commissioner

prescribes, of the amount of all equity securities of the company of which the person is the

beneficial owner. Within ten days after the close of each month when there has been a change

in ownership during the month, the person shall file in the office of the commissioner a

statement, in the form the commissioner prescribes, indicating the person's ownership at the

close of the month and any changes in the person's ownership which occurred during the

month.
N.D. Cent. Code § 26.1-16-23 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-23
26.1-16-23. Secretary of society to levy assessments - Notice to members - Distribution of proceeds of assessments
Status: in_force

26.1-16-23. Secretary of society to levy assessments - Notice to members -

Distribution of proceeds of assessments.

Upon approval of a claim arising from the death of a member, the secretary of the society, if

the mortuary fund is insufficient to pay the claim, shall levy an assessment upon the

membership in accordance with the provisions of the membership certificate of the deceased

member. Notice of the assessment must be mailed to each member at the member's last

post-office address as given to the secretary. The notice must state:

1. The name and address of the deceased member.

2. The maximum benefit payable upon the member's certificate.

3. The amount of the assessment.

4. The date upon which the assessment shall become delinquent.

Upon the expiration of the period within which payment of the assessment may be made and

the further period specified in the notice of cancellation required under section 26.1-16-22, the

secretary shall pay to the beneficiary of the deceased member the proceeds of the assessment

in the secretary's possession and available for that purpose.
N.D. Cent. Code § 26.1-38.1-09 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-09
26.1-38.1-09. Prevention of insolvencies
Status: in_force

26.1-38.1-09. Prevention of insolvencies

1. To aid in the detection and prevention of member insurer insolvencies or impairments,

it is the duty of the commissioner:

a. To notify the commissioners of all the other states, territories of the United States,

and the District of Columbia when the commissioner takes any of the following

actions against a member insurer:

(1) Revokes its license;

(2) Suspends its license; or

(3) Makes any formal order that the member insurer restrict its premium writing,

obtain additional contributions to surplus, withdraw from the state, reinsure

all or any part of its business, or increase capital, surplus, or any other

account for the security of policy owners, contract owners, certificate

holders, or creditors.

(4) Such notice must be mailed to all commissioners within thirty days following

the action taken or the date on which such action occurs.

b. To report to the board of directors when the commissioner has taken any of the

actions set forth in subdivision a or has received a report from any other

commissioner indicating that any such action has been taken in another state.

Such report to the board of directors must contain all significant details of the

action taken or the report received from another commissioner.

c. To report to the board of directors when the commissioner has reasonable cause

to believe from any examination, whether completed or in process, of any

member insurer that such insurer may be an impaired or insolvent insurer.

d. To furnish to the board of directors the national association of insurance

commissioners insurance regulatory information system ratios and listings of

companies not included in the ratios developed by the national association of

insurance commissioners and the board may use the information contained

therein in carrying out its duties and responsibilities under this section. Such

report and the information contained therein must be kept confidential by the

board of directors until such time as made public by the commissioner or other

lawful authority.

2. The commissioner may seek the advice and recommendations of the board of

directors concerning any matter affecting the commissioner's duties and

responsibilities regarding the financial condition of member insurers of insurers or

health maintenance organizations seeking admission to transact business in this state.

3. The board of directors, upon majority vote, may make reports and recommendations to

the commissioner upon any matter germane to the solvency, liquidation, rehabilitation,

or conservation of any member insurer or germane to the solvency of any insurer or

health maintenance organization seeking to do business in this state. Such reports

and recommendations may not be considered public documents.

4. The board of directors, upon majority vote, may notify the commissioner of any

information indicating any member insurer may be an impaired or insolvent insurer.

5. The board of directors, upon majority vote, may make recommendations to the

commissioner for the detection and prevention of member insurer insolvencies.
N.D. Cent. Code § 26.1-07-16 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-16
26.1-07-16. Offset - Limitations
Status: repealed

26.1-07-16. Offset - Limitations

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-33-04 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-04
26.1-33-04. Single premium and nonparticipating life policies
Status: in_force

26.1-33-04. Single premium and nonparticipating life policies

A single premium life insurance policy may be issued in any form prescribed in this chapter

omitting therefrom provisions or portions thereof applicable only to other than single premium

policies. A nonparticipating life insurance policy may be issued in any form prescribed in this

chapter if the policy contains a provision that the policy is nonparticipating, and the policy omits

clauses for participation in the surplus of the company.
N.D. Cent. Code § 26.1-35-00.2 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-00.2
26.1-35-00.2. Application of valuation manual - Changes to valuation manual - Requirements of valuation manual
Status: in_force

26.1-35-00.2. Application of valuation manual - Changes to valuation manual -

Requirements of valuation manual.

1. Except as provided under subsections 4 or 6 of section 26.1-35-00.2, for policies

issued on or after the operative date of the valuation manual, the standard prescribed

in the valuation manual is the minimum standard of valuation required under

subsection 2 of section 26.1-35-01.

2. Unless the commissioner or a change in the valuation manual specifies a later

effective date, changes to the valuation manual become effective on January first

following the date the commissioner adopts the changes. The commissioner may

adopt changes to the valuation manual if the valuation manual has been adopted by

the national association of insurance commissioners by an affirmative vote

representing:

a. At least three-fourths of the members of the national association of insurance

commissioners voting, but not less than a majority of the total membership; and

b. Members of the national association of insurance commissioners representing

jurisdictions totaling greater than seventy-five percent of the direct premiums

written as reported in the following annual statements most recently available

before the vote in paragraph a: life, accident and health annual statements;

health annual statements; or fraternal annual statements.

3. The valuation manual must specify all of the following:

a. Minimum valuation standards for and definitions of the policies or contracts

subject to subsection 2 of section 26.1-35-01. The minimum valuation standards

must be:

(1) The commissioners reserve valuation method for life insurance contracts,

other than annuity contracts, subject to subsection 2 of section 26.1-35-01;

(2) The commissioners annuity reserve valuation method for annuity contracts

subject to subsection 2 of section 26.1-35-01; and

(3) Minimum reserves for all other policies or contracts subject to subsection 2

of section 25.1-35-01.

b. Which policies or contracts or types of policies or contracts that are subject to the

requirements of a principle-based valuation in subsection 1 of section 26.1-35-12

and the minimum valuation standards consistent with those requirements.

c. For policies and contracts subject to a principle-based valuation under section

26.1-35-12.

(1) Requirements for the format of reports to the commissioner under

subdivision c of subsection 2 of section 26.1-35-12 and which must include

information necessary to determine if the valuation is appropriate and in

compliance with this chapter;

(2) Assumptions must be prescribed for risks over which the insurer does not

have significant control or influence; and

(3) Procedures for corporate governance and oversight of the actuarial function,

and a process for appropriate waiver or modification of such procedures.

d. For policies not subject to a principle-based valuation under section 26.1-35-12,

the minimum valuation standard must:

(1) Be consistent with the minimum standard of valuation before the operative

date of the valuation manual; or

(2) Develop reserves that quantify the benefits and guarantees, and the

funding, associated with the contracts and their risks at a level of

conservatism that reflects conditions that include unfavorable events that

have a reasonable probability of occurring.

e. Other requirements, including those relating to reserve methods, models for

measuring risk, generation of economic scenarios, assumptions, margins, use of

insurer experience, risk measurement, disclosure, certifications, reports, actuarial

opinions and memorandums, transition rules, and internal controls.

f. The data and form of the data required under section 26.1-35-13, with whom the

data must be submitted, and may specify other requirements including data

analyses and reporting of analyses.

4. In the absence of a specific valuation requirement or if a specific valuation requirement

in the valuation manual is not, in the opinion of the commissioner, in compliance with

this chapter, with respect to such requirements, the insurer shall comply with minimum

valuation standards prescribed by the commissioner by rule.

5. The commissioner may employ or contract with a qualified actuary, at the expense of

the insurer, to perform an actuarial examination of the insurer and opine on the

appropriateness of any reserve assumption or method used by the insurer, or to

review and opine on an insurer's compliance with any requirement set forth in this

chapter. The commissioner may rely upon the opinion regarding provisions contained

within this chapter, of a qualified actuary engaged by the commissioner of another

state, district, or territory of the United States.

6. The commissioner may require an insurer to change any assumption or method that,

in the opinion of the commissioner, is necessary in order to comply with the

requirements of the valuation manual or this chapter; and the insurer shall adjust the

reserves as required by the commissioner. The commissioner may take other

disciplinary action as permitted under this title.
N.D. Cent. Code § 26.1-05-33 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-33
26.1-05-33. Dividends to be paid by domestic fire insurance company from surplus profits only - Compensation
Status: reserved

26.1-05-33. Dividends to be paid by domestic fire insurance company from surplus

profits only - Compensation.

A domestic fire insurance company may not declare any dividend except from the surplus

profits arising from its business. In estimating the surplus profits, there must be reserved as

unearned premiums a sum equal to forty percent of the amount of premiums on all unexpired

risks and policies, and there also must be reserved all sums due the company on bonds,

mortgages, stocks, and book accounts upon which no part of the principal or accrued interest

has been paid during the year preceding the estimate of the profits and upon which suit for

foreclosure or collection has been commenced, or a judgment upon which has remained

unsatisfied for more than one year.
N.D. Cent. Code § 26.1-35-07 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-07
26.1-35-07. Minimum reserves
Status: in_force

26.1-35-07. Minimum reserves

1. An insurer's aggregate reserves for all life insurance policies, excluding disability and

accidental death benefits, issued after June 30, 1977, may not be less than the

aggregate reserves calculated in accordance with the methods set forth in sections

26.1-35-05, 26.1-35-06, 26.1-35-09, and 26.1-35-10 and the mortality table or tables

and rate or rates of interest used in calculating nonforfeiture benefits for the policies.

2. The aggregate reserves for all policies, contracts, and benefits may not be less than

the aggregate reserves determined by the qualified actuary to be necessary to render

the opinion required by section 26.1-35-01.1.
N.D. Cent. Code § 26.1-25-07 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-07
26.1-25-07. Deviations
Status: repealed

26.1-25-07. Deviations

Repealed by S.L. 1991, ch. 302, § 26.
N.D. Cent. Code § 26.1-45-06 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-06
26.1-45-06. Pre-existing conditions
Status: in_force

26.1-45-06. Pre-existing conditions

1. No long-term care insurance policy or certificate other than a policy or certificate

issued to a group as defined in subdivision a of subsection 3 of section 26.1-45-01

may define "pre-existing condition" as more restrictive than meaning a condition for

which medical advice or treatment was recommended by, or received from a provider

of health care services, within six months preceding the effective date of coverage of

an insured person.

2. No long-term care insurance policy or certificate issued on a group long-term care

insurance policy other than a policy or certificate issued to a group as defined in

subdivision a of subsection 3 of section 26.1-45-01 may exclude coverage for a loss or

confinement that is the result of a pre-existing condition unless the loss or confinement

begins within six months following the effective date of coverage of an insured person.

3. The commissioner may extend the limitation periods set forth in this section as to the

specific age group categories or specific policy forms upon findings that the extension

is in the best interest of the public.

4. The limitation on defining a pre-existing condition does not prohibit an insurer from

using an application form designed to elicit the complete health history of an applicant,

and, on the basis of the answers on that application, from underwriting in accordance

with that insurer's established underwriting standards. Unless otherwise provided in

the policy or certificate, a pre-existing condition, regardless of whether it is disclosed

on the application, need not be covered until the waiting period described in

subsection 2 expires. No long-term care insurance policy or certificate may exclude or

use waivers or riders of any kind to exclude, limit, or reduce coverage or benefits for

specifically named or described pre-existing diseases or physical conditions beyond

the waiting period described in subsection 2.
N.D. Cent. Code § 26.1-13-32 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-32
26.1-13-32. Articles of incorporation and bylaws of mutual reinsurance company - Contents
Status: repealed

26.1-13-32. Articles of incorporation and bylaws of mutual reinsurance company -

Contents.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-42.1-13 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-13
26.1-42.1-13. Recognition of assessments in rates
Status: in_force

26.1-42.1-13. Recognition of assessments in rates

The rate and premiums charged for insurance policies to which this chapter applies must

include amounts sufficient to recoup a sum equal to the amounts paid to the association by the

member insurer less any amounts returned to the member insurer by the association. These

rates may not be determined to be excessive because they contain an amount reasonably

calculated to recoup assessments paid by the member insurer.
N.D. Cent. Code § 26.1-12-30 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-30
26.1-12-30. Determination of dividends
Status: in_force

26.1-12-30. Determination of dividends

In determining the rate of dividend due a given trade, occupation, or profession, if the

dividend is allowed, the income received and losses sustained must be tabulated for a period of

not less than five years immediately preceding the determination of the dividend rate, and the

return dividend to policyholders must be based upon the experience of such period after

deduction for expenses and allowances for reserves as required by law.
N.D. Cent. Code § 26.1-14-14 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-14
26.1-14-14. Services to the company
Status: in_force

26.1-14-14. Services to the company

Any licensed nonprofit health service plan by appropriate action of the board of directors or

board of trustees may enter into a contract with the company in accordance with section

26.1-14-07 for the furnishing of services to the company. In the performance of the services

under any contract, the contracting health service plan is subject to the provisions of this

chapter applying to the company.
N.D. Cent. Code § 26.1-12.1-04 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-04
26.1-12.1-04. Plan of reorganization - Contents
Status: in_force

26.1-12.1-04. Plan of reorganization - Contents

No insurer authorized to do business in this state may take part in a reorganization unless

the reorganization has first been approved by the commissioner in accordance with this chapter.

A reorganizing insurer shall file a plan of reorganization consistent with the requirements of this

section, approved by the affirmative vote of a majority of its board of directors, for review and

approval by the commissioner. The plan must include:

1. A description of the nature and content, or a copy, of the annual report and financial

statement to be sent to each eligible member.

2. An analysis of the benefits and risks attendant to the proposed reorganization,

including the rationale for the reorganization and analysis of the comparative benefits

and risks to the reorganizing insurer of the reorganization.

3. Information sufficient to demonstrate the financial condition of the reorganizing insurer

will not be affected adversely upon reorganization.

4. Information demonstrating that the reorganization will:

a. Establish a mutual insurance holding company with at least one stock insurance

company subsidiary, the majority of whose shares must be owned, either directly

or through an intermediate stock holding company, by the mutual insurance

holding company;

b. Ensure immediate membership in the mutual insurance holding company of all

existing eligible members of the reorganizing mutual insurance company;

c. Describe a plan providing for membership interest of future policyholders;

d. Include a copy of the proposed mutual insurance holding company's articles of

incorporation and bylaws specifying all membership rights;

e. Include a copy of the articles of incorporation and bylaws of the reorganizing

insurer, any proposed insurance company subsidiary, or intermediate holding

company subsidiary; and

f. Describe the number of members of the board of directors of the mutual

insurance holding company required to be policyholders.

5. Information demonstrating that upon an insolvency involving a stock insurance

company subsidiary of the mutual insurance holding company that resulted from the

reorganization, the assets of the mutual holding company will be available to satisfy

the policyholder obligations of the stock insurance company.

6. Information describing the mutual insurance holding company's general plans

regarding whether any accumulation or prospective accumulation of earnings by the

mutual insurance holding company which is or would be in excess of that determined

by the board of directors of the mutual insurance holding company to be necessary will

inure to the exclusive benefit of the policyholders of its insurance company

subsidiaries who are members.
N.D. Cent. Code § 26.1-36.3-08 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-08
26.1-36.3-08. Health benefit plan committee
Status: repealed

26.1-36.3-08. Health benefit plan committee

Repealed by S.L. 2013, ch. 236, § 6.
N.D. Cent. Code § 26.1-36.12-03 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-03
26.1-36.12-03. Personnel qualified to make adverse determinations
Status: in_force

26.1-36.12-03. Personnel qualified to make adverse determinations

A prior authorization review organization shall ensure all adverse determinations are made

by a licensed physician or licensed pharmacist. The reviewing individual:

1. Must have experience treating patients with the condition or illness for which the health

care service is being requested; and

2. Shall make the adverse determination under the clinical direction of one of the prior

authorization review organization's medical directors who is responsible for the health

care services provided to enrollees.
N.D. Cent. Code § 26.1-46-12 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-12
26.1-46-12. Binding effect of orders issued in United States district court
Status: in_force

26.1-46-12. Binding effect of orders issued in United States district court

An order issued by any district court of the United States enjoining a risk retention group

from soliciting or selling insurance, or operating, in any state or in all states or in any territory or

possession of the United States upon a finding that such a group is in a hazardous financial

condition is enforceable in the courts of the state.
N.D. Cent. Code § 26.1-26-49 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-49
26.1-26-49. Rulemaking authority
Status: in_force

26.1-26-49. Rulemaking authority

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

this chapter.
N.D. Cent. Code § 26.1-36.1-01 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-01
26.1-36.1-01. Medicare supplement policies - Definitions
Status: in_force

26.1-36.1-01. Medicare supplement policies - Definitions

For purposes of this chapter:

1. "Applicant" means:

a. In the case of an individual Medicare supplement policy or subscriber contract,

the person who seeks to contract for insurance benefits.

b. In the case of a group Medicare supplement policy or subscriber contract, the

proposed certificate holder.

2. "Certificate" means any certificate issued under a group Medicare supplement policy

which has been delivered or issued for delivery in this state.

3. "Medicare" means the Health Insurance for the Aged and Disabled Act, title XVIII of

the Social Security Act of 1965 [Pub. L. 92-603; 86 Stat. 1370 et seq.], as amended.

4. "Medicare supplement policy" means a group or individual accident and health

insurance policy or a subscriber contract of a health service corporation or a health

care plan of a health maintenance organization or preferred provider organization,

other than a policy issued pursuant to a contract under section 1876 of the federal

Social Security Act [42 U.S.C. 1395 et seq.] or an issued policy under a demonstration

project specified in 42 U.S.C. 1395ss(g)(1), which is advertised, marketed, or designed

primarily as a supplement to reimbursements under Medicare for the hospital, medical,

or surgical expenses of persons eligible for Medicare. The term does not include a

policy or contract of one or more employers or labor organizations, or of the trustees of

a fund established by one or more employers or labor organizations, or combination

thereof, for employees or former employees, or combination thereof, or for members

or former members, or combination thereof, of the labor organizations.
N.D. Cent. Code § 26.1-13-03 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-03
26.1-13-03. County mutual company has perpetual existence
Status: in_force

26.1-13-03. County mutual company has perpetual existence

Every county mutual insurance company has perpetual existence. If the articles of

incorporation of any company show that the existence of the company is other than perpetual,

the articles may be amended in the manner provided by law so as to extend the term of

existence of the corporation to show that it is perpetual.
N.D. Cent. Code § 26.1-17.1-25 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-25
26.1-17.1-25. Taxes
Status: in_force

26.1-17.1-25. Taxes

Every prepaid limited health service organization is subject to the tax provided in section

26.1-03-17 as it pertains to health maintenance organizations, and each prepaid limited health

service organization is entitled to the same tax deductions, reductions, abatements, and credits

that health maintenance organizations are entitled to receive.
N.D. Cent. Code § 26.1-53.1-26 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-26
26.1-53.1-26. Record filing and retention requirements
Status: in_force

26.1-53.1-26. Record filing and retention requirements

1. Upon demand by the commissioner, a discount plan organization shall file with the

commissioner a list of prospective member fees and charges associated with the

discount plan.

2. A copy of every form to be used by a discount plan organization, including the form for

the written document demonstrating membership in the plan and all advertising,

marketing materials, and brochures, must be retained by such organization and

available for inspection by the commissioner for at least five years from the date on

which the form was last used.
N.D. Cent. Code § 26.1-10.2-08 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-08
26.1-10.2-08. Sanctions - Penalty
Status: in_force

26.1-10.2-08. Sanctions - Penalty

Any insurer failing, without just cause, to timely file the own risk and solvency assessment

summary report as required in this chapter, after notice and hearing, shall pay a penalty of one

thousand dollars for each day's delay. The commissioner may reduce the penalty if the insurer

demonstrates to the commissioner the imposition of the penalty would constitute a financial

hardship to the insurer.
N.D. Cent. Code § 26.1-34-07 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-07
26.1-34-07. Disclosure if annuity contract does not provide cash surrender or death benefits
Status: in_force

26.1-34-07. Disclosure if annuity contract does not provide cash surrender or death

benefits.

Any annuity contract that does not provide cash surrender benefits or does not provide

death benefits at least equal to the minimum nonforfeiture amounts prior to the commencement

of any annuity payments must include a statement in a prominent place in the contract that such

benefits are not provided.
N.D. Cent. Code § 26.1-16-02 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-02
26.1-16-02. Chapter not applicable to fraternal benefit society
Status: in_force

26.1-16-02. Chapter not applicable to fraternal benefit society

This chapter does not apply to a fraternal benefit society as defined in chapter 26.1-15.1 nor

to a benefit society organized within and limited to members of a fraternal benefit society.
N.D. Cent. Code § 26.1-36-12 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12
26.1-36-12. Provisions prohibited in individual and group accident and health insurance policies, group health plans, and nonprofit health service contracts
Status: in_force

26.1-36-12. Provisions prohibited in individual and group accident and health

insurance policies, group health plans, and nonprofit health service contracts.

1. Any provision in any individual or group accident and health insurance policy,

employee welfare benefit plan, or nonprofit health service contract issued by any

insurance company, group health plan as defined in section 607(1) of the Employee

Retirement Income Security Act of 1974 [Pub. L. 99-272; 100 Stat. 281; 29 U.S.C.

1167(1)], or nonprofit health service corporation denying or prohibiting the insured,

participant, beneficiary, or subscriber from assigning to the department of health and

human services any rights to medical benefits coverage to which the insured,

participant, beneficiary, or subscriber is entitled under the policy, plan, or contract is

void. An individual or group insurance company or nonprofit health service corporation

shall recognize the assignment of medical benefits coverage completed by the

insured, participant, beneficiary, or subscriber, notwithstanding any provision contained

in the policy or contract to the contrary.

2. Any individual or group provision in any accident and health insurance policy,

employee welfare benefit plan, or nonprofit health service corporation contract issued

by any insurance company, group health plan, or nonprofit health service corporation

which limits or excludes payments of medical benefits coverage to or on behalf of the

insured, participant, beneficiary, or subscriber if the insured, participant, beneficiary, or

subscriber is eligible for medical assistance benefits under chapter 50-24.1 is void.
N.D. Cent. Code § 26.1-46-08.1 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-08.1
26.1-46-08.1. Purchasing group taxation - Fees
Status: in_force

26.1-46-08.1. Purchasing group taxation - Fees

1. a. Premium taxes and taxes on premiums paid for coverage of risks resident or

located in this state by a purchasing group or any members of the purchasing

group must be:

(1) Imposed at the same rate and subject to the same interest, fines, and

penalties as applicable to premium taxes and taxes on premiums paid for

similar coverage from a similar insurance source by other insureds; and

(2) Paid first by the insurance source, and if not by the source, by the insurance

producer for the purchasing group, and if not by the insurance producer,

then by the purchasing group.

b. To the extent any administrative fee is charged under subsection 2, the fee may

not be considered a premium and is not subject to premium tax.

2. A purchasing group's administrator, manager, or other related party may charge

reasonable fees provided the fees are:

a. For reimbursement of expenses incurred by the administrator, manager, or other

related party in performing its administrative duties for the purchasing group; and

b. Disclosed to all members of the risk purchasing group on a form approved by the

commissioner which states the nature of the administrative duties for which the

fees will be charged along with separate itemization of the amount of fees to be

paid by each member.
N.D. Cent. Code § 26.1-07-21 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-21
26.1-07-21. Penalty
Status: in_force

26.1-07-21. Penalty

Any officer, director, or stockholder of any company, or any officer or employee of the state,

who violates, or consents to the violation of, this chapter is guilty of a class A misdemeanor.
N.D. Cent. Code § 26.1-30.1-06 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-06
26.1-30.1-06. Nonrenewal of commercial insurance policies - Notice required - Exceptions
Status: in_force

26.1-30.1-06. Nonrenewal of commercial insurance policies - Notice required -

Exceptions.

1. An insurer shall renew the policy, unless at least sixty days prior to the date of

expiration provided in the policy, a notice of intention not to renew the policy beyond

the agreed expiration date is made to the policyholder. The insurer shall include a

statement of the reasons for a nonrenewal with the notice.

2. This section does not apply if the policyholder has insured elsewhere, has accepted

replacement coverage, or has requested or agreed to nonrenewal.
N.D. Cent. Code § 26.1-41-17 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-17
26.1-41-17. Equitable allocation of losses among insurers
Status: repealed

26.1-41-17. Equitable allocation of losses among insurers

Repealed by S.L. 2005, ch. 274, § 6.
N.D. Cent. Code § 26.1-26.3-07 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-07
26.1-26.3-07. Rules
Status: in_force

26.1-26.3-07. Rules

The insurance commissioner may adopt reasonable rules for the implementation and

administration of the provisions of this chapter.
N.D. Cent. Code § 26.1-42.1-12 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-12
26.1-42.1-12. Tax exemption
Status: in_force

26.1-42.1-12. Tax exemption

The association is exempt from payment of all fees and all taxes levied by this state or any

political subdivision except taxes levied on property.
N.D. Cent. Code § 26.1-36-27 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-27
26.1-36-27. Dual choice option on group health coverage - Continuous coverage - Payment of benefits
Status: in_force

26.1-36-27. Dual choice option on group health coverage - Continuous coverage -

Payment of benefits.

If an employee, or an eligible dependent of the employee, transfers from coverage provided

by a nonprofit health service corporation or an insurance company to coverage offered by a

health maintenance organization or transfers from coverage offered by a health maintenance

organization to coverage offered by a nonprofit health service corporation or an insurance

company and is an inpatient of a hospital or alcoholism treatment center on the day the

coverage becomes effective, then the benefits for confinement on an inpatient basis of a

hospital or alcoholism treatment center must be provided by the nonprofit health service

corporation, insurance company, or health maintenance organization providing coverage on the

date the employee or the eligible dependent of the employee was confined as an inpatient of a

hospital or alcoholism treatment center so long as coverage is uninterrupted, medically

necessary, and directly related to the inpatient's stay.
N.D. Cent. Code § 26.1-12.1-14 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-14
26.1-12.1-14. Applicability
Status: in_force

26.1-12.1-14. Applicability

This chapter does not apply to any mutual insurance company that was formerly organized

as a nonprofit health service corporation.