N.D. Cent. Code § 26.1-03.2-03 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-03
26.1-03.2-03. Company action level event
Status: in_force

26.1-03.2-03. Company action level event

1. "Company action level event" means any of the following events:

a. The filing of a risk-based capital report by a health organization which indicates

that:

(1) The health organization's total adjusted capital is greater than or equal to its

regulatory action level risk-based capital but less than its company action

level risk-based capital; or

(2) If a health organization has total adjusted capital that is greater than or

equal to its company action level risk-based capital but less than the product

of its authorized control level risk-based capital and three and triggers the

trend test determined in accordance with the trend test calculation included

in the health risk-based capital instructions;

b. Notification by the commissioner to the health organization of an adjusted

risk-based capital report that indicates an event in subdivision a, provided the

health organization does not challenge the adjusted risk-based capital report

under section 26.1-03.2-07; or

c. If, pursuant to section 26.1-03.2-07, a health organization challenges an adjusted

risk-based capital report that indicates the event in subdivision a, the notification

by the commissioner to the health organization that the commissioner, after a

hearing, has rejected the health organization's challenge.

2. In the event of a company action level event, the health organization shall prepare and

submit to the commissioner a risk-based capital plan that:

a. Identifies the conditions that contribute to the company action level event;

b. Contains proposals of corrective actions which the health organization intends to

take and which would be expected to result in the elimination of the company

action level event;

c. Provides projections of the health organization's financial results in the current

year and at least the two succeeding years, both in the absence of proposed

corrective actions and giving effect to the proposed corrective actions, including

projections of statutory balance sheets, operating income, net income, capital and

surplus, and risk-based capital levels. The projections for both new and renewal

business may include separate projections for each major line of business and

separately identify each significant income, expense, and benefit component;

d. Identifies the key assumptions impacting the health organization's projections and

the sensitivity of the projections to the assumptions; and

e. Identifies the quality of, and problems associated with, the health organization's

business, including its assets, anticipated business growth and associated

surplus strain, extraordinary exposure to risk, mix of business, and use of

reinsurance, if any, in each case.

3. The risk-based capital plan must be submitted:

a. Within forty-five days of the company action level event; or

b. If the health organization challenges an adjusted risk-based capital report

pursuant to section 26.1-03.2-07, within forty-five days after notification to the

health organization that the commissioner, after a hearing, has rejected the health

organization's challenge.

4. Within sixty days after the submission by a health organization of a risk-based capital

plan to the commissioner, the commissioner shall notify the health organization

whether the risk-based capital plan shall be implemented or is, in the judgment of the

commissioner, unsatisfactory. If the commissioner determines the risk-based capital

plan is unsatisfactory, the notification to the health organization must set forth the

reasons for the determination and may set forth proposed revisions that will render the

risk-based capital plan satisfactory in the judgment of the commissioner. Upon

notification from the commissioner, the health organization shall prepare a revised

risk-based capital plan, which may incorporate by reference any revisions proposed by

the commissioner, and shall submit the revised risk-based capital plan to the

commissioner:

a. Within forty-five days after the notification from the commissioner; or

b. If the health organization challenges the notification from the commissioner under

section 26.1-03.2-07, within forty-five days after a notification to the health

organization that the commissioner has, after a hearing, rejected the health

organization's challenge.

5. In the event of a notification by the commissioner to a health organization that the

health organization's risk-based capital plan or revised risk-based capital plan is

unsatisfactory, the commissioner, subject to the health organization's right to a hearing

under section 26.1-03.2-07, may specify in the notification that the notification

constitutes a regulatory action level event.

6. Every domestic health organization that files a risk-based capital plan or revised

risk-based capital plan with the commissioner shall file a copy of the risk-based capital

plan or revised risk-based capital plan with the insurance commissioner in any state in

which the health organization is authorized to do business if:

a. The state has a risk-based capital provision substantially similar to subsection 1

of section 26.1-03.2-08; and

b. The insurance commissioner of that state has notified the health organization of

its request for the filing in writing, in which case the health organization shall file a

copy of the risk-based capital plan or revised risk-based capital plan in that state

no later than the later of:

(1) Fifteen days after the receipt of notice to file a copy of its risk-based capital

plan or revised risk-based capital plan with the state; or

(2) The date on which the risk-based capital plan or revised risk-based capital

plan is filed under subsections 3 and 4.
N.D. Cent. Code § 26.1-50-04 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-04
26.1-50-04. Loan administration
Status: in_force

26.1-50-04. Loan administration

An application for a loan from the fund must contain the information prescribed by the

governing board. Except as provided in this section, information contained in applications for

loans from the fund is confidential. The Bank of North Dakota shall review each loan application,

report to the governing board whether the applicant represents a primary sector business

project, and make a recommendation to the governing board to either approve or disapprove

the loan application. The Bank of North Dakota shall administer all loans issued by the fund and

shall receive from the fund a service fee of twenty-five basis points on all loans in place. The

insurance commissioner may examine the fund and activities of insurers in connection with the

fund to assure compliance with this title. The fund shall pay for the costs of an examination and

no credit may be allowed any insurer for payment of examination costs as otherwise provided

under section 26.1-03-17.
N.D. Cent. Code § 26.1-18.1-23 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-23
26.1-18.1-23. Confidentiality of medical information and limitation of liability
Status: in_force

26.1-18.1-23. Confidentiality of medical information and limitation of liability

1. Any data or information pertaining to the diagnosis, treatment, or health of any enrollee

or applicant obtained from the person or from any provider by any health maintenance

organization must be held in confidence and may not be disclosed to any person

except to the extent that it may be necessary to carry out the purposes of this chapter,

or upon the express consent of the enrollee or applicant, or pursuant to statute or court

order for the production of evidence or the discovery thereof, or in the event of claim or

litigation between the person and the health maintenance organization wherein the

data or information is pertinent. A health maintenance organization is entitled to claim

any statutory privileges against the disclosure which the provider who furnished the

information to the health maintenance organization is entitled to claim.

2. A person who, in good faith and without malice, takes any action or makes any

decision or recommendation as a member, agent, or employee of a health care review

committee or who furnishes any records, information, or assistance to such a

committee is not subject to liability for civil damages or any legal action in

consequence of the action, nor is the health maintenance organization which

established the committee or the officers, directors, employees, or agents of the health

maintenance organization liable for the activities of any person. This section may not

be construed to relieve any person of liability arising from treatment of a patient.

3. a. The information considered by a health care review committee and the records of

their actions and proceedings are confidential and not subject to subpoena or

order to produce except in proceedings before the appropriate state licensing or

certifying agency, or in an appeal, if permitted, from the committee's findings or

recommendations. No member of a health care review committee, or officer,

director, or other member of a health maintenance organization or its staff

engaged in assisting the committee, or any person assisting or furnishing

information to the committee may be subpoenaed to testify in any judicial or

quasi-judicial proceeding if the subpoena is based solely on the activities.

b. Information considered by a health care review committee and the records of its

actions and proceedings which are used pursuant to subdivision a by a state

licensing or certifying agency or in an appeal must be kept confidential and is

subject to the same provision concerning discovery and use in legal actions as

are the original information and records in the possession and control of a health

care review committee.

4. To fulfill its obligations under section 26.1-18.1-06, the health maintenance

organization shall have access to treatment records and other information pertaining to

the diagnosis, treatment, or health status of any enrollee.
N.D. Cent. Code § 26.1-52-10 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-10
26.1-52-10. Examinations and audits
Status: in_force

26.1-52-10. Examinations and audits

The commissioner shall examine the facility every three years. The facility shall submit a

financial report and an annual report to the commissioner by April first of each year. The report

must include premiums written, losses incurred, loss-adjusting expenses incurred, underwriting

expenses, claims losses, and assessments.
N.D. Cent. Code § 26.1-26.6-06 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-06
26.1-26.6-06. Access to jails
Status: in_force

26.1-26.6-06. Access to jails

Every person who holds a valid bail bond agent license issued by the insurance

commissioner is entitled to equal access to the jails of the state for the purpose of making bond,

subject to the provisions of this chapter and the rules adopted in the manner provided by law.

Jail personnel, law enforcement officers, and court personnel may not suggest, recommend,

advise, or promote a particular bail bond agent. Each jail shall furnish a space convenient to the

telephones in the booking area to be used to hold business cards of bail bond agents.
N.D. Cent. Code § 26.1-34.1-04 — ND Code / Title 26.1 / Chapter 26.1-34.1 / Section 26.1-34.1-04
26.1-34.1-04. Contents of annuity contract or policy form
Status: in_force

26.1-34.1-04. Contents of annuity contract or policy form

Each charitable annuity contract or policy form used or issued by the corporation must

include at least the following information:

1. The value of the property to be transferred;

2. The amount of the periodic annuity benefits to be paid;

3. The manner in which and the intervals at which payment is to be made;

4. The age of the person during whose life payment is to be made; and

5. The reasonable value as of the date of the agreement of the benefits thereby created.
N.D. Cent. Code § 26.1-02.2-02 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-02
26.1-02.2-02. Exclusive regulation
Status: in_force

26.1-02.2-02. Exclusive regulation

Notwithstanding any other provision of law, this chapter establishes the exclusive state

standards applicable to licensees for data security, the investigation of a cybersecurity event,

and notification to the commissioner.
N.D. Cent. Code § 26.1-30.1-01.2 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-01.2
26.1-30.1-01.2. Policy transfer
Status: in_force

26.1-30.1-01.2. Policy transfer

1. A policy transferred to an insurer within the same insurance holding company system

is not subject to sections 26.1-30.1-02, 26.1-30.1-03, 26.1-30.1-03.1, and

26.1-30.1-06.

2. The transferring insurer shall give notice to the policyholder of the policy transfer.
N.D. Cent. Code § 26.1-07-17 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-17
26.1-07-17. Priority of distribution of assets
Status: repealed

26.1-07-17. Priority of distribution of assets

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-26-13 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-13
26.1-26-13. Insurance agent - Application - Age - Appointment by insurer
Status: repealed

26.1-26-13. Insurance agent - Application - Age - Appointment by insurer

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-06.1-12 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-12
26.1-06.1-12. Rehabilitation orders
Status: in_force

26.1-06.1-12. Rehabilitation orders

1. An order to rehabilitate the business of a domestic insurer, or an alien insurer

domiciled in this state, shall appoint the commissioner and successor commissioners

in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession

of the assets of the insurer and to administer them under the general supervision of

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

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

principal business of the company is conducted, or the county in which its principal

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

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

The order to rehabilitate the insurer shall by operation of law vest title to all assets of

the insurer in the rehabilitator.

2. Any order issued under this section must require accounting to the court by the

rehabilitator. Accounting must be at such intervals as the court specifies in its order,

but no less frequently than semiannually. Each accounting must include a report

concerning the rehabilitator's opinion as to the likelihood that a plan under

subsection 4 of section 26.1-06.1-13 will be prepared by the rehabilitator and the

timetable for doing so.

3. Entry of an order of rehabilitation does not constitute an anticipatory breach of any

contracts of the insurer nor is it grounds for retroactive revocation or retroactive

cancellation of any contracts of the insurer, unless such revocation or cancellation is

done by the rehabilitator pursuant to section 26.1-06.1-13.
N.D. Cent. Code § 26.1-46-10 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-10
26.1-46-10. Penalties
Status: in_force

26.1-46-10. Penalties

A risk retention group which violates any provision of this chapter is subject to fines and

penalties applicable to licensed insurers generally, including revocation of its certificate of

authority to do business in this state.
N.D. Cent. Code § 26.1-06.1-03 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-03
26.1-06.1-03. Definitions
Status: in_force

26.1-06.1-03. Definitions

For the purposes of this chapter:

1. "Ancillary state" means any state other than a domiciliary state.

2. "Creditor" is a person having any claim, whether matured or unmatured, liquidated or

unliquidated, secured or unsecured, absolute, fixed, or contingent.

3. "Delinquency proceeding" means any proceeding instituted against an insurer for the

purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer, and any

summary proceeding under section 26.1-06.1-09. "Formal delinquency proceeding"

means any liquidation or rehabilitation proceeding.

4. "Doing business" includes any of the following acts, whether effected by mail or

otherwise:

a. The issuance or delivery of contracts of insurance to residents of this state;

b. The solicitation of applications for such contracts, or other negotiations

preliminary to the execution of such contracts;

c. The collection of premiums, membership fees, assessments, or other

consideration for such contracts;

d. The transaction of matters subsequent to execution of such contracts and arising

out of them;

e. Operating under a license or certificate of authority, as an insurer, issued by the

commissioner; or

f. Any other act specified in section 26.1-02-06 as the transaction of an insurance

business.

5. "Domiciliary state" means the state in which an insurer is incorporated or organized or,

in the case of an alien insurer, its state of entry.

6. "Fair consideration" is given for property or obligation:

a. When in exchange for property or obligation, as a fair equivalent therefor, and in

good faith, property is conveyed or services are rendered or an obligation is

incurred or an antecedent debt is satisfied; or

b. When property or obligation is received in good faith to secure a present advance

or antecedent debt in an amount not disproportionately small as compared to the

value of the property or obligation obtained.

7. "Foreign country" means any other jurisdiction not in any state.

8. "General assets" means all property, real, personal, or otherwise, not specifically

mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of

specified persons or classes of persons. As to specifically encumbered property,

"general assets" includes all property or its proceeds in excess of the amount

necessary to discharge the sum or sums secured thereby. Assets held in trust and on

deposit for the security or benefit of all policyholders or all policyholders and creditors,

in more than a single state, shall be treated as general assets.

9. "Guaranty association" means the North Dakota insurance guaranty association

created by chapter 26.1-42.1 or the North Dakota life and health insurance guaranty

association created by chapter 26.1-38.1, and any other similar entity now or hereafter

created by the legislative assembly for the payment of claims of insolvent insurers.

"Foreign guaranty association" means any similar entity now in existence in or

hereafter created by the legislature of any other state.

10. "Insolvency" or "insolvent" means:

a. For an insurer issuing only assessable fire insurance policies:

(1) The inability to pay any obligation within thirty days after it becomes

payable; or

(2) If an assessment be made within thirty days after such date, the inability to

pay the obligation thirty days following the date specified in the first

assessment notice issued after the date of loss.

b. For any other insurer, that it is unable to pay its obligations when they are due, or

when its admitted assets do not exceed its liabilities plus the greater of:

(1) Any capital and surplus required by law for its organization; or

(2) The total par or stated value of its authorized and issued capital stock.

c. As to any insurer licensed to do business in this state as of July 7, 1991, which

does not meet the standard established under subdivision b, the term

"insolvency" or "insolvent" means, for a period not to exceed three years from

July 7, 1991, that it is unable to pay its obligations when they are due or that its

admitted assets do not exceed its liabilities plus any required capital contribution

ordered by the commissioner under provisions of the insurance law.

d. For purposes of this subsection, "liabilities" includes reserves required by statute,

by rule, or by specific requirements imposed by the commissioner upon a subject

company at the time of admission or a later time.

11. "Insurer" means any person who has done, purports to do, is doing, or is licensed to

do an insurance business, and is or has been subject to the authority of, or to

liquidation, rehabilitation, reorganization, supervision, or conservation by any other

state. For purposes of this chapter, any other persons included under section

26.1-06.1-02 shall be deemed to be insurers.

12. "Policyholder" includes a certificate holder.

13. "Preferred claim" means any claim with respect to which the terms of this chapter

accord priority of payment from the general assets of the insurer.

14. "Receiver" means receiver, liquidator, rehabilitator, or conservator as the context

requires.

15. "Reciprocal state" means any state other than this state in which in substance and

effect subsection 1 of section 26.1-06.1-17 and sections 26.1-06.1-51, 26.1-06.1-52,

26.1-06.1-54, 26.1-06.1-55, and 26.1-06.1-56 are in force, and in which provisions are

in force requiring that the commissioner or equivalent official be the receiver of a

delinquent insurer, and in which some provision exists for the avoidance of fraudulent

conveyances and preferential transfers.

16. "Secured claim" means any claim secured by mortgage, trust deed, pledge, deposit as

security, escrow, or otherwise, but not including special deposit claims or claims

against general assets. The term also includes claims which have become liens upon

specific assets by reason of judicial process.

17. "Special deposit claim" means any claim secured by a deposit made pursuant to

statute for the security or benefit of a limited class or classes of persons, but not

including any claim secured by general assets.

18. "State" means any state, district, or territory of the United States and the Panama

Canal Zone.

19. "Transfer" includes the sale and every other and different mode, direct or indirect, of

disposing of or of parting with property or with an interest therein, or with the

possession thereof or of fixing a lien upon property or upon an interest therein,

absolutely or conditionally, voluntarily, by or without judicial proceedings. The retention

of a security title to property delivered to a debtor shall be deemed a transfer suffered

by the debtor.
N.D. Cent. Code § 26.1-54-01 — ND Code / Title 26.1 / Chapter 26.1-54 / Section 26.1-54-01
26.1-54-01. American health benefit exchange
Status: in_force

26.1-54-01. American health benefit exchange

To ensure that an American health benefit exchange is created in the state, the

commissioner and the department of health and human services shall:

1. Plan for the implementation of an American health benefit exchange for the state that

facilitates the purchase of qualified health benefit plans; provides for the establishment

of a small business health options program that is designed to assist qualified small

employers in facilitating the enrollment of their employees in qualified health benefit

plans offered in the small group market; implements eligibility determination and

enrollment of individuals in the state's medical assistance program and the state's

children's health insurance program; provides simplification; provides coordination

among medical assistance, the children's health insurance program, and the state

health insurance exchange; and meets the requirements of the Patient Protection and

Affordable Care Act of 2010 [Pub. L. 111-148] as amended by the Health Care and

Education Reconciliation Act of 2010 [Pub. L. 111-152]. The legislative assembly may

consider establishing one exchange that will provide services to both qualified

individuals and qualified small employers;

2. Subject to section 3 of chapter 225 of the 2011 Session Laws, take all actions

necessary to ensure that the exchange is determined, not later than January 1, 2013,

by the federal government to be ready to operate not later than January 1, 2014, and

that the exchange is operating on or after January 1, 2014;

3. Subject to section 3 of chapter 225 of the 2011 Session Laws, consider whether to

seek federal grant funds for the planning and implementation of the exchange and

administer all funds appropriated or made available for the purpose of carrying out the

provisions of this chapter;

4. Subject to section 3 of chapter 225 of the 2011 Session Laws, contract with outside

entities as necessary to provide services necessary to implement the exchange; and

5. Collaborate with the information technology department as necessary and appropriate

in completing the responsibilities set forth in this section.
N.D. Cent. Code § 26.1-06.1-17 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-17
26.1-06.1-17. Liquidation orders
Status: in_force

26.1-06.1-17. Liquidation orders

1. An order to liquidate the business of a domestic insurer must appoint the

commissioner and successor commissioners in office as liquidator and must direct the

liquidator forthwith to take possession of the assets of the insurer and to administer

them under the general supervision of the court. The liquidator must be vested by

operation of law with the title to all of the property, contracts, and rights of action, and

all of the books and records of the insurer, wherever located, as of the entry of the final

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

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

principal office or place of business is located or, in the case of real estate, with the

recorder of the county where the property is located, imparts the same notice as a

deed, bill of sale, or other evidence of title duly filed or recorded with that recorder or

designated official.

2. Upon issuance of the order, the rights and liabilities of any such insurer and of its

creditors, policyholders, shareholders, members, and all other persons interested in its

estate become fixed as of the date of entry of the order of liquidation, except as

provided in sections 26.1-06.1-18 and 26.1-06.1-36.

3. An order to liquidate the business of an alien insurer domiciled in this state must be in

the same terms and have the same legal effect as an order to liquidate a domestic

insurer, except that the assets and the business in the United States must be the only

assets and business included therein.

4. At the time of petitioning for an order of liquidation, or at any time thereafter, the

commissioner, after making appropriate findings of an insurer's insolvency, may

petition the court for a judicial declaration of such insolvency. After providing such

notice and hearing as it deems proper, the court may make the declaration.

5. Any order issued under this section must require financial reports to the court by the

liquidator. Financial reports must include the assets and liabilities of the insurer and all

funds received or disbursed by the liquidator during the current period. Financial

reports must be filed within one year of the liquidation order and at least annually

thereafter.

6. a. Within five days of July 7, 1991, or, if later, within five days after the initiation of an

appeal of an order of liquidation, which order has not been stayed, the

commissioner shall present for the court's approval a plan for the continued

performance of the defendant company's policy claims obligations, including the

duty to defend insureds under liability insurance policies, during the pendency of

an appeal. Such plan must provide for the continued performance and payment

of policy claims obligations in the normal course of events, notwithstanding the

grounds alleged in support of the order of liquidation, including the ground of

insolvency. In the event the defendant company's financial condition will not, in

the judgment of the commissioner, support the full performance of all policy

claims obligations during the appeal pendency period, the plan may prefer the

claims of certain policyholders and claimants over creditors and interested parties

as well as other policyholders and claimants, as the commissioner finds to be fair

and equitable considering the relative circumstances of such policyholders and

claimants. The court shall examine the plan submitted by the commissioner and if

it finds the plan to be in the best interests of the parties, the court shall approve

the plan. No action may lie against the commissioner, or any deputies, agents,

clerks, assistants, or attorneys employed or appointed by the commissioner by

any party based on preference in an appeal pendency plan approved by the

court.

b. The appeal pendency plan does not supersede or affect the obligations of any

insurance guaranty association.

c. Any such plans must provide for equitable adjustments to be made by the

liquidator to any distributions of assets to guaranty associations, in the event that

the liquidator pays claims from assets of the estate, which would otherwise be the

obligations of any particular guaranty association but for the appeal of the order

of liquidation, such that all guaranty associations equally benefit on a pro rata

basis from the assets of the estate. Further, in the event an order of liquidation is

set aside upon any appeal, the company may not be released from delinquency

proceedings unless and until all funds advanced by any guaranty association,

including reasonable administrative expenses in connection therewith relating to

obligations of the company, are repaid in full, together with interest at the

judgment rate of interest or unless an arrangement for repayment thereof has

been made with the consent of all applicable guaranty associations.
N.D. Cent. Code § 26.1-17.1-10 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-10
26.1-17.1-10. Construction with other laws
Status: in_force

26.1-17.1-10. Construction with other laws

1. a. A prepaid limited health service organization organized under the laws of this

state must be deemed to be a domestic insurer for purposes of chapter 26.1-10

unless specifically exempted in writing from one or more of the provisions of such

act by the commissioner.

b. A prepaid limited health service organization is subject to chapter 26.1-04.

c. No other provision of the insurance code applies to a prepaid limited health

service organization unless such an organization is specifically mentioned

therein, or unless otherwise provided in this chapter.

2. The provision of limited health services by a prepaid limited health service organization

or other entity pursuant to this chapter may not be deemed to be the practice of

medicine or other healing arts.

3. Solicitation to arrange for or provide limited health services in accordance with this

chapter may not be construed to violate any provision of law relating to solicitation or

advertising by health professionals.
N.D. Cent. Code § 26.1-02-34 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-34
26.1-02-34. Rules of interpretation
Status: in_force

26.1-02-34. Rules of interpretation

In addition to the rules of interpretation under chapters 1-01 and 1-02, in interpreting this

title, a person, including the courts of this state, shall apply the Constitution of the United States

of America and the Constitution of North Dakota, this code, and the common law of this state. A

person may not apply, give weight to, or afford recognition to, the American Law Institute's

"Restatement of the Law, Liability Insurance" as an authoritative reference regarding

interpretation of North Dakota laws, rules, and principles of insurance law.
N.D. Cent. Code § 26.1-04-10 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-10
26.1-04-10. State's attorney to prosecute for discrimination or misrepresentation
Status: in_force

26.1-04-10. State's attorney to prosecute for discrimination or misrepresentation

Upon evidence satisfactory to the commissioner that section 26.1-04-05, 26.1-04-06,

26.1-04-07, or 26.1-04-17 has been violated by any person, the commissioner shall certify to the

state's attorney of the county in which the violation occurred all evidence of the violation in the

commissioner's possession, and the state's attorney shall prosecute the case.
N.D. Cent. Code § 26.1-40-23 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-23
26.1-40-23. Notice to transfer
Status: in_force

26.1-40-23. Notice to transfer

The insurer transferring a policy to an insurer within the same insurance holding company

system shall give notice to the policyholder of the transfer.
N.D. Cent. Code § 26.1-02-18 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-18
26.1-02-18. Stay of enforcement
Status: in_force

26.1-02-18. Stay of enforcement

If the defendant shows the district court that an appeal from the foreign decree is pending or

will be taken, or that a stay of execution has been granted, the court shall stay enforcement of

the foreign decree until the appeal is concluded, the time for appeal expires, or the stay of

execution expires or is vacated, upon proof that the defendant has furnished the security for the

satisfaction of the decree required by the state in which it was rendered. If the defendant shows

the district court any ground upon which enforcement of a decree of any district court of this

state would be stayed, the court shall stay enforcement of the foreign decree for an appropriate

period, upon requiring the same security for satisfaction of the decree as would be required in

this state.
N.D. Cent. Code § 26.1-06.1-33 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-33
26.1-06.1-33. Domiciliary liquidator's proposal to distribute assets
Status: in_force

26.1-06.1-33. Domiciliary liquidator's proposal to distribute assets

1. Within one hundred twenty days of a final determination of insolvency of an insurer by

the district court, the liquidator shall make application to the court for approval of a

proposal to disburse assets out of marshalled assets, from time to time as the assets

become available, to a guaranty association or foreign guaranty association having

obligations because of the insolvency. If the liquidator determines that there are

insufficient assets to disburse, the application required by this section must be

considered satisfied by a filing by the liquidator stating the reasons for this

determination.

2. The proposal to disburse assets referred to in subsection 1 must at least include

provisions for:

a. Reserving amounts for the payment of expenses of administration and the

payment of claims of secured creditors, to the extent of the value of the security

held, and the payment of claims falling within the priorities established in section

26.1-06.1-41, classes one and two;

b. Disbursement of the assets marshalled to date and subsequent disbursement of

assets as they become available;

c. Equitable allocation of disbursements to each of the guaranty associations and

foreign guaranty associations entitled thereto;

d. The securing by the liquidator from each of the associations entitled to

disbursements pursuant to this section of an agreement to return to the liquidator

such assets, together with income earned on assets previously disbursed, as

may be required to pay claims of secured creditors and claims falling within the

priorities established in section 26.1-06.1-41 in accordance with such priorities.

No bond may be required of any such association; and

e. A full report to be made by each association to the liquidator accounting for all

assets so disbursed to the association, all disbursements made therefrom, any

interest earned by the association on such assets, and any other matter as the

court may direct.

3. The liquidator's proposal shall provide for disbursements to the associations in

amounts estimated at least equal to the claim payments made or to be made thereby

for which such associations could assert a claim against the liquidator, and shall

further provide that if the assets available for disbursement from time to time do not

equal or exceed the amount of such claim payments made or to be made by the

association, then disbursements must be in the amount of available assets.

4. The liquidator's proposal shall, with respect to an insolvent insurer writing life or health

insurance or annuities, provide for disbursements of assets to any guaranty

association or any foreign guaranty association covering life or health insurance or

annuities or to any other entity or organization reinsuring, assuming, or guaranteeing

policies or contracts of insurance under the acts creating such associations.

5. Notice of such application must be given to the association in and to the

commissioners of insurance of each of the states. Any such notice must be deemed to

have been given when deposited in the United States certified mail, first-class postage

prepaid, at least thirty days prior to submission of the application to the court. Action

on the application may be taken by the court provided the above-required notice has

been given and provided further that the liquidator's proposal complies with

subdivisions a and b of subsection 2.
N.D. Cent. Code § 26.1-14-09 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-09
26.1-14-09. Reserves for malpractice claims
Status: in_force

26.1-14-09. Reserves for malpractice claims

1. The reserve maintained by the company for outstanding losses under insurance

against injury arising out of the rendering of or the failure to render professional

services by an insured for all policies written during the eight years immediately

preceding the date of the reserve determination must be seventy percent of the earned

premiums of each of the eight years less all losses and loss expense payments made

under policies written in the corresponding years.

2. In any event, the reserves for each of the eight years may not be less than the

aggregate of estimated unpaid losses and loss expenses for claims incurred under

liability policies written in the corresponding year computed on an individual case basis

as to cases known and reported, plus reserves in an amount estimated in the

aggregate to provide for the payment of all losses or claims incurred on or prior to the

date of valuation but not previously reported, including an amount estimated to provide

for the expenses of adjustment, settlement, or litigation of the losses or claims.
N.D. Cent. Code § 26.1-44-06.1 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-06.1
26.1-44-06.1. Reports and policy changes
Status: in_force

26.1-44-06.1. Reports and policy changes

1. If the insured's home state is this state, no later than March first of each year, each

surplus lines producer shall file with the commissioner on forms prescribed by the

commissioner an annual tax statement of all surplus lines insurance transacted during

the preceding calendar year, including:

a. Aggregate gross premiums written;

b. Aggregate return premiums; and

c. Amount of aggregate tax remitted.

2. An annual tax statement is not required to be filed if a surplus lines producer has

transacted no surplus lines insurance during the preceding calendar year.

3. a. If the insured's home state is this state, each surplus lines producer shall file with

the commissioner in the manner prescribed by the commissioner any surplus

lines insurance endorsement, audit, or cancellation as follows:

(1) After any change to the initial surplus lines insurance placement which

changes the insurance premium amount; or

(2) After the producer obtains knowledge of any change to the initial surplus

lines insurance placement which changes the insurance premium amount

and the producer is able to provide written proof to the commissioner of the

date the producer obtained knowledge of the change.

b. Any endorsement, audit, or cancellation subject to subdivision a must be filed no

later than March first for the calendar quarter ending the preceding

December thirty-first, June first for the calendar quarter ending the preceding

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

June thirtieth, or December first for the calendar quarter ending the preceding

September thirtieth of each year.
N.D. Cent. Code § 26.1-49-05 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-05
26.1-49-05. Contract filing - Approval
Status: in_force

26.1-49-05. Contract filing - Approval

The health provider cooperative shall file each contract between the cooperative and a

purchaser with the commissioner. The commissioner shall disapprove any contract:

1. In which the consideration paid for health services is unreasonably high in relationship

to the services provided.

2. That fails to include evidence of the specific procedures used to inform prospective

enrollees of any limitations imposed on the enrollee's right to receive care from a

health provider of the enrollee's choice.

3. Under which a health provider cooperative assumes a corridor of risk greater than

fifteen percent in its first year of operation, or greater than thirty percent in any year

thereafter.

Any actuarial costs incurred by the department in review of that filing must be borne by the

cooperative. The commissioner may adopt rules implementing this section.
N.D. Cent. Code § 26.1-36-10 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-10
26.1-36-10. Health policy and health service contract coordination of benefit provisions
Status: in_force

26.1-36-10. Health policy and health service contract coordination of benefit

provisions.

A group health insurance policy or a group health service contract may contain coordination

of benefit provisions for the control of overinsurance. An individual health insurance policy or

individual health service contract, except a specific disease, hospital indemnity, or other limited

benefit plan, may contain coordination of benefit provisions for the control of overinsurance.

These provisions must be in accordance with appropriate guidelines set forth in rules adopted

by the commissioner.
N.D. Cent. Code § 26.1-25-10.2 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10.2
26.1-25-10.2. Insurers and advisory organizations - Prohibited activity
Status: in_force

26.1-25-10.2. Insurers and advisory organizations - Prohibited activity

1. No insurer or advisory organization may:

a. Attempt to monopolize or combine or conspire with any other person to

monopolize an insurance market.

b. Engage in a boycott, on a concerted basis, of an insurance market.

2. a. No insurer may agree with any other insurer or with an advisory organization to

mandate adherence to or to mandate use of any rate, rating plan, rating

schedule, rating rule, policy or bond form, rate classification, rate territory,

underwriting rule, survey, inspection or similar material, except as needed to

develop statistical plans permitted by subsection 1. The fact that two or more

insurers, whether or not members or subscribers of an advisory organization, use

consistently or intermittently the same rates, rating plans, rating schedules, rating

rules, policy or bond forms, rate classifications, rate territories, underwriting rules,

surveys or inspections, or similar materials is not sufficient in itself to support a

finding that an agreement exists.

b. Two or more insurers having a common ownership or operating in this state

under common management or control may act in concert between or among

themselves with respect to any matters pertaining to those activities authorized in

this chapter as if they constituted a single insurer.

3. No insurer or advisory organization may make any arrangement with any other insurer,

advisory organization, or other person which has the purpose or effect of restraining

trade unreasonably or of substantially lessening competition in the business of

insurance.

4. In addition to the other prohibitions contained in this chapter, except as specifically

permitted under this section, no advisory organization may compile or distribute

recommendations relating to rates that include expenses other than loss adjustment

expenses, or profit.
N.D. Cent. Code § 26.1-03.2-01 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-01
26.1-03.2-01. Definitions
Status: in_force

26.1-03.2-01. Definitions

In this chapter, unless the context or subject matter otherwise requires:

1. "Adjusted risk-based capital report" means a risk-based capital report which has been

adjusted by the commissioner in accordance with section 26.1-03.2-02.

2. "Corrective order" means an order issued by the commissioner specifying corrective

actions which the commissioner has determined are required.

3. "Domestic health organization" means a health organization domiciled in this state.

4. "Foreign health organization" means a health organization that is licensed to do

business in this state but is not domiciled in this state.

5. "Health organization" means a health maintenance organization, prepaid limited health

service organization, nonprofit health service corporation, or other managed care

organization licensed by the commissioner to do business in this state. "Health

organization" does not include an organization that is licensed as either a life and

health insurer or a property and casualty insurer that is otherwise subject to either the

life or property and casualty risk-based capital requirements.

6. "Risk-based capital instructions" means the risk-based capital report including

risk-based capital instructions adopted by the national association of insurance

commissioners, as these risk-based capital instructions may be amended by the

national association of insurance commissioners from time to time in accordance with

the procedures adopted by the national association of insurance commissioners.

7. "Risk-based capital level" means a health organization's company action level

risk-based capital, regulatory action level risk-based capital, authorized control level

risk-based capital, or mandatory control level risk-based capital and:

a. "Authorized control level risk-based capital" means the number determined under

the risk-based capital formula in accordance with the risk-based capital

instructions.

b. "Company action level risk-based capital" means, with respect to any health

organization, the product of 2.0 and its authorized control level risk-based capital.

c. "Mandatory control level risk-based capital" means the product of .70 and the

authorized control level risk-based capital.

d. "Regulatory action level risk-based capital" means the product of 1.5 and its

authorized control level risk-based capital.

8. "Risk-based capital plan" means a comprehensive financial plan containing the

elements specified in subsection 2 of section 26.1-03.2-03. If the commissioner rejects

the risk-based capital plan, and it is revised by the health organization, with or without

the commissioner's recommendation, the plan must be called the "revised risk-based

capital plan".

9. "Risk-based capital report" means the report required in section 26.1-03.2-02.

10. "Total adjusted capital" means the sum of:

a. A health organization's statutory capital and surplus, net worth, as determined in

accordance with the statutory accounting applicable to the annual financial

statements required to be filed under section 26.1-03-07 or, in the case of a

health maintenance organization, section 26.1-18.1-08; and

b. Such other items, if any, as the risk-based capital instructions may provide.
N.D. Cent. Code § 26.1-26.4-05 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-05
26.1-26.4-05. Utilization review agent violations - Penalty
Status: in_force

26.1-26.4-05. Utilization review agent violations - Penalty

Whenever the commissioner has reason to believe that a utilization review agent subject to

this chapter has been or is engaged in conduct that violates section 26.1-26.4-03 or

26.1-26.4-04, the commissioner shall notify the utilization review agent of the alleged violation.

The utilization review agent has thirty days from the date the notice is received to respond to the

alleged violation.

If the commissioner believes that the utilization review agent has violated this chapter, or is

not satisfied that the alleged violation has been corrected, the commissioner shall conduct a

hearing on the alleged violation in accordance with chapter 28-32.

If, after the hearing, the commissioner determines that the utilization review agent has

engaged in violations of this chapter, the commissioner shall reduce the findings to writing and

shall issue and cause to be served upon the utilization review agent a copy of the findings and

an order requiring the utilization review agent to cease and desist from engaging in the

violations. The commissioner may also, at the commissioner's discretion, order:

1. Payment of a penalty of not more than ten thousand dollars for a violation that

occurred with such frequency as to indicate a general business practice; or

2. Suspension or revocation of the authority to do business in this state as a utilization

review agent if the utilization review agent knew that the act was in violation of this

chapter.
N.D. Cent. Code § 26.1-34.2-03 — ND Code / Title 26.1 / Chapter 26.1-34.2 / Section 26.1-34.2-03
26.1-34.2-03. Duties of insurers and insurance producers
Status: in_force

26.1-34.2-03. Duties of insurers and insurance producers

1. A producer, if making a recommendation of an annuity, shall act in the best interest of

the consumer under the circumstances known at the time the recommendation is

made, without placing the producer's or the insurer's financial interest ahead of the

consumer's interest. A producer has acted in the best interest of the consumer if the

producer has satisfied the following obligations regarding care, disclosure, conflict of

interest, and documentation:

a. (1) The producer, in making a recommendation, shall exercise reasonable

diligence, care, and skill to:

(a) Know the consumer's financial situation, insurance needs, and

financial objectives;

(b) Understand the available recommendation options after making a

reasonable inquiry into options available to the producer;

(c) Have a reasonable basis to believe the recommended option

effectively addresses the consumer's financial situation, insurance

needs, and financial objectives over the life of the product, as

evaluated in light of the consumer profile information; and

(d) Communicate the basis or bases of the recommendation.

(2) The requirements under this subdivision include making reasonable efforts

to obtain consumer profile information from the consumer before the

recommendation of an annuity.

(3) The requirements under this subdivision require a producer to consider the

types of products the producer is authorized and licensed to recommend or

sell which address the consumer's financial situation, insurance needs, and

financial objectives. This does not require analysis or consideration of any

products outside the authority and license of the producer or other possible

alternative products or strategies available in the market at the time of the

recommendation. A producer must be held to standards applicable to

producers with similar authority and licensure.

(4) The requirements under this subdivision do not create a fiduciary obligation

or relationship and only create a regulatory obligation as established in this

chapter.

(5) The consumer profile information, characteristics of the insurer, and product

costs, rates, benefits, and features are those factors generally relevant in

making a determination whether an annuity effectively addresses the

consumer's financial situation, insurance needs, and financial objectives, but

the level of importance of each factor under the care obligation of this

paragraph may vary depending on the facts and circumstances of a

particular case. However, each factor may not be considered in isolation.

(6) The requirements under this subdivision include having a reasonable basis

to believe the consumer would benefit from certain features of the annuity,

such as annuitization, death or living benefit, or other insurance-related

features.

(7) The requirements under this subdivision apply to the particular annuity as a

whole and the underlying subaccounts to which funds are allocated at the

time of purchase or exchange of an annuity, and riders and similar producer

enhancements, if any.

(8) The requirements under this subdivision do not mean the annuity with the

lowest one-time or multiple occurrence compensation structure necessarily

must be recommended.

(9) The requirements under this subdivision do not mean the producer has

ongoing monitoring obligations under the care obligation under this

paragraph, although such an obligation may be owed separately under the

terms of a fiduciary, consulting, investment advising, or financial planning

agreement between the consumer and the producer.

(10) In the case of an exchange or replacement of an annuity, the producer shall

consider the whole transaction, which includes taking into consideration

whether:

(a) The consumer will incur a surrender charge; be subject to the

commencement of a new surrender period; lose existing benefits,

such as death, living, or other contractual benefits; or be subject to

increased fees, investment advisory fees, or charges for riders and

similar product enhancements;

(b) The replacing product would benefit the consumer substantially in

comparison to the replaced product over the life of the product; and

(c) The consumer has had another annuity exchange or replacement and,

in particular, an exchange or replacement within the preceding sixty

months.

(11) This chapter may not be construed to require a producer to obtain a license

other than a producer license with the appropriate line of authority to sell,

solicit, or negotiate insurance in this state, including a securities license, in

order to fulfill the duties and obligations contained in this chapter; provided

the producer does not give advice or provide services that are otherwise

subject to securities laws or engage in any other activity requiring other

professional licenses.

b. (1) Before the recommendation or sale of an annuity, the producer prominently

shall disclose to the consumer on a form substantially similar to a model

form designed by the insurance department:

(a) A description of the scope and terms of the relationship with the

consumer and the role of the producer in the transaction;

(b) An affirmative statement on whether the producer is licensed and

authorized to sell the following products:

[1] Fixed annuities;

[2] Fixed indexed annuities;

[3] Variable annuities;

[4] Life insurance;

[5] Mutual funds;

[6] Stocks and bonds; and

[7] Certificates of deposit;

(c) An affirmative statement describing the insurers the producer is

authorized, contracted, or appointed, or otherwise able to sell

insurance products for, using the following descriptions:

[1] One insurer;

[2] From two or more insurers; or

[3] From two or more insurers although primarily contracted with one

insurer;

(d) A description of the sources and types of cash compensation and

noncash compensation to be received by the producer, including

whether the producer is to be compensated for the sale of a

recommended annuity by commission as part of premium or other

remuneration received from the insurer, intermediary, or other

producer or by fee as a result of a contract for advice or consulting

services; and

(e) A notice of the consumer's right to request additional information

regarding cash compensation described in subparagraph d.

(2) Upon request of the consumer or the consumer's designated representative,

the producer shall disclose:

(a) A reasonable estimate of the amount of cash compensation to be

received by the producer, which may be stated as a range of amounts

or percentages; and

(b) Whether the cash compensation is a one-time or multiple occurrence

amount, and if a multiple occurrence amount, the frequency and

amount of the occurrence, which may be stated as a range of

amounts or percentages.

(3) Before or at the time of the recommendation or sale of an annuity, the

producer must have a reasonable basis to believe the consumer has been

informed of various features of the annuity, such as the potential surrender

period and surrender charge; potential tax penalty if the consumer sells,

exchanges, surrenders or annuitizes the annuity; mortality and expense

fees; investment advisory fees; annual fees; potential charges for and

features of riders or other options of the annuity; limitations on interest

returns; potential changes in nonguaranteed elements of the annuity;

insurance and investment components; and market risk.

c. A producer shall identify and avoid or reasonably manage and disclose material

conflicts of interest, including material conflicts of interest related to an ownership

interest.

d. At the time of recommendation or sale the producer shall:

(1) Make a written record of any recommendation and the basis for the

recommendation subject to this chapter;

(2) Obtain a consumer-signed statement on a form substantially similar to a

model form established by the insurance department:

(a) A customer's refusal to provide the consumer profile information, if

any; and

(b) A customer's understanding of the ramifications of not providing the

customer's consumer profile information or providing insufficient

consumer profile information; and

(3) Obtain a consumer-signed statement on a form substantially similar to a

model form established by the insurance department acknowledging the

annuity transaction is not recommended if a customer decides to enter an

annuity transaction that is not based on the producer's recommendation.

e. A requirement applicable to a producer under this subsection applies to every

producer who has exercised material control or influence in the making of a

recommendation and has received direct compensation as a result of the

recommendation or sale, regardless of whether the producer has had any direct

contact with the consumer. Activities such as providing or delivering marketing or

educational materials, product wholesaling or other back office product support,

and general supervision of a producer do not, in and of themselves, constitute

material control or influence.

2. a. Except as provided under subdivision b, a producer does not have an obligation

to a consumer under subsection 1 or 3 related to any annuity transaction if:

(1) A recommendation was not made;

(2) A recommendation was made and was later found to have been prepared

based on materially inaccurate information provided by the consumer;

(3) A consumer refuses to provide relevant consumer profile information and

the annuity transaction is not recommended; or

(4) A consumer decides to enter an annuity transaction that is not based on a

recommendation of the producer.

b. An insurer's issuance of an annuity subject to subdivision a must be reasonable

under all the circumstances actually known to the insurer at the time the annuity

is issued.

3. a. Except as permitted under subdivision b, an insurer may not issue an annuity

recommended to a consumer unless there is a reasonable basis to believe the

annuity would effectively address the particular consumer's financial situation,

insurance needs, and financial objectives based on the consumer's consumer

profile information.

b. An insurer shall establish and maintain a supervision system that is reasonably

designed to achieve the insurer's and the insurer's producers' compliance with

this chapter, including the following:

(1) The insurer shall establish and maintain reasonable procedures to inform

the insurer's producers of the requirements of this chapter and shall

incorporate the requirements of this chapter into relevant producer training

manuals.

(2) The insurer shall establish and maintain standards for insurance producer

product training and shall maintain reasonable procedures to require the

insurer's producers to comply with the requirements of section

26.1-34.2-03.1.

(3) The insurer shall provide product-specific training and training materials that

explain all material features of the insurer's annuity products to the insurer's

producers.

(4) The insurer shall establish and maintain procedures for the review of each

recommendation before issuance of an annuity which are designed to

ensure there is a reasonable basis to determine that the recommended

annuity effectively would address the particular consumer's financial

situation, insurance needs, and financial objectives. Such review procedures

may apply a screening system for the purpose of identifying selected

transactions for additional review and may be accomplished electronically or

through other means, including physical review. Such an electronic or other

system may be designed to require additional review only of those

transactions identified for additional review by the selection criteria.

(5) The insurer shall establish and maintain reasonable procedures to detect

recommendations that are not in compliance with this paragraph and

paragraphs 1, 2, and 4. This may include confirmation of the consumer

profile information, systematic customer surveys, producer and consumer

interviews, confirmation letters, producer statements or attestations, and

programs of internal monitoring. This paragraph does not prevent an insurer

from complying with this paragraph by applying sampling procedures or by

confirming the consumer profile information or other required information

under this section after issuance or delivery of the annuity.

(6) The insurer shall establish and maintain reasonable procedures to assess,

before or upon issuance or delivery of an annuity, whether a producer has

provided to the customer the information required to be provided under this

section.

(7) The insurer shall establish and maintain reasonable procedures to identify

and address suspicious consumer refusals to provide consumer profile

information.

(8) The insurer shall establish and maintain reasonable procedures to identify

and eliminate any sales contests, sales quotas, bonuses, and noncash

compensation that are based on the sales of specific annuities within a

limited period of time. The requirements of this subdivision are not intended

to prohibit the receipt of health insurance, office rent, office support,

retirement benefits, or other employee benefits by employees as long as

those benefits are not based on the volume of sales of a specific annuity

within a limited period of time.

(9) Annually, the insurer shall provide a written report to senior management,

including to the senior manager responsible for audit functions, which details

a review, with appropriate testing, reasonably designed to determine the

effectiveness of the supervision system, the exceptions found, and

corrective action taken or recommended, if any.

c. (1) This subsection does not restrict an insurer from contracting for

performance of a function, including maintenance of procedures, required

under this subdivision. An insurer is responsible for taking appropriate

corrective action and may be subject to sanctions and penalties pursuant to

section 26.1-34.2-04, regardless of whether the insurer contracts for

performance of a function and regardless of the insurer's compliance with

paragraph 2.

(2) An insurer's supervision system under this subsection must include

supervision of contractual performance under this subsection. This includes

the following:

(a) Monitoring and, as appropriate, conducting audits to assure that the

contracted function is properly performed; and

(b) Annually, obtaining a certification from a senior manager who has

responsibility for the contracted function that the manager has a

reasonable basis to represent, and does represent, that the function is

properly performed.

d. An insurer is not required to include in the insurer's system of supervision:

(1) A producer's recommendations to consumers of products other than the

annuities offered by the insurer; or

(2) Include consideration of or comparison to options available to the producer

or compensation relating to those options other than annuities or other

products offered by the insurer.

4. A producer or an insurer may not dissuade, or attempt to dissuade, a consumer from:

a. Responding truthfully to an insurer's request for confirmation of the consumer

profile information;

b. Filing a complaint; or

c. Cooperating with the investigation of a complaint.

5. a. Recommendations and sales of annuities made in compliance with comparable

standards must satisfy the requirements under this chapter. This subsection

applies to recommendations and sales of annuities made by financial

professionals in compliance with business rules, controls, and procedures that

satisfy a comparable standard even if the standard would not otherwise apply to

the product or recommendation at issue. However, this subsection does not limit

the insurance commissioner's ability to enforce, including investigate, this

chapter. This subdivision does not limit the insurer's obligation to comply with

subdivision a of subsection 3 although the insurer may base the insurer's analysis

on information received from either the financial professional or the entity

supervising the financial professional.

b. For subdivision a to apply, an insurer shall:

(1) Monitor relevant conduct of the financial professional seeking to rely upon

subdivision a or the entity responsible for supervising the financial

professional, such as the financial professional's broker-dealer or an

investment advisor registered under federal or state securities laws using

information collected in the normal course of an insurer's business; and

(2) Provide to the entity responsible for supervising the financial professional

seeking to rely on subdivision a, such as the financial professional's broker-

dealer or investment advisor registered under federal or state securities

laws, information and reports that are reasonably appropriate to assist the

entity to maintain its supervision system.
N.D. Cent. Code § 26.1-30-02 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-02
26.1-30-02. Policy executed by gambling void
Status: in_force

26.1-30-02. Policy executed by gambling void

Every insurance policy executed by way of gaming or wagering is void.
N.D. Cent. Code § 26.1-10-03 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-03
26.1-10-03. Acquisition of control of or merger with domestic insurer - Penalties
Status: in_force

26.1-10-03. Acquisition of control of or merger with domestic insurer - Penalties

1. a. A person other than the issuer may not make a tender offer for or a request or

invitation for tenders of, or enter into any agreement to exchange securities for,

seek to acquire, or acquire, in the open market or otherwise, any voting security

of a domestic insurer if, after consummation, the person would, directly or

indirectly, or by conversion or by exercise of any right to acquire, be in control of

the insurer, and a person may not enter an agreement to merge with or otherwise

to acquire control of a domestic insurer or any person controlling a domestic

insurer unless, at the time the offer, request, or invitation is made or the

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

agreement is involved, the person has filed with the commissioner and has sent

to the insurer, a statement containing the information required by this section and

the offer, request, invitation, agreement, or acquisition has been approved by the

commissioner in the manner prescribed in this chapter.

b. For purposes of this section, any controlling person of a domestic insurer seeking

to divest the person's controlling interest in the domestic insurer, in any manner,

shall file with the commissioner, with a copy to the insurer, confidential notice of

the person's proposed divestiture at least thirty days before the cessation of

control. The commissioner shall determine those instances in which a party

seeking to divest or to acquire a controlling interest in an insurer, will be required

to file for and obtain approval of the transaction. The information remains

confidential until the conclusion of the transaction unless the commissioner

determines confidential treatment will interfere with enforcement of this section. If

the statement referred to in subdivision a is otherwise filed, this subdivision does

not apply.

c. With respect to a transaction subject to this section, the acquiring person shall file

a preacquisition notification with the commissioner which must contain the

information set forth in subdivision a of subsection 3 of section 26.1-10-03.1.

Failure to file the notification may result in penalties specified in subdivision e of

subsection 5 of section 26.1-10-03.1.

d. For purposes of this section, a domestic insurer includes any other person in

control of a domestic insurer unless the other person, as determined by the

commissioner, is either directly or through its affiliates primarily engaged in

business other than the business of insurance. For purposes of this section, the

term "person" does not include a securities broker holding, in the usual and

customary broker's function, less than twenty percent of the voting securities of

an insurer or of any person that controls an insurer.

2. The statement to be filed with the commissioner must be made under oath or

affirmation and must contain the following:

a. The name and address of each person by whom or on whose behalf the merger

or other acquisition of control referred to in subsection 1 is to be effected,

hereinafter called the "acquiring party":

(1) If the person is an individual, the individual's principal occupation and all

offices and positions held during the past five years, and any conviction of

crimes other than minor traffic violations during the past ten years.

(2) If the person is not an individual, a report of the nature of its business

operations during the past five years or for any lesser period as the person

and any predecessors thereof have been in existence; an informative

description of the business intended to be done by the person and the

person's subsidiaries; and a list of all individuals who are or who have been

selected to become directors or executive officers of the person, or who

perform or will perform functions appropriate to these positions. The list

must include for each individual the information required by this subsection.

b. The source, nature, and amount of the consideration used or to be used in

effecting the merger or other acquisition of control, a description of any

transaction that funds were or are to be obtained for any such purpose, including

any pledge of the insurer's stock, or the stock of any of the insurer's subsidiaries

or controlling affiliates, and the identity of persons furnishing the consideration;

provided, however, that if a source of the consideration is a loan made in the

lender's ordinary course of business, the identity of the lender must remain

confidential, if the person filing the statement so requests.

c. Fully audited financial information as to the earnings and financial condition of

each acquiring party for the preceding five fiscal years of each acquiring party, or

for any lesser period as the acquiring party and any predecessors thereof have

been in existence, and similar unaudited information as of a date not earlier than

ninety days prior to the filing of the statement.

d. Any plans or proposals which each acquiring party may have to liquidate the

insurer, to sell its assets or merge or consolidate it with any person, or to make

any other material change in its business or corporate structure or management.

e. The number of shares of any security referred to in subsection 1 which each

acquiring party proposes to acquire, and the terms of the offer, request, invitation,

agreement, or acquisition referred to in subsection 1, and a statement as to the

method used to arrive at the fairness of the proposal.

f. The amount of each class of any security referred to in subsection 1 which is

beneficially owned or concerning which there is a right to acquire beneficial

ownership by each acquiring party.

g. A full description of any contracts, arrangements, or understandings with respect

to any security referred to in subsection 1 in which any acquiring party is involved,

including transfer of any of the securities, joint ventures, loan or option

arrangements, puts or calls, guarantees of loans, guarantees against loss or

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

proxies. The description must identify the persons who have entered into the

contracts, arrangements, or understandings.

h. A description of the purchase of any security referred to in subsection 1 during

the twelve calendar months preceding the filing of the statement, by any acquiring

party, including the dates of purchase, names of the purchasers, and

consideration paid or agreed to be paid.

i. A description of any recommendations to purchase any security referred to in

subsection 1 made during the twelve calendar months preceding the filing of the

statement, by any acquiring party, or by anyone based upon interviews or at the

suggestion of the acquiring party.

j. Copies of all tender offers for, requests or invitations for tenders of, exchange

offers for, and agreements to acquire or exchange any securities referred to in

subsection 1, and, if distributed, of additional soliciting material relating thereto.

k. The term of any agreement, contract, or understanding made with or proposed to

be made with any broker-dealer as to solicitation of securities referred to in

subsection 1 for tender, and the amount of any fees, commissions, or other

compensation to be paid to broker-dealers with regard thereto.

l. An agreement by the person required to file the statement referred to in

subsection 1 to provide the annual report, specified in subsection 12 of section

26.1-10-04, for so long as control exists.

m. An acknowledgment by the person required to file the statement referred to in

subsection 1, that the person and all subsidiaries within the person's control in

the insurance holding company system will provide information to the

commissioner upon request as necessary to evaluate enterprise risk to the

insurer.

n. Any additional information the commissioner by rule prescribes as necessary or

appropriate for the protection of policyholders of the insurer or in the public

interest.

If the person required to file the statement referred to in subsection 1 is a

partnership, limited partnership, syndicate, or other group, the commissioner may

require that the information called for by subdivisions a through n must be given with

respect to each partner of the partnership or limited partnership, each member of the

syndicate or group, and each person who controls the partner or member. If any

partner, member, or person is a corporation or the person required to file the statement

referred to in subsection 1 is a corporation, the commissioner may require that the

information called for by subdivisions a through n must be given with respect to the

corporation, each officer and director of the corporation, and each person who is

directly or indirectly the beneficial owner of more than ten percent of the outstanding

voting securities of the corporation.

If any material change occurs in the facts set forth in the statement filed with the

commissioner and sent to the insurer pursuant to this section, an amendment setting

forth the change, together with copies of all documents and other material relevant to

the change, must be filed with the commissioner and sent to the insurer within two

business days after the person learns of the change.

3. If any offer, request, invitation, agreement, or acquisition referred to in subsection 1 is

proposed to be made by means of a registration statement under the Securities Act of

1933 or in circumstances requiring the disclosure of similar information under the

Securities Exchange Act of 1934, or under a state law requiring similar registration or

disclosure, the person required to file the statement referred to in subsection 1 may

utilize those documents in furnishing the information called for by that statement.

4. a. The commissioner shall approve any merger or other acquisition of control

referred to in subsection 1 unless, after a public hearing, the commissioner finds

that:

(1) After the change of control, the domestic insurer referred to in subsection 1

would not be able to satisfy the requirements for the issuance of a certificate

of authority to write the lines of insurance for which it is presently licensed.

(2) The effect of the merger or other acquisition of control would be substantially

to lessen competition in insurance in this state or tend to create a monopoly.

In applying the competitive standard in this subdivision:

(a) The information requirements of subdivision a of subsection 3 of

section 26.1-10-03.1 and the standards of subdivision b of

subsection 4 of section 26.1-10-03.1;

(b) The merger or other acquisition may not be disapproved if the

commissioner finds that any of the situations meeting the criteria

provided by subdivision c of subsection 4 of section 26.1-10-03.1

exist; and

(c) The commissioner may condition the approval of the merger or other

acquisition on the removal of the basis of disapproval within a

specified period of time.

(3) The financial condition of any acquiring party might jeopardize the financial

stability of the insurer or prejudice the interest of its policyholders.

(4) The plans or proposals which the acquiring party has to liquidate the insurer,

sell its assets or consolidate or merge it with any person, or to make any

other material change in its business or corporate structure or management,

are unfair and unreasonable to policyholders of the insurer and not in the

public interest.

(5) The competence, experience, and integrity of those persons who would

control the operation of the insurer are such that it would not be in the

interest of policyholders of the insurer and of the public to permit the merger

or other acquisition of control.

(6) The acquisition is likely to be hazardous or prejudicial to the insurance

buying public.

b. The public hearing referred to in subdivision a must be held within thirty days

after the statement required by subsection 1 is filed and at least twenty days'

notice must be given by the commissioner to the person filing the statement. Not

less than seven days' notice of the hearing must be given by the person filing the

statement to the insurer and to other persons designated by the commissioner.

The commissioner shall make a determination within the sixty-day period

preceding the effective date of the proposed transaction. At the hearing, the

person filing the statement, the insurer, any person to whom notice of hearing

was sent, and any other person whose interests may be affected have the right to

present evidence, examine and cross-examine witnesses, and offer oral and

written arguments and in connection therewith are entitled to conduct discovery

proceedings in the same manner allowed in district court of this state. All

discovery proceedings must be concluded not later than three days prior to the

hearing.

c. If the proposed acquisition of control will require the approval of more than one

commissioner, the public hearing referred to in subdivision b may be held on a

consolidated basis upon request of the person filing the statement referred to in

subsection 1. Within five days of making the request for a public hearing, the

person shall file the statement referred to in subsection 1 with the national

association of insurance commissioners. A commissioner may opt out of a

consolidated hearing and shall provide notice to the applicant of the opt out within

ten days of the receipt of the statement referred to in subsection 1. A hearing

conducted on a consolidated basis is public and must be held within the United

States before the commissioners of the states in which the insurers are

domiciled. The commissioners shall hear and receive evidence. A commissioner

may attend the hearing in person or by telecommunication.

d. In connection with a change of control of a domestic insurer, any determination by

the commissioner that the person acquiring control of the insurer must be

required to maintain or restore the capital of the insurer to the level required by

the laws and rules of this state must be made not later than sixty days after the

date of notification of the change in control submitted pursuant to subdivision a of

subsection 1.

e. The commissioner may retain at the acquiring person's expense any attorneys,

actuaries, accountants, and other experts not otherwise a part of the

commissioner's staff as may be reasonably necessary to assist the commissioner

in reviewing the proposed acquisition of control.

5. This section does not apply to:

a. Any transaction which is subject to the provisions of chapter 26.1-07, dealing with

the merger or consolidation of two or more insurers.

b. Any offer, request, invitation, agreement, or acquisition which the commissioner

by order exempts as not having been made or entered for the purpose and not

having the effect of changing or influencing the control of a domestic insurer or as

otherwise not comprehended within the purposes of this section.

6. The following is a violation of this section:

a. The failure to file any statement, amendment, or other material required to be

filed pursuant to subsection 1 or 2.

b. The effectuation or any attempt to effectuate an acquisition of control of,

divestiture of, or merger with, a domestic insurer without the approval of the

commissioner.

7. The courts of this state have jurisdiction over every person not resident, domiciled, or

authorized to do business in this state who files a statement with the commissioner

under this section, and over all actions involving the person arising out of violations of

this section, and each person is deemed to have performed acts equivalent to and

constituting appointment of the commissioner as the person's attorney upon whom

may be served all lawful process in any action, suit, or proceeding arising out of

violations of this section. Copies of all lawful process must be served on the

commissioner and transmitted by registered mail by the commissioner to the person at

the person's last-known address.
N.D. Cent. Code § 26.1-30.1-05 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-05
26.1-30.1-05. Longer term policies
Status: in_force

26.1-30.1-05. Longer term policies

A policy may be issued for a term longer than one year or for an indefinite term with a

clause providing for cancellation by the insurer for the reasons stated in section 26.1-30.1-02 by

giving a notice as required by section 26.1-30.1-03 at least thirty days prior to any anniversary

date.
N.D. Cent. Code § 26.1-26.5-07 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-07
26.1-26.5-07. Effective date
Status: in_force

26.1-26.5-07. Effective date

Within sixty days of August 1, 1993, each controlled insurer and each controlling insurance

broker must comply with the provisions of sections 26.1-26.5-03 and 26.1-26.5-04.
N.D. Cent. Code § 26.1-46-04 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-04
26.1-46-04. Compulsory associations
Status: in_force

26.1-46-04. Compulsory associations

1. No risk retention group may join or contribute financially to any insurance insolvency

guaranty fund, or similar mechanism, in this state, nor may any risk retention group, or

its insureds, receive any benefit from any such fund for claims arising out of the

operations of such risk retention group.

2. When a purchasing group obtains insurance covering its members' risks from an

insurer not authorized in this state or a risk retention group, no such risks, wherever

resided or located, may be covered by any insurance guaranty fund or similar

mechanism in this state.

3. When a purchasing group obtains insurance covering its members' risks from an

authorized insurer, only risks resident or located in this state may be covered by the

state guaranty fund subject to chapter 26.1-42.1.
N.D. Cent. Code § 26.1-26.6-05 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-05
26.1-26.6-05. Violations - Penalties
Status: in_force

26.1-26.6-05. Violations - Penalties

1. The commissioner may suspend, revoke, or refuse to continue, issue, or renew any

license issued under this chapter if, after notice to the licensee and hearing, the

commissioner finds as to the licensee any of the following conditions:

a. Recommending any particular attorney at law to handle the case in which the bail

bond agent has caused a bond to be issued under this chapter.

b. Forging the name of another to a bond or application for bond.

c. Soliciting business in or about any place for prisoners or persons confined,

arraigned, or in custody.

d. Paying a fee or rebate, or giving or promising anything of value to a jailer, trustee,

police officer or officer of the law, or any other person who has power to arrest or

hold in custody or to any public official or public employee in order to secure a

settlement, compromise, remission, or reduction of the amount of any bail bond

or entreatment thereof, or to secure, delay, or other advantage. This subdivision

does not apply to a jailer, police officer, or officer of the law who is not on duty and

who assists in the apprehension of a defendant.

e. Paying a fee or rebating or giving anything of value to an attorney in bail bond

matters, except in defense of any action on a bond.

f. Accepting anything of value from a principal other than a premium. Provided, the

bail bond agent may accept collateral security or other indemnity from the

principal which must be returned immediately upon final termination of liability on

the bond. Such collateral security or other indemnity required by the bail bond

agent must be reasonable in relation to the amount of the bond.

g. Willfully failing to return collateral security to the principal when the principal is

entitled to the security.

h. Knowingly employing a person whose insurance producer license has been

revoked, suspended, or denied in this or any other state.

i. Knowingly or intentionally executing a bail bond without collecting in full a

premium for the bond, at the premium rate as filed with and approved by the

commissioner.

j. Failing to pay any forfeiture as directed by a court and as required by this chapter.

2. For purposes of subdivisions f and g of subsection 1, a bail bond agent shall monitor

the status of bonds written by the bail bond agent to make timely return of the

collateral security to the principal. It is not a defense to administrative action under this

section that the bail bond agent did not know liability on the bond had been terminated

or that the principal was entitled to return of the security.

3. A bail bond agent or bail bond agency may not advertise as or hold itself out to be a

surety company.

4. A bail bond agent may not sign nor countersign any blank in any bond, nor give up

power of attorney to or otherwise authorize, anyone to countersign the bail bond

agent's name to bonds.

5. When a bail bond agent accepts collateral, the bail bond agent shall give a written

receipt for the collateral and this receipt must contain a full description of the collateral

received in the terms of redemption. The bail bond agent shall keep copies of all

receipts of the bonds to be placed in business to be available to the commissioner for

the commissioner's review.

6. The provisions and penalties under this section are in addition to those provided under
N.D. Cent. Code § 26.1-36.3-11 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-11
26.1-36.3-11. Standards to assure fair marketing
Status: in_force

26.1-36.3-11. Standards to assure fair marketing

1. Each small employer carrier shall actively market health benefit plan coverage to

eligible small employers in the state.

2. a. A small employer carrier or producer may not engage in the following activities,

directly or indirectly:

(1) Encouraging or directing small employers to refrain from filing an application

for coverage with the small employer carrier because of the health status,

claims experience, industry, occupation, or geographic location of the small

employer.

(2) Encouraging or directing small employers to seek coverage from another

carrier because of the health status, claims experience, industry, occupation,

or geographic location of the small employer.

b. Subdivision a does not apply to information provided by a small employer carrier

or producer to a small employer regarding the established geographic service

area or a restricted network provision of a small employer carrier.

3. a. A small employer carrier may not enter into any contract, agreement, or

arrangement, directly or indirectly, with a producer that provides for or results in

the compensation paid to a producer for the sale of a health benefit plan to be

varied because of the health status, claims experience, industry, occupation, or

geographic location of the small employer.

b. Subdivision a does not apply to a compensation arrangement that provides

compensation to a producer on the basis of percentage of premium, provided the

percentage does not vary because of the health status, claims experience,

industry, occupation, or geographic area of the small employer.

4. No small employer carrier may terminate, fail to renew, or limit its contract or

agreement of representation with a producer for any reason related to the health

status, claims experience, occupation, or geographic location of the small employers

placed by the producer with the small employer carrier.

5. No small employer carrier or producer may induce or otherwise encourage a small

employer to separate or otherwise exclude an employee from health coverage or

benefits provided in connection with the employee's employment.

6. Denial by a small employer carrier of an application for coverage from a small

employer must be in writing and must state the reason or reasons for the denial.

7. A violation of this section by a small employer carrier or a producer is an unfair trade

practice under section 26.1-04-03.

8. If a small employer carrier enters into a contract, agreement, or other arrangement

with a third-party administrator to provide administrative, marketing, or other services

related to the offering of health benefit plans to small employers in this state, the

third-party administrator is subject to this section as if it were a small employer carrier.
N.D. Cent. Code § 26.1-24-08 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-08
26.1-24-08. Security agreement to secure premium payment must be in separate instrument - Penalty
Status: in_force

26.1-24-08. Security agreement to secure premium payment must be in separate

instrument - Penalty.

It is unlawful for any insurance company, or any insurance producer therefor within this

state, to take or procure to be taken upon the property to be insured, or upon any other property,

a security agreement securing the payment of the premium due or to become due, including

policy fees, or any part thereof, unless the security agreement is printed or written upon a paper

which is separate and distinct from the application. Any security agreement given in violation of

this section is void. Any insurance company violating this section is guilty of a class A

misdemeanor and forfeits its right to do business in this state.
N.D. Cent. Code § 26.1-21-22 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-22
26.1-21-22. Publication of statement of fund - Biennial report
Status: repealed

26.1-21-22. Publication of statement of fund - Biennial report

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-26.8-05 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-05
26.1-26.8-05. Nonresident license reciprocity
Status: in_force

26.1-26.8-05. Nonresident license reciprocity

1. An individual applying for a nonresident public adjuster license shall apply to the

commissioner in the manner prescribed by the commissioner and declare under

penalty of denial, suspension, or revocation of the license that the statements made in

the application are true, correct, and complete to the best of the individual's knowledge

and belief. The commissioner shall approve the application if the commissioner

determines the applicant:

a. Is licensed as a resident public adjuster and in good standing in the individual's

home state and the home state awards nonresident public adjuster licenses to

residents of this state on the same basis as provided for in this chapter; and

b. Has paid the nonresident licensing fee prescribed in section 26.1-01-07.

2. The commissioner may verify the licensing status of a nonresident public adjuster

through the producer database maintained by the national association of insurance

commissioners, or the association's affiliates or subsidiaries.

3. As a condition to continuation of a nonresident public adjuster license, a nonresident

public adjuster shall maintain a resident public adjuster license in good standing in the

individual's home state.

4. A licensed nonresident public adjuster shall surrender immediately to the

commissioner the individual's nonresident public adjuster license and the

commissioner shall terminate the individual's nonresident public adjuster license if the

home state public adjuster license terminates for any reason, unless the individual has

been issued a license as a resident public adjuster in a new home state and the new

home state has reciprocity with this state. A licensed nonresident public adjuster shall

notify the commissioner of a change to a new home state as soon as possible, but no

later than thirty days after receiving a license as a resident public adjuster from the

new home state. The licensed nonresident public adjuster shall include both the new

and the old addresses in the notice to the commissioner.
N.D. Cent. Code § 26.1-12.1-10 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-10
26.1-12.1-10. Applicability of certain provisions
Status: in_force

26.1-12.1-10. Applicability of certain provisions

A mutual insurance holding company is deemed to be an insurer subject to

chapter 26.1-06.1 and is automatically a mandatory party to any proceeding under that chapter

involving an insurance company that, as a result of a reorganization according to

section 26.1-12.1-02 or 26.1-12.1-03, is a subsidiary of the mutual insurance holding company.

In any proceeding under chapter 26.1-06.1 involving the reorganized insurance company, the

assets of the mutual insurance holding company are considered to be the assets of the estate of

the reorganized insurance company for purposes of satisfying the claims of the reorganized

insurance company's policyholders. A mutual insurance holding company may not dissolve or

liquidate without the approval of the commissioner or as ordered by the district court according

to chapter 26.1-06.1. Chapter 26.1-12.2 is not applicable to a reorganization or merger

accomplished under this chapter.
N.D. Cent. Code § 26.1-36-12.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.2
26.1-36-12.2. Freedom of choice for pharmacy services
Status: in_force

26.1-36-12.2. Freedom of choice for pharmacy services

1. No third-party payer, including a health care insurer as defined in section 26.1-47-01,

providing pharmacy services and prescription drugs to any beneficiary may:

a. Prevent a beneficiary from selecting the pharmacy or pharmacist of the

beneficiary's choice to provide pharmaceutical goods and services, provided that

pharmacist or pharmacy is licensed in this state;

b. Impose upon any beneficiary selecting a participating or contracting provider a

copayment, fee, or other condition not equally imposed upon all beneficiaries in

the plan selecting a participating or contracting provider; or

c. Deny any pharmacy or pharmacist the right to participate as a preferred provider

under chapter 26.1-47 or as a contracting provider for any policy or plan, provided

the pharmacist or pharmacy is licensed in this state, and accepts the terms of the

third-party payer's contract.

2. Notwithstanding the provisions of subsection 1, the department of health and human

services may exclude, from participation in the medical assistance program

administered under chapter 50-24.1 and title XIX of the Social Security Act

[Pub. L. 89-97; 79 Stat. 343; 42 U.S.C. 1396 et seq.], as amended, any provider of

pharmacy services who does not agree to comply with state and federal requirements

governing the program, or who, after so agreeing, fails to comply with those

requirements.

3. Any provision in a health insurance policy in this state which violates the provisions in

subsection 1 is void.

4. Any person who violates this section is guilty of a class A misdemeanor and each

violation is a separate offense. The commissioner may levy an administrative penalty

not to exceed ten thousand dollars for a violation of this section.

5. The insurance commissioner shall enforce the provisions of this section.
N.D. Cent. Code § 26.1-15.1-35 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-35
26.1-15.1-35. Service of process
Status: in_force

26.1-15.1-35. Service of process

1. Every society authorized to do business in this state shall appoint in writing the

commissioner and each successor in office to be its true and lawful attorney upon

whom all lawful process in any action or proceeding against it may be served and

agrees that any lawful process against it which is served on the commissioner is of the

same legal force and validity as if served upon the society. The authority continues in

force so long as any liability of the society remains outstanding in this state. Copies of

the appointment, certified by the commissioner, are sufficient evidence thereof and

must be admitted in evidence with the same force and effect as the original.

2. Service may be made only upon the commissioner or upon any person in charge of

the commissioner's office. It must be made in duplicate and constitutes sufficient

service upon the society. When legal process against a society is served upon the

commissioner, the commissioner shall forthwith forward one of the duplicate copies by

registered mail, postage prepaid, directed to the secretary or corresponding officer. No

service may require a society to file its answer, pleading, or defense in less than

twenty days from the date of mailing the copy of the service to a society. Legal process

may not be served upon a society except in the manner herein provided.
N.D. Cent. Code § 26.1-26.5-04 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-04
26.1-26.5-04. Disclosure
Status: in_force

26.1-26.5-04. Disclosure

The insurance broker, prior to the effective date of the policy, shall deliver written notice to

the prospective insured disclosing the relationship between the insurance broker and the

controlled insurer, except that, if the business is placed through an insurance broker who is not

a controlling insurance broker, the controlling insurance broker shall retain a signed commitment

from the insurance broker that the insurance broker is aware of the relationship between the

insurer and the insurance broker and that the insurance broker has or will notify the insured.
N.D. Cent. Code § 26.1-40-12 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-12
26.1-40-12. Sanctions
Status: in_force

26.1-40-12. Sanctions

If the commissioner after hearing determines that an insurer has violated section

26.1-40-02, 26.1-40-10, or 26.1-40-11, the commissioner may require the insurer to accept the

application or written request for insurance coverage at a rate and on the same terms and

conditions as are available to its other risks with similar characteristics, or reinstate insurance

coverage to the end of the policy period; or continue insurance coverage at a rate and on the

same terms and conditions as are available to its other risks with similar characteristics. If the

commissioner has determined, after hearing, that any person has violated sections 26.1-40-02

through 26.1-40-12, the commissioner may issue a cease and desist order to restrain the

person from engaging in practices which violate these sections, or assess a penalty against the

person of up to five hundred dollars for each violation, or assess a penalty against the person of

up to five thousand dollars for each willful and knowing violation, or cancel, revoke, or refuse to

renew a company's certificate of authority to do business in this state.
N.D. Cent. Code § 26.1-24-06 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-06
26.1-24-06. Earned premium
Status: in_force

26.1-24-06. Earned premium

If a peril insured against has existed and the insurer has been liable for any period, however

short, the insured is not entitled to a return of premium so far as that particular risk is concerned

unless the insurance was for a definite period of time, in which case the insured is entitled to a

proportionate return under sections 26.1-24-03 and 26.1-24-05.
N.D. Cent. Code § 26.1-50-05 — ND Code / Title 26.1 / Chapter 26.1-50 / Section 26.1-50-05
26.1-50-05. Audited financial statement - Report of fund operations
Status: in_force

26.1-50-05. Audited financial statement - Report of fund operations

The governing board shall contract annually with a certified public accountant for

performance of an audit and preparation of audited financial statements of the fund prepared in

accordance with generally accepted accounting principles and a report containing an analysis of

the impact of the fund on the state's economy, business and employment activity generated by

loans from the fund, and the effects of that activity on state and local tax revenues. The

governing board shall provide the financial statements and report to the governor, the insurance

commissioner, and the legislative council and make copies available to the public. The cost of

the audit and preparation of financial statements and report must be paid from the fund.
N.D. Cent. Code § 26.1-11-10 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-10
26.1-11-10. Consent to service of process
Status: in_force

26.1-11-10. Consent to service of process

Service of process upon the commissioner as attorney for a foreign insurance company

doing business in this state is sufficient service upon the company.
N.D. Cent. Code § 26.1-17-12.1 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-12.1
26.1-17-12.1. Services of registered nurses - Denial of benefits prohibited
Status: repealed

26.1-17-12.1. Services of registered nurses - Denial of benefits prohibited

Repealed by S.L. 1995, ch. 246, § 32.
N.D. Cent. Code § 26.1-18.1-02 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-02
26.1-18.1-02. Establishment of health maintenance organizations
Status: in_force

26.1-18.1-02. Establishment of health maintenance organizations

1. Notwithstanding any law of this state to the contrary, any person may apply to the

commissioner for a certificate of authority to establish and operate a health

maintenance organization in compliance with this chapter. No person may establish or

operate a health maintenance organization in this state without obtaining a certificate

of authority under this chapter. A foreign corporation may qualify under this chapter,

subject to obtaining a certificate of authority as a foreign corporation under section

10-19.1-136 and compliance with all provisions of this chapter and other applicable

state laws.

2. Any health maintenance organization that has not previously received a certificate of

authority to operate as a health maintenance organization as of August 1, 1993, shall

submit an application for a certificate of authority under subsection 3 within thirty days

of August 1, 1993. Each applicant may continue to operate until the commissioner acts

upon the application. In the event that an application is denied under section

26.1-18.1-03, the applicant must thereafter be treated as a health maintenance

organization whose certificate of authority has been revoked.

3. Each application for a certificate of authority must be verified by an officer or

authorized representative of the applicant, must be in a form prescribed by the

commissioner, and must set forth or be accompanied by the following:

a. A copy of the organizational documents of the applicant, such as the articles of

incorporation, articles of association, partnership agreement, trust agreement, or

other applicable documents, and all amendments thereto.

b. A copy of the bylaws, rules, and regulations, or similar document, if any,

regulating the conduct of the internal affairs of the applicant.

c. A list of the names, addresses, and official positions and biographical information

on forms acceptable to the commissioner of the persons who are to be

responsible for the conduct of the affairs and day-to-day operations of the

applicant, including all members of the board of directors, board of trustees,

executive committee, or other governing board or committee and the principal

officers in the case of a corporation, or the partners or members in the case of a

partnership or association.

d. A copy of any contract form made or to be made between any class of providers

and the health maintenance organization and a copy of any contract made or to

be made between third-party administrators, marketing consultants, or persons

listed in subdivision c and the health maintenance organization.

e. A copy of the form of evidence of coverage to be issued to the enrollees.

f. A copy of the form of group contract, if any, which is to be issued to employers,

unions, trustees, or other organizations.

g. Financial statements showing the applicant's assets, liabilities, and sources of

financial support, including both a copy of the applicant's most recent and regular

certified financial statement and an unaudited current financial statement.

h. A financial feasibility plan that includes detailed enrollment projections, the

methodology for determining premium rates to be charged during the first twelve

months of operations certified by an actuary or other qualified person, a

projection of balance sheets, cash flow statements showing any capital

expenditures, purchase and sale of investments and deposits with the state, and

income and expense statements anticipated from the start of operations until the

organization has had net income for at least one year, and a statement as to the

sources of working capital as well as any other sources of funding.

i. A power of attorney duly executed by the applicant, if not domiciled in this state,

appointing the commissioner and the commissioner's successors in office, and

duly authorized deputies, as the true and lawful attorney of the applicant in and

for this state upon whom all lawful process in any legal action or proceeding

against the health maintenance organization on a cause of action arising in this

state may be served.

j. A statement or map reasonably describing the geographic area or areas to be

served.

k. A description of the internal grievance procedures to be utilized for the

investigation and resolution of enrollee complaints and grievances.

l. A description of the proposed quality assurance program, including the formal

organizational structure, methods for developing criteria, procedures for

comprehensive evaluation of the quality of care rendered to enrollees, and

processes to initiate corrective action and re-evaluation when deficiencies in

provider or organizational performance are identified.

m. A description of the procedures to be implemented to meet the protection against

insolvency requirements in section 26.1-18.1-12.

n. A list of the names, addresses, and license numbers of all providers with which

the health maintenance organization has agreements.

o. Such other information as the commissioner may require to make the

determinations required in section 26.1-18.1-03.

4. a. The commissioner may adopt rules as the commissioner deems necessary to the

proper administration of this chapter to require a health maintenance

organization, subsequent to receiving its certificate of authority, to submit the

information, modifications, or amendments to the items described in subsection 3

to the commissioner, either for the commissioner's approval or for information

only, prior to the effectuation of the modification or amendment, or to require the

health maintenance organization to indicate the modifications to the

commissioner at the time of the next succeeding site visit or examination.

b. Any modification or amendment for which the commissioner's approval is

required is deemed approved unless disapproved within thirty days, provided that

the commissioner may postpone the action for such further time, not exceeding

an additional thirty days, as necessary for proper consideration.
N.D. Cent. Code § 26.1-05-35 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-35
26.1-05-35. Participation in clearing corporations and book entry systems - Rulemaking authority
Status: in_force

26.1-05-35. Participation in clearing corporations and book entry systems -

Rulemaking authority.

A domestic insurance company may participate, subject to a written agreement with a

custodian and subject to rules adopted by the commissioner regarding such participation, in

clearing corporations and the federal reserve book entry system.
N.D. Cent. Code § 26.1-07.1-04 — ND Code / Title 26.1 / Chapter 26.1-07.1 / Section 26.1-07.1-04
26.1-07.1-04. Subject to state laws
Status: in_force

26.1-07.1-04. Subject to state laws

Any person or entity unable to show that it is subject to the jurisdiction of another agency of

this state, any subdivision thereof, or the federal government is subject to all appropriate

provisions of state law regarding the conduct of its business.
N.D. Cent. Code § 26.1-30.1-03 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-03
26.1-30.1-03. Notice
Status: in_force

26.1-30.1-03. Notice

Cancellation under subsections 2 through 9 of section 26.1-30.1-02 is not effective prior to

thirty days after notice to the policyholder. The notice of cancellation must contain a specific

reason for cancellation as provided in section 26.1-30.1-02. A policy may not be canceled for

nonpayment of premium pursuant to subsection 1 of section 26.1-30.1-02 unless the insurer, at

least ten days prior to the effective cancellation date, has given notice to the policyholder of the

amount of premium due and the due date. The notice must state the effect of nonpayment by

the due date. No cancellation for nonpayment of premium is effective if payment of the amount

due is made prior to the effective date set forth in the notice.
N.D. Cent. Code § 26.1-05-07.2 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-07.2
26.1-05-07.2. Effects of redomestication
Status: in_force

26.1-05-07.2. Effects of redomestication

In the discretion of the commissioner, the certificate of authority, insurance producer

appointments and licenses, rates, and other items in existence at the time an insurer licensed to

transact the business of insurance in this state transfers its corporate domicile to this state or

another state by merger, consolidation, or any other lawful method, continue in effect upon the

transfer if the insurer remains duly qualified to transact the business of insurance in this state.

An outstanding policy of a transferring insurer remains in effect and does not need to be

endorsed as to the new name of the company or its new location unless so ordered by the

commissioner. A transferring insurer shall file new policy forms with the commissioner on or

before the effective date of the transfer, but may use existing forms with appropriate

endorsements as approved by the commissioner. A transferring insurer shall notify the

commissioner of the details of the proposed transfer and shall file promptly any resulting

amendments to corporate documents filed or required to be filed with the commissioner.
N.D. Cent. Code § 26.1-29-18 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-18
26.1-29-18. Presumption of knowledge
Status: in_force

26.1-29-18. Presumption of knowledge

Each party to an insurance contract is bound to know all the general causes which are open

to the party's inquiry equally with that of the other and which may affect either the political or

material perils contemplated and all general usages of trade.
N.D. Cent. Code § 26.1-31.1-09 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-09
26.1-31.1-09. Examination authority
Status: in_force

26.1-31.1-09. Examination authority

1. A reinsurance intermediary is subject to examination by the commissioner. The

commissioner shall have access to all books, bank accounts, and records of the

reinsurance intermediary in a form usable to the commissioner.

2. A reinsurance intermediary-manager may be examined as if it was the reinsurer.
N.D. Cent. Code § 26.1-02-16 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-16
26.1-02-16. Verification - Notice of filing
Status: in_force

26.1-02-16. Verification - Notice of filing

At the time a foreign decree is filed in this state, the commissioner shall make and file with

the clerk of the appropriate district court an affidavit setting forth the name and last-known

post-office address of the defendant and verifying that the decree or order is a foreign decree.

Promptly upon receipt of the affidavit, the clerk shall mail notice of the filing of the foreign decree

to the defendant at the address contained in the affidavit and to the commissioner and shall

make a note of the mailing in the docket.
N.D. Cent. Code § 26.1-02-19 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-19
26.1-02-19. Fees
Status: in_force

26.1-02-19. Fees

Any person filing a foreign decree shall pay a filing fee as prescribed in subdivision d of

subsection 1 of section 27-05.2-03 to the clerk of court. Fees for docketing, transcriptions, or

other enforcement proceedings are as provided for decrees of the district court.
N.D. Cent. Code § 26.1-39-15 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-15
26.1-39-15. Statement of reasons for cancellation of property and casualty policies
Status: in_force

26.1-39-15. Statement of reasons for cancellation of property and casualty policies

The notice of cancellation must state or be accompanied by either a statement of the

reason for cancellation, or a statement that upon written request of the named insured, the

insurer will specify in writing the reason for cancellation. The written request must be mailed or

delivered to the insurer at least ten days prior to the effective date of cancellation or if

cancellation occurs pursuant to section 26.1-39-14, within ten days from the effective date of

cancellation. The insurer shall mail or deliver the reason to the named insured within ten days

after receipt of the written request.
N.D. Cent. Code § 26.1-53.1-25 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-25
26.1-53.1-25. Designation of compliance officer
Status: in_force

26.1-53.1-25. Designation of compliance officer

Each discount plan organization shall designate and provide the commissioner with the

name, address, and telephone number of the discount plan organization's compliance officer

responsible for ensuring compliance with this chapter.
N.D. Cent. Code § 26.1-41-08 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-08
26.1-41-08. Secured person exemption
Status: in_force

26.1-41-08. Secured person exemption

1. In any action against a secured person to recover damages because of accidental

bodily injury arising out of the ownership or operation of a secured motor vehicle in this

state, the secured person is exempt from liability to pay damages for:

a. Noneconomic loss unless the injury is a serious injury.

b. Economic loss to the extent of all basic no-fault benefits paid or to become

payable for such injury under this chapter after subtracting the same elements of

loss recoverable under any workforce safety and insurance law.

2. The exemption under subsection 1 does not apply unless the person who has

sustained accidental bodily injury is a person who may qualify for basic no-fault

benefits pursuant to section 26.1-41-06 and who is not excluded under section

26.1-41-07.
N.D. Cent. Code § 26.1-39-19 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-19
26.1-39-19. Immunity
Status: in_force

26.1-39-19. Immunity

There is no liability on the part of and no claim for relief arises against the commissioner,

any insurer or its authorized representatives, agents, or employees, any licensed insurance

producer, or any person furnishing information to an insurer as to reasons for a termination or

declination for any communication giving notice of or specifying the reasons for a declination or

termination or for any statement made in connection with an attempt to discover or verify the

existence of conditions which would be a reason for a declination or termination under these

sections. This section does not apply to statements made in bad faith with malice in fact.
N.D. Cent. Code § 26.1-10.3-05 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-05
26.1-10.3-05. Confidentiality
Status: in_force

26.1-10.3-05. Confidentiality

1. Documents, materials, or other information, including the corporate governance annual

disclosure, in the possession or control of the insurance department which are

obtained by, created by, or disclosed to the commissioner or any other person under

this chapter, are recognized by this state as being proprietary and to contain trade

secrets. All documents, materials, or other information is confidential by law and

privileged, is not subject to section 44-04-18, is not subject to subpoena, and is not

subject to discovery or admissible in evidence in any private civil action. However, the

commissioner may use the documents, materials, or other information in the

furtherance of any regulatory or legal action brought as a part of the commissioner's

official duties. The commissioner may not otherwise make the documents, materials,

or other information public without the prior written consent of the insurer. This section

may not be construed to require written consent of the insurer before the

commissioner may share or receive confidential documents, materials, or other

corporate governance annual disclosure-related information pursuant to subsection 3

to assist in the performance of the commissioner's regular duties.

2. Neither the commissioner nor any person that received documents, materials, or other

corporate governance annual disclosure-related information, through examination or

otherwise, while acting under the authority of the commissioner, or with which

documents, materials, or other information are shared pursuant to this chapter may be

permitted or required to testify in any private civil action concerning any confidential

documents, materials, or information subject to subsection 1.

3. In order to assist in the performance of the commissioner's regulatory duties, the

commissioner:

a. May, upon request, share documents, materials, or other corporate governance

annual disclosure-related information, including the confidential and privileged

documents, materials, or information subject to subsection 1, including

proprietary and trade secret documents and materials, with other state, federal,

and international financial regulatory agencies, including members of any

supervisory college as defined in section 26.1-10-06.1, with the national

association of insurance commissioners, and with third-party consultants

pursuant to section 26.1-10.3-06, if the recipient agrees in writing to maintain the

confidentiality and privileged status of the corporate governance annual

disclosure-related documents, materials, or other information and has verified in

writing the legal authority to maintain confidentiality; and

b. May receive documents, materials, or other corporate governance annual

disclosure-related information, including otherwise confidential and privileged

documents, materials, or information, including proprietary and trade secret

information or documents, from regulatory officials of other state, federal, and

international financial regulatory agencies, including members of any supervisory

college as defined in chapter 26.1-10, and from the national association of

insurance commissioners, and shall maintain as confidential or privileged any

documents, materials, or information received with notice or the understanding

that it is confidential or privileged under the laws of the jurisdiction that is the

source of the document, material, or information.

4. The sharing of information and documents by the commissioner pursuant to this

chapter does not constitute a delegation of regulatory authority or rulemaking, and the

commissioner is solely responsible for the administration, execution, and enforcement

of the provisions of this chapter.

5. A waiver of any applicable privilege or claim of confidentiality in the documents,

proprietary and trade secret materials, or other corporate governance annual

disclosure-related information does not occur as a result of disclosure of corporate

governance annual disclosure-related information or documents to the commissioner

under this section or as a result of sharing as authorized in this chapter.
N.D. Cent. Code § 26.1-41-10 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-10
26.1-41-10. Assignment of nonmedical benefits unenforceable - Exemption of benefits from process
Status: in_force

26.1-41-10. Assignment of nonmedical benefits unenforceable - Exemption of benefits

from process.

An agreement for assignment of any right to nonmedical benefits payable in the future is

unenforceable. Basic no-fault benefits are exempt from garnishment, attachment, execution,

and any other process or claim to the extent that wages or earnings are exempt under any

applicable law exempting wages or earnings from process or claims.
N.D. Cent. Code § 26.1-10.3-06 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-06
26.1-10.3-06. National association of insurance commissioners and third-party consultants
Status: in_force

26.1-10.3-06. National association of insurance commissioners and third-party

consultants.

1. The commissioner may retain, at the insurer's expense, third-party consultants,

including attorneys, actuaries, accountants, and other experts not otherwise a part of

the commissioner's staff as may be reasonably necessary to assist the commissioner

in reviewing the corporate governance annual disclosure and related information or the

insurer's compliance with this chapter.

2. Any persons retained under subsection 1 are under the direction and control of the

commissioner and shall act in a purely advisory capacity.

3. The national association of insurance commissioners and third-party consultants are

subject to the same confidentiality standards and requirements as the commissioner.

4. As part of the retention process, a third-party consultant shall verify to the

commissioner, with notice to the insurer, that the consultant is free of a conflict of

interest and has internal procedures in place to monitor compliance with a conflict and

to comply with the confidentiality standards and requirements of this chapter.

5. A written agreement with the national association of insurance commissioners or a

third-party consultant, or both, governing sharing and use of information provided

pursuant to this chapter must contain the following provisions and expressly require

the written consent of the insurer before making public information provided under this

chapter:

a. Specific procedures and protocols for maintaining the confidentiality and security

of corporate governance annual disclosure-related information shared with the

national association of insurance commissioners or a third-party consultant

pursuant to this chapter.

b. Procedures and protocols for sharing by the national association of insurance

commissioners only with other state regulators from states in which the insurance

group has domiciled insurers. The agreement must provide that the recipient

agrees in writing to maintain the confidentiality and privileged status of the

corporate governance annual disclosure-related documents, materials, or other

information and has verified in writing the legal authority to maintain

confidentiality.

c. A provision specifying that ownership of the corporate governance annual

disclosure-related information shared with the national association of insurance

commissioners or a third-party consultant remains with the insurance department

and the national association of insurance commissioner's or third-party

consultant's use of the information is subject to the direction of the commissioner.

d. A provision that prohibits the national association of insurance commissioners or

a third-party consultant from storing the information shared pursuant to this

chapter in a permanent database after the underlying analysis is completed.

e. A provision requiring the national association of insurance commissioners or

third-party consultant to provide prompt notice to the commissioner and to the

insurer or insurance group regarding any subpoena, request for disclosure, or

request for production of the insurer's corporate governance annual

disclosure-related information.

f. A requirement that the national association of insurance commissioners or a

third-party consultant consent to intervention by an insurer in any judicial or

administrative action in which the national association of insurance

commissioners or a third-party consultant may be required to disclose confidential

information about the insurer shared with the national association of insurance

commissioners or a third-party consultant pursuant to this chapter.
N.D. Cent. Code § 26.1-26.5-01 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-01
26.1-26.5-01. Definitions
Status: in_force

26.1-26.5-01. Definitions

As used in this chapter:

1. "Accredited state" means a state in which the insurance department or regulatory

agency has qualified as meeting the minimum financial regulatory standards

promulgated and established from time to time by the national association of insurance

commissioners.

2. "Control" or "controlled" has the meaning ascribed in chapter 26.1-10.

3. "Controlled insurer" means a licensed insurer which is controlled, directly or indirectly,

by an insurance broker.

4. "Controlling insurance broker" means an insurance broker who, directly or indirectly,

controls an insurer.

5. "Insurance broker" means an insurance broker or brokers or any other person, firm,

association, or corporation, when, for any compensation, commission, or other thing of

value, such person, firm, association, or corporation acts or aids in any manner in

soliciting, negotiating, or procuring the making of any insurance contract on behalf of

an insured other than the person, firm, association, or corporation.

6. "Licensed insurer" or "insurer" means any person, firm, association, or corporation duly

licensed to transact a property and casualty insurance business in this state. The

following, inter alia, are not licensed insurers for the purposes of this chapter:

a. All risk retention groups as defined in the Superfund Amendments

Reauthorization Act of 1986 [Pub. L. 99-499; 100 Stat. 1613] and the Risk

Retention Act [15 U.S.C. 3901 et seq.] and chapter 26.1-46.

b. All residual market pools and joint underwriting authorities or associations.

c. All captive insurers. For the purposes of this chapter, captive insurers are

insurance companies owned by another organization whose exclusive purpose is

to insure risks of the parent organization and affiliated companies or, in the case

of groups and associations, insurance organizations owned by the insureds

whose exclusive purpose is to insure risks to member organizations or group

members and their affiliates.
N.D. Cent. Code § 26.1-36-40 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-40
26.1-36-40. General penalty - License suspension or revocation
Status: in_force

26.1-36-40. General penalty - License suspension or revocation

Any person willfully violating any provision of this chapter or order of the commissioner

made in accordance with this chapter is guilty of a class A misdemeanor. The commissioner

may also suspend or revoke the license of an insurer or insurance producer for any such willful

violation.
N.D. Cent. Code § 26.1-36-07 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-07
26.1-36-07. Health insurance coverage for newborn and adopted children - Scope of coverage - Notification of birth or adoption
Status: in_force

26.1-36-07. Health insurance coverage for newborn and adopted children - Scope of

coverage - Notification of birth or adoption.

1. All individual and group health insurance policies providing coverage on an

expense-incurred basis and individual and group service or indemnity type contracts

issued by a nonprofit corporation which provide coverage for a family member of the

insured or subscriber must, as to the family members' coverage, also provide that the

health insurance benefits applicable for children are payable with respect to a newly

born child of the insured or subscriber from the moment of birth and are also payable

from the date of physical placement by a licensed child placement agency or by the

birth parent pursuant to chapter 14-15.1 with respect to an adopted child.

2. The coverage for newly born children and for children placed for adoption by a

licensed child placement agency or by the birth parent pursuant to chapter 14-15.1

consists of coverage of injury or sickness, including the necessary care and treatment

of medically diagnosed congenital defects and birth abnormalities.

3. If payment of a specific premium or subscription fee is required to provide coverage for

a child, the policy or contract may require that notification of birth of a newly born child

or child placed for adoption by a licensed child placement agency or by the birth parent

pursuant to chapter 14-15.1 and payment of the required premium or fees must be

furnished to the insurer or nonprofit service or indemnity corporation within thirty-one

days after the date of birth or date of physical placement by a licensed child placement

agency or by the birth parent pursuant to chapter 14-15.1 of the child in order to have

the coverage continue beyond the thirty-one-day period.
N.D. Cent. Code § 26.1-25-16 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-16
26.1-25-16. Rebates prohibited - Exception
Status: in_force

26.1-25-16. Rebates prohibited - Exception

1. An insurance producer may not knowingly charge, demand, or receive a premium for

any insurance policy except in accordance with this chapter. No insurer or employee of

an insurer, and no insurance producer, broker or agent may pay, allow, or give, or offer

to pay, allow, or give, directly or indirectly, as an inducement to insurance, or after

insurance has been effected, any rebate, discount, abatement, credit, or reduction of

the premium named in an insurance policy, or any special favor or advantage in the

dividends or other benefits to accrue on the policy, or any valuable consideration or

inducement whatever, not specified in the insurance policy, except to the extent

provided for in applicable filing. No insured named in an insurance policy, nor any

employee of the insured, may knowingly receive or accept, directly or indirectly, any

such rebate, discount, abatement, credit, or reduction of premium, or any such special

favor or advantage or valuable consideration or inducement. This section does not

prohibit the payment of commissions or other compensation to licensed insurance

producers, nor any insurer from allowing or returning to its participating policyholders,

members, or subscribers dividends, savings, or unabsorbed premium deposits. As

used in this section, "insurance" includes suretyship and "policy" includes bond and

federal crop insurance.

2. Notwithstanding any other provision in this section, if the cost does not exceed an

aggregate retail value of one hundred dollars per person per year, an insurance

producer may give a gift, prize, promotional article, logo merchandise, meal, or

entertainment activity directly or indirectly to a person in connection with marketing,

promoting, or advertising the business. As used in this subsection, "person" means the

named insured, policy owner, or prospective client or the spouse of any of these

individuals, but the term does not include a certificate holder, child, or employee of the

named insured, policy owner, or prospective client. Subject to the limits of this

subsection, an insurance producer may give a gift card for specific merchandise or

services such as a meal, gasoline, or car wash but may not give cash, a cash card,

any form of currency, or any refund or discount in premium. An insurance producer

may not condition the giving of a gift, prize, promotional article, logo merchandise,

meal, or entertainment activity on obtaining a quote or a contract of insurance.

Notwithstanding the limitation in this subsection, an insurance producer may conduct

raffles or drawings, if there is no financial cost to an entrant to participate, the drawing

or raffle does not obligate a participant to purchase insurance, the prizes are not

valued in excess of a reasonable amount determined by the commissioner, and the

drawing or raffle is open to the public. The raffle or drawing must be offered in a

manner that is not unfairly discriminatory and may not be contingent on the purchase,

continued purchase, or renewal of a policy. Notwithstanding the limitation in this

subsection, an insurance producer may make a donation to a nonprofit organization

that is exempt from federal taxation under Internal Revenue Code section 501(c)(3)

[26 U.S.C. 501(c)(3)] in any amount as long as the donation is not given as an

inducement to obtain a contract of insurance.

3. The provisions in this section may not be construed as including within the definition of

discrimination or rebates any of the following practices:

a. The offer or provision by an insurer or producer, by or through an employee, an

affiliate, or a third-party representative, of value-added products or services at no

or reduced cost if the products or services are not specified in the policy of

insurance if the product or service:

(1) Relates to the insurance coverage and is designed to satisfy one or more of

the following:

(a) Provide loss mitigation or loss control;

(b) Reduce claims costs or claim settlement costs;

(c) Provide education about liability risk or risk of loss to persons or

property;

(d) Monitor or assess risk, identify sources of risk, or develop strategies

for eliminating or reducing risk;

(e) Enhance health;

(f) Enhance financial wellness through items such as education of

financial planning services;

(g) Provide post-loss services;

(h) Incent behavioral changes to improve the health or reduce the risk of

death or disability of an individual defined as policyholder, potential

policyholder, certificate holder, potential certificate holder, insured,

potential insured, or applicant; or

(i) Assist in the administration of the employee or retiree benefit

insurance coverage.

(2) If offered by the insurer or producer, the insurer or producer, upon request,

shall ensure the person is provided with contact information to assist the

person with questions regarding the product or service.

(3) Is based on fair documented criteria and offered in a manner not unfairly

discriminatory. The documented criteria must be maintained by the insurer

or producer and produced at the request of the commissioner.

(4) Is reasonable in comparison to that person's premiums or insurance

coverage for the policy class.

b. If an insurer or producer does not have sufficient evidence, but has a good-faith

belief the product or service meets the criteria in subdivision a, the provision by

the insurer or producer of a product or service in a manner that is not unfairly

discriminatory as part of a pilot or testing program no longer than one year. An

insurer or producer shall notify the department of the pilot or testing program

offered to consumers in this state before launching and may proceed with the

program unless the department objects within twenty-one days of notice.

4. An insurer, producer, or representative of an insurer or producer may not offer or

provide insurance as an inducement to the purchase of another policy or otherwise

use of the words "free" or "no cost" or words of similar import in an advertisement.

5. The commissioner may adopt regulations when implementing the permitted practices

set forth in this regulation to ensure consumer protection. Consistent with applicable

law, the topics addressed by the regulations may include consumer data protections

and privacy, consumer disclosure, and unfair discrimination.
N.D. Cent. Code § 26.1-36.3-07 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-07
26.1-36.3-07. Small employer carrier reinsurance program
Status: repealed

26.1-36.3-07. Small employer carrier reinsurance program

Repealed by S.L. 2003, ch. 256, § 3.
N.D. Cent. Code § 26.1-08-05 — ND Code / Title 26.1 / Chapter 26.1-08 / Section 26.1-08-05
26.1-08-05. Minimum benefits of a qualified plan A
Status: repealed

26.1-08-05. Minimum benefits of a qualified plan A

Repealed by S.L. 1997, ch. 251, § 18.
N.D. Cent. Code § 26.1-22-02.1 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-02.1
26.1-22-02.1. Insurance against indirect losses
Status: in_force

26.1-22-02.1. Insurance against indirect losses

The office shall provide, upon request of an entity insured under the fund, coverage for an

indirect loss arising out of a peril insured against by the fund. The coverage provided by the

fund must be an amount that is subject to the underwriting guidelines developed by the office.
N.D. Cent. Code § 26.1-30-17 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-17
26.1-30-17. Breach of immaterial provision does not avoid policy unless otherwise provided
Status: in_force

26.1-30-17. Breach of immaterial provision does not avoid policy unless otherwise

provided.

An insurance policy may declare that a violation of specified provisions of the policy avoids

it. In the absence of such declaration, the breach of an immaterial provision does not avoid the

insurance policy.
N.D. Cent. Code § 26.1-44-04 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-04
26.1-44-04. Service of process
Status: in_force

26.1-44-04. Service of process

Any insurer desiring to transact any business under this chapter, by any surplus lines

producer in this state, shall appoint in writing the commissioner as its true and lawful attorney,

upon whom legal process in any action or proceeding against it must be served, and in the

writing, shall agree that any legal process against it, which is served upon the attorney, is of the

same legal force and validity as if served upon the insurer, and that the authority continues in

force so long as any liability remains outstanding in this state. Copies of the appointment

certified by the commissioner are sufficient evidence thereof and must be admitted in evidence

with the same force and effect as the original. Legal process may not be served upon the

insurer except as provided by this section. In any suit on a policy on behalf of the owner or

holder of the policy, the service of process must be made as provided by this section, but the

action must be prosecuted in the county of the policyholder's residence.
N.D. Cent. Code § 26.1-40-15.2 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.2
26.1-40-15.2. Uninsured motorist coverage
Status: in_force

26.1-40-15.2. Uninsured motorist coverage

1. No motor vehicle liability insurance policy may be delivered, issued for delivery, or

renewed in this state with respect to any specifically insured or identified motor vehicle

registered, licensed, and principally garaged in this state unless uninsured motorist

coverage is provided therein or supplemental thereto in limits set forth in section
N.D. Cent. Code § 26.1-14-01 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-01
26.1-14-01. Purpose
Status: in_force

26.1-14-01. Purpose

There is a nationwide crisis in the field of medical malpractice insurance and physicians

practicing medicine within the state of North Dakota are finding, or will find, it increasingly

difficult, if not impossible, to obtain medical malpractice insurance. The purpose of this chapter

is to provide for the payment of indemnities to persons suffering injury arising out of the

rendering of or the failure to render professional services by physicians and to provide means

whereby physicians may obtain insurance against liability therefor, subject to the limitations and

immunities provided in this chapter.
N.D. Cent. Code § 26.1-36-09.3 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.3
26.1-36-09.3. Coverage for treatment of certain disorders
Status: in_force

26.1-36-09.3. Coverage for treatment of certain disorders

Except for policies that only provide coverage for specified diseases, no policy or certificate

of health, medical, hospitalization, or accident and sickness insurance regulated under this

chapter, or a subscriber contract provided by a nonprofit health service corporation, preferred

provider organization, or health maintenance organization, may be issued, renewed, continued,

delivered, issued for delivery, or executed in this state after January 1, 1990, unless the policy,

certificate, plan, or contract specifically provides coverage for surgical and nonsurgical

treatment of temporomandibular joint disorder and craniomandibular disorder. Coverage must

be the same as that for treatment to any other joint in the body and applies if the treatment is

administered or prescribed by a physician or a dentist. Benefits for the coverage may be limited

to a lifetime maximum of ten thousand dollars per person for surgery, and two thousand five

hundred dollars for nonsurgical treatment.
N.D. Cent. Code § 26.1-40-03 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-03
26.1-40-03. Notice of cancellation
Status: in_force

26.1-40-03. Notice of cancellation

No insurer may exercise its right to cancel a policy unless a written notice of cancellation is

mailed or delivered to the named insured, at the address shown in the policy, at least twenty

days prior to the effective date of cancellation. When cancellation is for nonpayment of

premium, the notice must be mailed or delivered to the named insured at the address shown in

the policy at least ten days prior to the effective date of cancellation.
N.D. Cent. Code § 26.1-40.1-01 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-01
26.1-40.1-01. Definitions
Status: in_force

26.1-40.1-01. Definitions

As used in this chapter and chapter 39-34, unless the context otherwise requires:

1. "Application off stage" of operation means the time period when the driver is operating

the vehicle for personal noncommercial reasons and not engaged in any manner or

operation for the transportation network company.

2. "Application on stage" means the time period the driver is logged onto the

online-enabled application of a transportation network company and available for hire

but not engaged and there is no passenger on board.

3. "Engaged stage" means the time period from the moment a participating driver

accepts a ride request on the transportation network company's online-enabled

application or platform until the passengers on-board stage begins.

4. "Participating driver" or "driver" means an individual who:

a. Receives connections to potential passengers and related services from a

transportation network company in exchange for payment or a fee to the

transportation network company; and

b. Uses a personal vehicle to offer or provide prearranged transportation services to

a passenger upon connection through an online-enabled application or platform

controlled by a transportation network company in return for compensation or

payment of a fee.

5. "Passengers on-board stage" means the time period when there are passengers in the

vehicle pursuant to the driver's participation in a transportation network company.

6. "Personal injury protection" means basic no-fault benefits as defined under

subsection 2 of section 26.1-41-01.

7. "Transportation network company" means a person operating in this state which uses

an online-enabled application or platform to connect a passenger with an independent

participating driver who provides prearranged transportation services using a personal

vehicle. A transportation network company may not be deemed to control, direct, or

manage the personal vehicles or participating drivers that connect to the transportation

network company's online-enabled application or platform, unless agreed to by written

contract.

8. "Transportation network company insurance" means an insurance policy that covers a

driver's use of a vehicle in connection with a transportation network company's

online-enabled application or platform.
N.D. Cent. Code § 26.1-06.1-13 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-13
26.1-06.1-13. Powers and duties of the rehabilitator
Status: in_force

26.1-06.1-13. Powers and duties of the rehabilitator

1. The commissioner as rehabilitator may appoint one or more special deputies, who

shall have all the powers and responsibilities of the rehabilitator granted under this

section, and the commissioner may employ such counsel, clerks, and assistants as

deemed necessary. The compensation of the special deputy, counsel, clerks, and

assistants and all expenses of taking possession of the insurer and of conducting the

proceedings must be fixed by the commissioner, with the approval of the court and

must be paid out of the funds or assets of the insurer. The commissioner, as

rehabilitator, may, with the approval of the court, appoint an advisory committee of

policyholders, claimants, or other creditors, including guaranty associations, should

such a committee be deemed necessary. The committee shall serve at the pleasure of

the commissioner and shall serve without compensation other than reimbursement for

reasonable travel and per diem living expenses. No other committee of any nature

may be appointed by the commissioner or the court in rehabilitation proceedings

conducted under this chapter.

2. In the event that the property of the insurer does not contain sufficient cash or liquid

assets to defray the costs incurred, the commissioner may advance the costs so

incurred out of any appropriation for the maintenance of the insurance department.

Any amounts so advanced for expenses of administration must be repaid to the

commissioner for the use of the insurance department out of the first available money

of the insurer.

3. The rehabilitator may take such action deemed necessary or appropriate to reform and

revitalize the insurer. The rehabilitator shall have all the powers of the directors,

officers, and managers, whose authority must be suspended, except as they are

redelegated by the rehabilitator. The rehabilitator shall have full power to direct and

manage, to hire, and discharge employees subject to any contract rights they may

have, and to deal with the property and business of the insurer.

4. If it appears to the rehabilitator that there has been criminal or tortious conduct, or

breach of any contractual or fiduciary obligation detrimental to the insurer by any

officer, manager, insurance producer, employee, or other person, the rehabilitator may

pursue all appropriate legal remedies on behalf of the insurer.

5. If it is determined that reorganization, consolidation, conversion, reinsurance, merger,

or other transformation of the insurer is appropriate, the rehabilitator shall prepare a

plan to effect such changes. Upon application of the rehabilitator for approval of the

plan, and after such notice and hearings as the court may prescribe, the court may

either approve or disapprove the plan proposed, or may modify it and approve it as

modified. Any plan approved under this section must be, in the judgment of the court,

fair and equitable to all parties concerned. If the plan is approved, the rehabilitator

shall carry out the plan. In the case of a life insurer, the plan proposed may include the

imposition of liens upon the policies of the company, if all rights of shareholders are

first relinquished. A plan for a life insurer may also propose imposition of a moratorium

upon loan and cash surrender rights under policies, for such period, and to such an

extent as may be necessary.

6. The rehabilitator shall have the power under sections 26.1-06.1-25 and 26.1-06.1-26

to avoid fraudulent transfers.
N.D. Cent. Code § 26.1-15.1-30 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-30
26.1-15.1-30. Injunction - Liquidation - Receivership of domestic society
Status: in_force

26.1-15.1-30. Injunction - Liquidation - Receivership of domestic society

1. The commissioner shall notify the society of the deficiency or deficiencies stating in

writing the reasons for the commissioner's dissatisfaction and requiring that the

deficiency or deficiencies be corrected, if the commissioner upon investigation finds

that a domestic society has committed any of the following acts:

a. Exceeded its powers.

b. Failed to comply with any provision of this chapter.

c. Not fulfilled any of its contracts in good faith.

d. Has a membership of less than four hundred after an existence of one year or

more.

e. Conducted business fraudulently or in a manner hazardous to its members,

creditors, the public, or the business.

After notice the society has a thirty-day period in which to comply with the

commissioner's request for correction. If the society fails to comply, the commissioner

shall notify the society of noncompliance and require the society to show cause on a

date specified why it should not be enjoined from carrying on any business until the

violations complained of have been corrected or why an action in quo warranto should

not be commenced against the society.

2. If the society does not present good and sufficient reasons why it should not be so

enjoined or why an action in quo warranto should not be commenced, the

commissioner may present the facts to the attorney general who may commence an

action to enjoin the society from transacting business or in quo warranto.

3. The attorney general shall thereupon notify the officers of the society of a hearing. If

after a full hearing it appears that the society should be so enjoined or liquidated or a

receiver appointed, the court shall enter the necessary order. No society so enjoined

may do business until:

a. The commissioner finds that the violation complained of has been corrected;

b. The costs of the action have been paid by the society if the court finds that the

society was in default as charged;

c. The court has dissolved its injunction; and

d. The commissioner has reinstated the certificate of authority.

4. If the court orders the society liquidated, it must be enjoined from carrying on any

further business, whereupon the receiver of the society shall proceed at once to take

possession of the books, papers, money, and other assets of the society and, under

the direction of the court, proceed forthwith to close the affairs of the society and to

distribute its funds to those entitled thereto.

5. No action under this section may be recognized in any court of this state unless

brought by the attorney general upon request of the commissioner. Whenever a

receiver is to be appointed for a domestic society, the court shall appoint the

commissioner or the commissioner's designee as receiver.

6. The provisions of this section relating to hearing by the commissioner, action by the

attorney general at the request of the commissioner, hearing by the court, injunction,

and receivership are applicable to a society that voluntarily determines to discontinue

business.
N.D. Cent. Code § 26.1-45-07 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-07
26.1-45-07. Prior institutionalization requirement prohibited
Status: in_force

26.1-45-07. Prior institutionalization requirement prohibited

1. No long-term care insurance policy or certificate may be delivered or issued for

delivery in this state if such policy:

a. Conditions eligibility for any benefits on a prior hospitalization requirement.

b. Conditions eligibility for benefits provided in an institutional care setting on the

receipt of a higher level of such institutional care.

c. Conditions eligibility for any benefits other than waiver of premium,

postconfinement, postacute care, or recuperative benefits on a prior

institutionalization requirement.

2. a. A long-term care insurance policy containing postconfinement, postacute care, or

recuperative benefits must clearly label in a separate paragraph of the policy or

certificate entitled "limitations or conditions on eligibility for benefits" such

limitations or conditions, including any required number of days of confinement.

b. A long-term care insurance policy or rider which conditions eligibility of

noninstitutional benefits on the prior receipt of institutional care may not require a

prior institutional stay of more than thirty days.

3. No long-term care insurance policy or rider which provides benefits only following

institutionalization may condition such benefits upon admission to a facility for the

same or related conditions within a period of less than thirty days after discharge from

the institution.
N.D. Cent. Code § 26.1-36-17 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-17
26.1-36-17. Application for accident and health policy
Status: in_force

26.1-36-17. Application for accident and health policy

1. The insured is not bound by any statement made in an application for an accident and

health insurance policy unless a copy of the application is attached to or endorsed on

the policy. If any policy delivered or issued for delivery to any person in this state is to

be reinstated or renewed, and the insured or the beneficiary or assignee of the policy

makes written request to the insurer for a copy of the application, if any, for

reinstatement or renewal, the insurer, within fifteen days after the receipt of the request

at its home office or any branch office of the insurer, shall deliver or mail to the person

making the request a copy of the application. If the copy is not delivered or mailed, the

insurer is precluded from introducing the application as evidence in any action or

proceeding based upon or involving the policy or its reinstatement or renewal.

2. No alteration of any written application for an accident and health insurance policy may

be made by any person other than the applicant without the applicant's written

consent, except that insertions may be made by the insurer, for administrative

purposes only, in such manner as to indicate clearly that the insertions are not to be

ascribed to the applicant.

3. The falsity of any statement in the application for an accident and health insurance

policy may not bar the right to recovery under the policy unless the false statement

materially affected either the acceptance of the risk or the hazard assumed by the

insurer.
N.D. Cent. Code § 26.1-37-13 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-13
26.1-37-13. Claims
Status: in_force

26.1-37-13. Claims

1. All claims must be promptly reported to the insurer or its designated claim

representative, and the insurer shall maintain adequate claim files. All claims must be

settled as soon as possible and in accordance with the terms of the insurance

contract.

2. All claims must be paid either by draft drawn upon the insurer or by check of the

insurer to the order of the claimant to whom payment of the claim is due pursuant to

the policy provisions, or upon direction of the claimant to one specified.

3. No plan or arrangement may be used by which any person, firm, or corporation other

than the insurer or its designated claim representative is authorized to settle or adjust

claims. The creditor may not be designated as claim representative for the insurer in

adjusting claims; provided, that a group policyholder may, by arrangement with the

group insurer, draw drafts, checks, or electronic transfers in payment of claims due to

the group policyholder subject to audit and review by the insurer.
N.D. Cent. Code § 26.1-22-06 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-06
26.1-22-06. Commissioner to adopt guidelines on insurable values
Status: repealed

26.1-22-06. Commissioner to adopt guidelines on insurable values

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-26-01 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-01
26.1-26-01. Scope
Status: in_force

26.1-26-01. Scope

This chapter governs the qualifications and procedures for the licensing of insurance

producers, insurance consultants, and surplus lines insurance producers. This chapter applies

to all lines of insurance and types of insurers, including prepaid legal services organizations and

health maintenance organizations.
N.D. Cent. Code § 26.1-06.1-25 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-25
26.1-06.1-25. Fraudulent transfers prior to petition
Status: in_force

26.1-06.1-25. Fraudulent transfers prior to petition

1. Every transfer made or suffered and every obligation incurred by an insurer within one

year prior to the filing of a successful petition for rehabilitation or liquidation under this

chapter is fraudulent as to then existing and future creditors if made or incurred without

fair consideration, or with actual intent to hinder, delay, or defraud either existing or

future creditors. A transfer made or an obligation incurred by an insurer ordered to be

rehabilitated or liquidated under this chapter, which is fraudulent under this section,

may be avoided by the receiver, except as to a person who in good faith is a

purchaser, lienor, or obligee for a present fair equivalent value, and except that any

purchaser, lienor, or obligee, who in good faith has given a consideration less than fair

for such transfer, lien, or obligation, may retain the property, lien, or obligation as

security for repayment. The court may, on due notice, order any such transfer or

obligation to be preserved for the benefit of the estate, and in that event, the receiver

shall succeed to and may enforce the rights of the purchaser, lienor, or obligee.

2. a. A transfer of property other than real property must be deemed to be made or

suffered when it becomes so far perfected that no subsequent lien obtainable by

legal or equitable proceedings on a simple contract could become superior to the

rights of the transferee under subsection 3 of section 26.1-06.1-27.

b. A transfer of real property must be deemed to be made or suffered when it

becomes so far perfected that no subsequent bona fide purchaser from the

insurer could obtain rights superior to the rights of the transferee.

c. A transfer which creates an equitable lien may not be deemed to be perfected if

there are available means by which a legal lien could be created.

d. Any transfer not perfected prior to the filing of a petition for liquidation must be

deemed to be made immediately before the filing of the successful petition.

e. The provisions of this subsection apply whether or not there are or were creditors

who might have obtained any liens or persons who might have become bona fide

purchasers.

3. Any transaction of the insurer with a reinsurer must be deemed fraudulent and may be

avoided by the receiver under subsection 1 if:

a. The transaction consists of the termination, adjustment, or settlement of a

reinsurance contract in which the reinsurer is released from any part of its duty to

pay the originally specified share of losses that had occurred prior to the time of

the transactions, unless the reinsurer gives a present fair equivalent value for the

release; and

b. Any part of the transaction took place within one year prior to the date of filing of

the petition through which the receivership was commenced.

4. Every person receiving any property from the insurer or any benefit thereof which is a

fraudulent transfer under subsection 1 is personally liable therefor and is bound to

account to the liquidator.
N.D. Cent. Code § 26.1-01-03 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-03
26.1-01-03. Duties of commissioner
Status: in_force

26.1-01-03. Duties of commissioner

The commissioner shall:

1. See that all the laws of this state respecting insurance companies and benevolent

societies are executed faithfully.

2. Report in detail to the attorney general any violation of law relative to insurance

companies and their officers or agents.

3. File the articles of incorporation of all insurance companies organized or doing

business in this state, and on application furnish a certified copy thereof.

4. Furnish the insurance companies required to make reports to the commissioner and

the benevolent societies the necessary blank forms for required statements and

reports. The commissioner is not required to send blank forms to those insurance

companies which submit their reports on printed forms conforming to those furnished

by the commissioner.

5. Preserve in permanent form a full record of the commissioner's proceedings and a

concise statement of each company or agency visited or examined.

6. Furnish at the request of any person, upon the payment of the required fee, certified

copies of any record or paper in the commissioner's office, if the commissioner deems

it not prejudicial to the public interests to do so, and give such other certificates as may

be provided by law.

7. Submit a biennial report as prescribed by section 54-06-04 to the governor and the

secretary of state. In addition to the requirements of section 54-06-04, the report must

contain an abstract only of the reports of the various insurance companies doing

business in this state showing the condition of the companies.

8. Upon request, send a copy of the commissioner's annual report to the insurance

commissioner, or other similar officer, of every other state and to each company doing

business in this state.

9. Communicate, on request, to the insurance commissioner of any other state any facts

that by law it is the commissioner's duty to ascertain respecting companies of this state

doing business within that state.

10. Manage, control, and supervise the state fire marshal.
N.D. Cent. Code § 26.1-26-31.7 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.7
26.1-26-31.7. Credit for out-of-state courses
Status: in_force

26.1-26-31.7. Credit for out-of-state courses

The commissioner may approve credit earned at any seminar, course, or program offered

for prelicensure or continuing education in another state.
N.D. Cent. Code § 26.1-36-46 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-46
26.1-36-46. External review procedures
Status: repealed

26.1-36-46. External review procedures

1. As used in this section, unless the context otherwise requires:

a. "Adverse benefit determination" means a denial of, reduction of, termination of, or

a failure to provide or make payment for a claim for benefits which involves

medical judgment and involves the cancellation or discontinuation of coverage

that has retroactive effect. The term includes a determination based on the

requirements of an insurance company, nonprofit health services corporation, or

health maintenance organization for medical necessity, appropriateness, health

care setting, level of care, or effectiveness of a covered benefit and a

determination that a treatment is experimental or investigational. The term does

not include a denial of, reduction of, termination of, or failure to provide or make

payment related to a claimant's eligibility for benefits under the terms of

coverage.

b. "Claim for benefits" means a request for one or more benefits which is made by a

claimant in accordance with the reasonable procedure for submitting benefit

claims offered by an insurance company, nonprofit health services corporation, or

health maintenance organization. A reasonable procedure includes an external

review procedure that complies with this section.

c. "Claimant" means an individual who makes a claim for benefits under this

section.

d. "Expedited external review" means an adverse benefit determination that

involves:

(1) An admission, availability of care, a continued stay, or a health care service

for which the claimant received emergency services but has not been

discharged from the facility; or

(2) A medical condition for which the standard external review timeframes

would seriously jeopardize the life or health of the claimant or jeopardize the

claimant's ability to regain maximum function.

e. "External review" is a review of an adverse benefit determination conducted

pursuant to this section.

f. "Final external review determination" means a determination by an independent

review organization at the conclusion of an external review.

g. "Independent review organization" means an entity that conducts independent

external reviews of adverse benefit determinations.

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

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

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

franchise, or association basis unless the policy, contract, or evidence of coverage

meets the minimum requirements of 42 U.S.C. 300gg-19 and complies with 29 U.S.C.

1133, 29 CFR 2560.503-1; 42 U.S.C. 300gg-19, 26 CFR 54.9815-2719T; 29 U.S.C.

1185d, 29 CFR 2590.715-2719; and 26 U.S.C. 9815, 45 CFR 147.136. The insurance

commissioner shall adopt rules as necessary to ensure compliance with this section

and the federal minimum consumer protection standards. If federal laws or rules

relating to external review are amended, repealed, or otherwise changed, the

insurance commissioner shall adopt rules that track such changes to the federal

external review rules to ensure the external review procedure set forth in this section is

substantively equivalent and parallel to the federal requirements. An external review

procedure must meet the requirement set forth in this section.

3. An external review process offered by an insurance company, nonprofit health services

corporation, or health maintenance organization pursuant to this section must include

each of the following:

a. An external review must be available to a claimant for:

(1) An adverse benefit determination involving medical necessity,

appropriateness, health care setting, level of care, or effectiveness of a

covered benefit;

(2) A determination that a treatment is experimental or investigational if it is

ensured that adequate clinical and scientific protocols are taken into account

as part of the external review for determinations involving experimental or

investigative claims for benefits; and

(3) An adverse benefit determination involving the cancellation or

discontinuation of coverage that has a retroactive effect. For purposes of

this paragraph, an adverse benefit determination does not include a denial,

a reduction, a termination, or a failure to provide or make payment related to

a claimant's eligibility for benefits under the terms of coverage.

b. An effective written notice must be provided to each claimant of the claimant's

rights related to external review of an adverse benefit determination.

c. The insurance company, nonprofit health services corporation, or health

maintenance organization may require a claimant to exhaust the internal claims

and appeals process; however, a claimant may not be required to exhaust all

internal and external claims and appeals processes if the insurance company,

nonprofit health services corporation, or health maintenance organization waives

this requirement, the claimant is considered to have exhausted the internal claims

and appeals process under applicable law, or the claimant has filed for expedited

external review. A claimant may file for an expedited external review without fully

exhausting all internal claims and appeals requirements at the same time any

internal appeal is being processed and the claimant meets the defined criteria for

requesting an expedited external review.

d. The insurance company, nonprofit health services corporation, or health

maintenance organization against which a request for external review is

submitted shall pay the cost of the independent review organization for

completing the external review. An insurance company, nonprofit health services

corporation, or health maintenance organization may require the claimant to pay

a nominal filing fee from the claimant requesting an external review under this

section. This fee may not exceed twenty-five dollars and must be refunded to the

claimant if the adverse benefit determination is reversed by the independent

review organization. A fee must be waived if payment imposes an undue hardship

on the claimant. The fees charged by an insurance company, nonprofit health

services corporation, or health maintenance organization to a claimant in any

single plan year may not exceed seventy-five dollars.

e. A minimum dollar requirement may not be imposed for a claim for benefits to

qualify for external review.

f. A claimant must have up to four months after receipt of notice of an adverse

benefit determination to request external review.

g. A requirement that the commissioner assign external review to independent

review organizations on a random basis or other method of assignment that

assures the independence and impartiality of the assignment process, such as

rotational assignment. The commissioner's process must provide for the

maintenance of a list of at least three independent review organizations that are

accredited by a nationally recognized private accrediting organization and are

qualified to conduct the external review based on the nature of the health care

service that is the subject of the review.

The commissioner may not use an independent review organization that

has a conflict of interest that influences its independence. The independent

review organization may not own or control, or be owned or controlled by, an

insurance company, a nonprofit health services corporation, a health

maintenance organization, a group health plan, the sponsor of a group health

plan, a trade association of plans or insurance companies, or a trade association

of health care providers. The independent review organization and clinical

reviewer assigned to conduct an external review may not have a material

professional, familial, or financial conflict of interest with the insurance company,

nonprofit health services corporation, or health maintenance organization or plan

that is the subject of the external review; with the claimant whose treatment is the

subject of the external review; with any officer, director, or management employee

of the insurance company, nonprofit health services corporation, or health

maintenance organization; with employees, administrator, or sponsor of the

claimant's health plan; with the health care provider or with the health care

provider's group or practice association recommending the treatment that is

subject to the external review; with the facility at which the recommended

treatment would be provided; or with the developer or manufacturer of the

principal drug, device, procedure, or other therapy being recommended and that

is the subject of the external review.

h. The claimant must be notified that the claimant is allowed up to five business

days to submit additional written information to the independent review

organization and that this information must be considered by the independent

review organization when completing the external review. Any additional

information submitted by a claimant to an independent review organization for

consideration in any external review must also be forwarded to the insurance

company, nonprofit health services corporation, or health maintenance

organization within one business day of receipt by the independent review

organization.

i. Any decision by an independent review organization through the external review

process is binding on the claimant and on the insurance company, nonprofit

health services corporation, or health maintenance organization, except to the

extent other remedies are available under state or federal law and except that the

requirement that the determination be binding does not preclude the insurance

company, nonprofit health services corporation, or health maintenance

organization from making payment on the claim for benefits or from failing to

require such payment or benefits. The insurance company, nonprofit health

services corporation, or health maintenance organization shall provide benefits,

including making payment, pursuant to the final external review decision without

delay, regardless of whether the insurance company, nonprofit health services

corporation, or health maintenance organization intends to seek judicial review of

the external review decision and unless or until there is a judicial decision

otherwise.

j. Within forty-five days of the independent review organization's receipt of the

request for external review, the independent review organization shall provide

written notice to the commissioner, the claimant, and the insurance company,

nonprofit health services corporation, or health maintenance organization of the

independent review organization's decision to uphold or reverse the adverse

benefit determination. In regard to a request for an expedited external review,

within seventy-two hours of the independent review organization's receipt of a

request for expedited review, the independent review organization shall make a

decision to uphold or reverse the adverse benefit determination and notify the

commissioner, the claimant, and the insurance company, nonprofit health

services corporation, or health maintenance organization of the determination. If

the notice by the independent review organization is not in writing, the

independent review organization shall provide written confirmation of the decision

within forty-eight hours after the date of the notice of the decision.

k. An insurance company, nonprofit health services corporation, or health

maintenance organization shall include a description of the external review

process in or attached to the policy, certificate of coverage, or other plan

documents or evidence of coverage provided to covered individuals.

l. The contract with an independent review organization to provide external review

services must require the independent review organization to maintain written

records and to make those records specifically involving an external review

available to the commissioner.

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

organization provides an effective and relevant notice in a culturally and linguistically

appropriate manner with respect to any applicable non-English language if the

insurance company, nonprofit health services corporation, or health maintenance

organization provides, upon request, a notice in any applicable non-English language

and a statement prominently displayed in any applicable non-English language clearly

indicating how to access the language services provided by the insurance company,

nonprofit health services corporation, or health maintenance organization. With

respect to an address in any United States county to which such notice is sent, an

applicable non-English language means that at least ten percent of the population

residing in the county is literate only in the same non-English language as determined

in guidance issued under federal law.
N.D. Cent. Code § 26.1-53.1-01 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-01
26.1-53.1-01. Definitions
Status: in_force

26.1-53.1-01. Definitions

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

1. "Affiliate" means a person that directly, or indirectly through one or more

intermediaries, controls, or is controlled by, or is under common control with, the

person specified.

2. "Ancillary services" includes audiology, dental, vision, mental health, substance abuse,

chiropractic, and podiatry services.

3. "Control", "controlled by", or "under control with" means the possession, direct or

indirect, of the power to direct or cause the direction of the management and policies

of a person, whether through the ownership of voting securities, by contract other than

a commercial contract for goods or nonmanagement services, or otherwise, unless the

power is the result of an official position with or corporate office held by the person.

Control is presumed to exist if any person, directly or indirectly, owns, controls, holds

with the power to vote, or holds proxies representing ten percent or more of the voting

securities of any other person. This presumption may be rebutted by a showing made

in the manner provided by section 26.1-10-04, that control does not exist in fact. The

commissioner may determine, after furnishing all persons in interest notice and

opportunity to be heard and making specific findings of fact to support such

determination, that control exists in fact, notwithstanding the absence of a presumption

to that effect.

4. "Direct primary care" means any private contract between a provider and consumer for

services associated with that provider.

5. "Discount plan" means a business arrangement or contract in which a person, in

exchange for fees, dues, charges, or other consideration, offers members the access

to providers of medical or ancillary services and the right to receive discounts on

medical or ancillary services provided under the discount plan from those providers.

The term includes a discount prescription drug plan. The term does not include:

a. A plan that does not charge a membership, payment, dues, other consideration,

or other fee to use the discount plan;

b. Any product otherwise regulated under title 26.1;

c. Direct primary care;

d. A patient access program; or

e. A Medicare prescription drug plan.

6. "Discount plan organization" means an entity that, in exchange for fees, dues,

charges, or other consideration, provides access for discount plan members to

providers of medical or ancillary services and the right to receive medical or specialty

services from those providers at a discount. It is the organization that contracts with

providers, provider networks, or other discount plan organizations to offer access to

medical or specialty services at a discount and determines the charge to discount plan

members.

7. "Discount prescription drug plan" means a business arrangement or contract in which

a person, in exchange for fees, dues, charges, or other consideration, provides

members the access to providers of pharmacy services and the right to receive

discounts on pharmacy services provided under the discount prescription drug plan

from those providers.

8. "Facility" means an institution providing medical or ancillary services or a health care

setting. The term includes:

a. A hospital or other licensed inpatient center;

b. An ambulatory surgical or treatment center;

c. A skilled nursing center;

d. A residential treatment center;

e. A rehabilitation center; and

f. A diagnostic, laboratory, or imaging center.

9. "Health care professional" means a physician, pharmacist, or other health care

practitioner who is licensed, accredited, or certified to perform specified medical or

ancillary services within the scope of the professional's license, accreditation,

certification, or other appropriate authority consistent with state law.

10. "Health insurer" means an entity subject to the insurance laws and regulations of this

state, or subject to the jurisdiction of the commissioner, that contracts or offers to

contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health

care services, including a sickness and accident insurance company, a health

maintenance organization, a nonprofit hospital and health service corporation, or any

other entity providing a plan of health insurance, health benefits, or medical or ancillary

services.

11. "Marketer" means a person that markets, promotes, sells, or distributes a discount

plan, including a private label entity that places the entity's name on and markets or

distributes a discount plan pursuant to a marketing agreement with a discount plan

organization.

12. "Medical services" means any maintenance care of, or preventive care for, the human

body, or care, service, or treatment of an illness or dysfunction of, or injury to, the

human body. The term includes physician care, inpatient care, hospital surgical

services, emergency services, ambulance services, dental care services, vision care

services, mental health services, substance abuse services, chiropractic services,

podiatric services, laboratory services, medical equipment and supplies, pharmacy

services, and ancillary services.

13. "Medicare prescription drug plan" means a plan that provides Medicare part D

prescription drug benefits in accordance with the requirements of the federal Medicare

Prescription Drug, Improvement, and Modernization Act of 2003 [Pub. L. 108-173].

14. "Member" means any individual who pays fees, dues, charges, or other consideration

for the right to receive the benefits of a discount plan or discount prescription drug

plan.

15. "Patient access program" means a voluntary program sponsored by a pharmaceutical

manufacturer, or a consortium of pharmaceutical manufacturers, which provide free or

discounted health care products directly to low-income or uninsured individuals either

through a discount card or direct shipment.

16. "Person" means an individual, a corporation, a partnership, an association, a joint

venture, a joint stock company, a trust, an unincorporated organization, any similar

entity, or any combination of the foregoing.

17. "Pharmacy services" includes pharmaceutical supplies and prescription drugs.

18. "Provider" means any health care professional or facility that has contracted, directly

or indirectly, with a discount plan organization to provide medical or ancillary services

to members.

19. "Provider network" means an entity that negotiates, directly or indirectly, with a

discount plan organization on behalf of more than one provider to provide medical or

ancillary services to members.
N.D. Cent. Code § 26.1-30-07 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-07
26.1-30-07. Joint or common interest must be shown in policy
Status: in_force

26.1-30-07. Joint or common interest must be shown in policy

When an insurance policy is entered into by a part owner of an interest, the terms of the

insurance policy must be applicable to joint or common interest for the policy to be effective as

to the interests of other part owners.
N.D. Cent. Code § 26.1-40.1-02 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-02
26.1-40.1-02. Required disclosures
Status: in_force

26.1-40.1-02. Required disclosures

1. A transportation network company shall disclose in writing or electronic form to

participating drivers, as part of its agreement with those drivers, the insurance

coverage and limits of liability that the transportation network company provides while

the driver uses a vehicle in connection with a transportation network company's online-

enabled application or platform and shall advise a participating driver that the driver's

personal automobile insurance policy may not provide coverage under the agreement.

2. A transportation network company shall disclose in writing or electronic form to

participating drivers, as part of its agreement with those drivers, of when the driver's

personal automobile insurance policy may not provide collision or comprehensive

coverage, under the agreement.

3. A transportation network company shall provide notice in writing or electronically to the

driver instructing the driver to notify the driver's personal automobile insurer of the

driver's participation in the transportation network.
N.D. Cent. Code § 26.1-02-13 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-13
26.1-02-13. Enforcement of decisions or orders
Status: in_force

26.1-02-13. Enforcement of decisions or orders

The attorney general upon request of the commissioner may proceed in the court of this

state or any reciprocal state to enforce an order or decision in any court proceeding or in any

administrative proceeding before the commissioner.
N.D. Cent. Code § 26.1-07-09 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-09
26.1-07-09. Grounds upon which commissioner may petition for dissolution of company - Representation by attorney general
Status: repealed

26.1-07-09. Grounds upon which commissioner may petition for dissolution of

company - Representation by attorney general.

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-17.1-19 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-19
26.1-17.1-19. Reports
Status: in_force

26.1-17.1-19. Reports

1. Every prepaid limited health service organization shall file with the commissioner

annually, on or before March first, a report verified by at least two principal officers

covering the preceding calendar year.

2. Such report must be on forms prescribed by the commissioner and must include:

a. A financial statement of the organization, including its balance sheet, income

statement, and statement of changes in financial position for the preceding year,

certified by an independent public accountant or a consolidated audited financial

statement of its parent company certified by an independent public accountant,

attached to which must be consolidating financial statements of the prepaid

limited health service organization.

b. The number of subscribers at the beginning of the year, the number of

subscribers as of the end of the year, and the number of enrollments terminated

during the year.

c. Such other information relating to the performance of the organization as is

necessary to enable the commissioner to carry out the duties under this chapter.

3. The commissioner may require more frequent reports containing such information as

is necessary to enable the commissioner to carry out the duties under this chapter.

4. The commissioner may assess a fine of up to one hundred dollars per day for each

day any required report is late, and the commissioner may suspend the organization's

certificate of authority pending the proper filing of the required report by the

organization.
N.D. Cent. Code § 26.1-22-05 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-05
26.1-22-05. Public, international peace garden, and winter show buildings insurable in fund
Status: repealed

26.1-22-05. Public, international peace garden, and winter show buildings insurable in

fund.

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-10.2-04 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-04
26.1-10.2-04. Own risk and solvency assessment summary report
Status: in_force

26.1-10.2-04. Own risk and solvency assessment summary report

1. Upon the commissioner's request, and no more than once each year, an insurer shall

submit to the commissioner an own risk and solvency assessment summary report or

any combination of reports that together contain the information described in the own

risk and solvency assessment guidance manual, applicable to the insurer or the

insurance group of which it is a member. Notwithstanding any request from the

commissioner, if the insurer is a member of an insurance group, the insurer shall

submit the reports required by this subsection if the commissioner is the lead state

commissioner of the insurance group as determined by the procedures within the

financial analysis handbook adopted by the national association of insurance

commissioners.

2. The report must include a signature of the insurer or insurance group's chief risk officer

or other executive having responsibility for the oversight of the insurer's enterprise risk

management process attesting to the best of the individual's belief and knowledge that

the insurer applies the enterprise risk management process described in the own risk

and solvency assessment summary report and that a copy of the report has been

provided to the insurer's board of directors or the appropriate committee of the board.

3. An insurer may comply with subsection 1 by providing the most recent and

substantially similar report provided by the insurer or another member of an insurance

group of which the insurer is a member to the commissioner of another state or to a

supervisor or regulator of a foreign jurisdiction, if that report provides information that

is comparable to the information described in the own risk and solvency assessment

guidance manual. Any report in a language other than English must be accompanied

by a translation of that report into the English language.
N.D. Cent. Code § 26.1-34-06 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-06
26.1-34-06. Definition of maturity date
Status: in_force

26.1-34-06. Definition of maturity date

For the purpose of determining the benefits calculated under sections 26.1-34-04 and

26.1-34-05, in the case of annuity contracts under which an election may be made to have

annuity payments commence at optional maturity dates, the maturity date is deemed to be the

latest date for which election is permitted by the contract, but may not be deemed to be later

than the anniversary of the contract next following the annuitant's seventieth birthday or the

tenth anniversary of the contract, whichever is later.
N.D. Cent. Code § 26.1-26.8-09 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-09
26.1-26.8-09. License - Renewal - Reinstatement
Status: in_force

26.1-26.8-09. License - Renewal - Reinstatement

1. The commissioner shall issue a resident public adjuster license or nonresident public

adjuster license to an individual who meets the necessary requirements of this

chapter.

a. A resident public adjuster license and a nonresident public adjuster license expire

on the last day of the month of the licensed public adjuster's birthday following

the two-year anniversary of issuance of a license by the commissioner.

b. To renew a license, a licensed resident public adjuster and a licensed nonresident

public adjuster shall file a biennial license continuation in the form and manner

prescribed by the commissioner and pay a fee as prescribed in section