N.D. Cent. Code § 26.1-31.2-01 — ND Code / Title 26.1 / Chapter 26.1-31.2 / Section 26.1-31.2-01
26.1-31.2-01. Credit allowed a domestic ceding insurer
Status: in_force

26.1-31.2-01. Credit allowed a domestic ceding insurer

1. Credit for reinsurance must be allowed a domestic ceding insurer as either an asset or

a reduction from liability on account of reinsurance ceded only when the reinsurer

meets the requirements of subsection 2, 3, 4, 5, 6, 7, or 8. Credit will be allowed under

subsection 2, 3, or 4 only with respect to cessions of a kind or class of business that

the assuming insurer is licensed or otherwise permitted to write or assume in its state

of domicile or, in the case of a United States branch of an alien assuming insurer, in

the state through which it is entered and licensed to transact insurance or reinsurance.

Credit must be allowed under subsection 4 or 5 only if the applicable requirements of

subsection 9 have been satisfied.

2. Credit must be allowed when the reinsurance is ceded to an assuming insurer that is

licensed to transact insurance or reinsurance in this state.

3. Credit must be allowed when the reinsurance is ceded to an assuming insurer which is

accredited by the commissioner as a reinsurer in this state. In order to be eligible for

accreditation, a reinsurer:

a. Shall file with the commissioner evidence of its submission to this state's

jurisdiction;

b. Shall submit to this state's authority to examine its books and records;

c. Must be licensed to transact insurance or reinsurance in at least one state, or, in

the case of a United States branch of an alien assuming insurer, be entered

through and licensed to transact insurance or reinsurance in at least one state;

d. Annually, shall file with the commissioner a copy of its annual statement filed with

the insurance department of its state of domicile and a copy of its most recent

audited financial statement; and

e. Shall demonstrate to the satisfaction of the commissioner the assuming insurer

has adequate financial capacity to meet the assuming insurer's reinsurance

obligations and is otherwise qualified to assume reinsurance from domestic

insurers. An assuming insurer is deemed to meet this requirement as of the time

of application the assuming insurer maintains a surplus as regards policyholders

in an amount which is not less than twenty million dollars and the assuming

insurer's accreditation has not been denied by the commissioner within ninety

days after submission of its application.

4. a. Credit must be allowed when the reinsurance is ceded to an assuming insurer

domiciled in, or in the case of a United States branch of an alien assuming

insurer, is entered through, a state which employs standards regarding credit for

reinsurance substantially similar to those applicable under this statute and the

assuming insurer or United States branch of an alien assuming insurer:

(1) Maintains a surplus as regards policyholders in an amount not less than

twenty million dollars; and

(2) Submits to the authority of this state to examine its books and records.

b. The requirement of subdivision a does not apply to reinsurance ceded and

assumed pursuant to pooling arrangements among insurers in the same holding

company system.

5. a. Credit must be allowed when the reinsurance is ceded to an assuming insurer

that maintains a trust fund in a qualified United States financial institution, as

defined in subsection 2 of section 26.1-31.2-03, for the payment of valid claims of

its United States ceding insurers, their assigns, and successors in interest. To

enable the commissioner to determine the sufficiency of the trust fund, the

assuming insurer shall report annually to the commissioner information

substantially the same as that required to be reported on the national association

of insurance commissioners annual statement form by licensed insurers. The

assuming insurer shall submit to examination of the insurer's books and records

by the commissioner and bear the expense of examination.

b. (1) Credit for reinsurance may not be granted under this subsection unless the

form of the trust and any amendments to the trust have been approved by:

(a) The commissioner of the state in which the trust is domiciled; or

(b) The commissioner of another state who, pursuant to the terms of the

trust instrument, accepted principal regulatory oversight of the trust.

(2) The form of the trust and any trust amendments also must be filed with the

commissioner of every state in which the ceding insurer beneficiaries of the

trust are domiciled. The trust instrument must provide that contested claims

are valid and enforceable upon the final order of any court of competent

jurisdiction in the United States. The trust must vest legal title to the trust's

assets in the trust's trustees for the benefit of the assuming insurer's United

States ceding insurers, their assigns, and successors in interest. The trust

and the assuming insurer are subject to examination as determined by the

commissioner.

(3) The trust shall remain in effect for as long as the assuming insurer has

outstanding obligations due under the reinsurance agreements subject to

the trust. No later than February twenty-eighth of each year the trustee of

the trust shall report to the commissioner in writing the balance of the trust

and listing of the trust's investments at the preceding year-end and shall

certify the date of termination of the trust, if so planned, or certify the trust

will not expire before the following December thirty-first.

c. The following requirements apply to the following categories of assuming insurer:

(1) The trust fund for a single assuming insurer must consist of funds in trust in

an amount not less than the assuming insurer's liabilities attributable to

reinsurance ceded by United States ceding insurers and, in addition, the

assuming insurer shall maintain a trusteed surplus of not less than twenty

million dollars, except as provided in paragraph 2.

(2) At any time after the assuming insurer has permanently discontinued

underwriting new business secured by the trust for at least three full years,

the commissioner with principal regulatory oversight of the trust may

authorize a reduction in the required trusteed surplus, but only after a

finding, based on an assessment of the risk, that the new required surplus

level is adequate for the protection of United States ceding insurers,

policyholders, and claimants in light of reasonably foreseeable adverse loss

development. The risk assessment may involve an actuarial review,

including an independent analysis of reserves and cash flows, and must

consider all material risk factors, including when applicable the lines of

business involved, the stability of the incurred loss estimates, and the effect

of the surplus requirements on the assuming insurer's liquidity or solvency.

The minimum required trusteed surplus may not be reduced to an amount

less than thirty percent of the assuming insurer's liabilities attributable to

reinsurance ceded by United States ceding insurers covered by the trust.

(3) (a) In the case of a group, including incorporated and individual

unincorporated underwriters:

[1] For reinsurance ceded under a reinsurance agreement with an

inception, amendment, or renewal date after December 31, 1992,

the trust must consist of a trusteed account in an amount not less

than the respective underwriters' several liabilities attributable to

business ceded by United States domiciled ceding insurers to

any underwriter of the group;

[2] For reinsurance ceded under a reinsurance agreement with an

inception date before January 1, 1993, and not amended or

renewed after that date, notwithstanding the other provisions of

this chapter, the trust must consist of a trusteed account in an

amount not less than the respective underwriters' several

insurance and reinsurance liabilities attributable to business

written in the United States; and

[3] In addition to these trusts, the group shall maintain a trusteed

surplus of one hundred million dollars which must be held jointly

for the benefit of the United States domiciled ceding insurers of

any member of the group for all years of account.

(b) The incorporated members of the group may not be engaged in any

business other than underwriting as a member of the group and are

subject to the same level of regulation and solvency control by the

group's domiciliary regulator as are the unincorporated members.

(c) Within ninety days after its financial statements are due to be filed with

the group's domiciliary regulator, the group shall provide to the

commissioner an annual certification by the group's domiciliary

regulator of the solvency of each underwriter member; or if a

certification is unavailable, financial statements prepared by

independent public accountants of each underwriter member of the

group.

(4) In the case of a group of incorporated underwriters under common

administration, the group:

(a) Must have continuously transacted an insurance business outside the

United States for at least three years immediately prior to making

application for accreditation;

(b) Shall maintain aggregate policyholders' surplus of at least ten billion

dollars;

(c) Shall maintain a trust fund in an amount not less than the group's

several liabilities attributable to business ceded by United States

domiciled ceding insurers to any member of the group pursuant to

reinsurance contracts issued in the name of the group;

(d) Shall maintain a joint trusteed surplus of which one hundred million

dollars must be held jointly for the benefit of United States domiciled

ceding insurers of any member of the group as additional security for

these liabilities; and

(e) Within ninety days after its financial statements are due to be filed with

the group's domiciliary regulator, shall make available to the

commissioner an annual certification of each underwriter member's

solvency by the member's domiciliary regulator and financial

statements of each underwriter member of the group prepared by its

independent public accountant.

6. Credit must be allowed when the reinsurance is ceded to an assuming insurer that has

been certified by the commissioner as a reinsurer in this state and secures the

assuming insurer's obligations in accordance with the requirements of this subsection.

a. In order to be eligible for certification, the assuming insurer shall meet the

following requirements:

(1) The assuming insurer must be domiciled and licensed to transact insurance

or reinsurance in a qualified jurisdiction, as determined by the commissioner

pursuant to subdivision c;

(2) The assuming insurer shall maintain minimum capital and surplus, or its

equivalent, in an amount to be determined by the commissioner pursuant to

rule;

(3) The assuming insurer shall maintain financial strength ratings from two or

more rating agencies deemed acceptable by the commissioner pursuant to

rule;

(4) The assuming insurer shall agree to submit to the jurisdiction of this state,

appoint the commissioner as its agent for service of process in this state,

and agree to provide security for one hundred percent of the assuming

insurer's liabilities attributable to reinsurance ceded by United States ceding

insurers if the assuming insurer resists enforcement of a final United States

judgment;

(5) The assuming insurer shall agree to meet applicable information filing

requirements as determined by the commissioner, both with respect to an

initial application for certification and on an ongoing basis; and

(6) The assuming insurer shall satisfy any other requirements for certification

deemed relevant by the commissioner.

b. An association, including incorporated and individual unincorporated

underwriters, may be a certified reinsurer. In order to be eligible for certification, in

addition to satisfying requirements of subdivision a:

(1) The association shall satisfy its minimum capital and surplus requirements

through the capital and surplus equivalents, net of liabilities, of the

association and the association's members which must include a joint

central fund that may be applied to any unsatisfied obligation of the

association or any of the association's members, in an amount determined

by the commissioner to provide adequate protection;

(2) The incorporated members of the association may not be engaged in any

business other than underwriting as a member of the association and are

subject to the same level of regulation and solvency control by the

association's domiciliary regulator as are the unincorporated members; and

(3) Within ninety days after the association's financial statements are due to be

filed with the association's domiciliary regulator, the association shall provide

to the commissioner an annual certification by the association's domiciliary

regulator of the solvency of each underwriter member; or if a certification is

unavailable, financial statements, prepared by independent public

accountants, of each underwriter member of the association.

c. The commissioner shall create and publish a list of qualified jurisdictions, under

which an assuming insurer licensed and domiciled in such jurisdiction is eligible

to be considered for certification by the commissioner as a certified reinsurer.

(1) In order to determine whether the domiciliary jurisdiction of a non-United

States assuming insurer is eligible to be recognized as a qualified

jurisdiction, the commissioner shall evaluate the appropriateness and

effectiveness of the reinsurance supervisory system of the jurisdiction, both

initially and on an ongoing basis, and consider the rights, benefits, and the

extent of reciprocal recognition afforded by the non-United States jurisdiction

to reinsurers licensed and domiciled in the United States. A qualified

jurisdiction must agree to share information and cooperate with the

commissioner with respect to all certified reinsurers domiciled within that

jurisdiction. A jurisdiction may not be recognized as a qualified jurisdiction if

the commissioner has determined the jurisdiction does not adequately and

promptly enforce final United States judgments and arbitration awards.

Additional factors may be considered in the discretion of the commissioner.

(2) A list of qualified jurisdictions must be published through the national

association of insurance commissioner committee process. The

commissioner shall consider this list in determining qualified jurisdictions. If

the commissioner approves a jurisdiction as qualified which does not appear

on the list of qualified jurisdictions, the commissioner shall provide

thoroughly documented justification in accordance with criteria to be

developed under regulations.

(3) United States jurisdictions that meet the requirement for accreditation under

the national association of insurance commissioners financial standards and

accreditation program must be recognized as qualified jurisdictions.

(4) If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified

jurisdiction, in lieu of revocation, the commissioner may suspend the

reinsurer's certification indefinitely.

d. The commissioner shall assign a rating to each certified reinsurer. Giving due

consideration to the financial strength ratings that have been assigned by rating

agencies deemed acceptable to the commissioner pursuant to rule. The

commissioner shall publish a list of all certified reinsurers and the reinsurer's

ratings.

e. A certified reinsurer shall secure obligations assumed from United States ceding

insurers under this subsection at a level consistent with the certified reinsurer's

rating, as specified in rules adopted by the commissioner.

(1) In order for a domestic ceding insurer to qualify for full financial statement

credit for reinsurance ceded to a certified reinsurer, the certified reinsurer

shall maintain security in a form acceptable to the commissioner and

consistent with the provisions of section 26.1-31.2-02 or in a multibeneficiary

trust in accordance with subsection 5, except as otherwise provided in this

subsection.

(2) If a certified reinsurer maintains a trust to fully secure the certified reinsurer's

obligations subject to subsection 5, and chooses to secure the certified

reinsurer's obligations incurred as a certified reinsurer in the form of a

multibeneficiary trust, the certified reinsurer shall maintain separate trust

accounts for the certified reinsurer's obligations incurred under reinsurance

agreements issued or renewed as a certified reinsurer with reduced security

as permitted by this subsection or comparable laws of other United States

jurisdictions and for the certified reinsurer's obligations subject to

subsection 5. As a condition to the grant of certification under subsection 6,

the certified reinsurer must have bound itself, by the language of the trust

and agreement with the commissioner with principal regulatory oversight of

each such trust account, to fund, upon termination of any such trust

account, out of the remaining surplus of such trust any deficiency of any

other such trust account.

(3) The minimum trusteed surplus requirements provided in subsection 5 are

not applicable with respect to a multibeneficiary trust maintained by a

certified reinsurer for the purpose of securing obligations incurred under this

subsection, except that such trust must maintain a minimum trusteed

surplus of ten million dollars.

(4) With respect to obligations incurred by a certified reinsurer under this

subsection, if the security is insufficient, the commissioner shall reduce the

allowable credit by an amount proportionate to the deficiency, and may

impose further reductions in allowable credit upon finding there is a material

risk the certified reinsurer's obligations will not be paid in full when due.

(5) For purposes of this subsection, a certified reinsurer whose certification has

been terminated for any reason must be treated as a certified reinsurer

required to secure one hundred percent of the certified reinsurer's

obligations.

(a) As used in this subsection, "terminated" refers to revocation,

suspension, voluntary surrender, and inactive status.

(b) If the commissioner continues to assign a higher rating as permitted

by other provisions of this section, this requirement does not apply to

a certified reinsurer in inactive status or to a reinsurer whose

certification has been suspended.

f. If an applicant for certification has been certified as a reinsurer in a national

association of insurance commissioners accredited jurisdiction, the commissioner

may defer to that jurisdiction's certification, and may defer to the rating assigned

by that jurisdiction, and such assuming insurer must be considered to be a

certified reinsurer in this state.

g. A certified reinsurer that ceases to assume new business in this state may

request to maintain the certified reinsurer's certification in inactive status in order

to continue to qualify for a reduction in security for the certified reinsurer's in-force

business. An inactive certified reinsurer shall continue to comply with all

applicable requirements of this subsection, and the commissioner shall assign a

rating that takes into account, if relevant, the reasons why the reinsurer is not

assuming new business.

7. a. Credit must be allowed if the reinsurance is ceded to an assuming insurer

meeting each of the following conditions:

(1) The assuming insurer must have the assuming insurer's head office or be

domiciled in, as applicable, and be licensed in a reciprocal jurisdiction. A

"reciprocal jurisdiction" is a jurisdiction that meets one of the following:

(a) A non-United States jurisdiction that is subject to an in-force covered

agreement with the United States, each within its legal authority, or, in

the case of a covered agreement between the United States and

European Union, is a member state of the European Union. As used in

this subsection, a "covered agreement" is an agreement entered

pursuant to the federal Dodd-Frank Wall Street Reform and Consumer

Protection Act [31 U.S.C. 313 and 314] which is currently in effect or in

a period of provisional application and addresses the elimination,

under specified conditions, of collateral requirements as a condition

for entering a reinsurance agreement with a ceding insurer domiciled

in this state or for allowing the ceding insurer to recognize credit for

reinsurance;

(b) A United States jurisdiction that meets the requirements for

accreditation under the national association of insurance

commissioners financial standards and accreditation program

recognized by the commissioner; or

(c) A qualified jurisdiction, as determined by the commissioner pursuant

to subdivision c of subsection 6, which is not otherwise described in

subdivision a or b of subsection 6 and which meets certain additional

requirements, consistent with the terms and conditions of in-force

covered agreements, as specified by rules adopted by the

commissioner.

(2) The assuming insurer must have and maintain, on an ongoing basis,

minimum capital and surplus, or its equivalent, calculated according to the

methodology of the assuming insurer's domiciliary jurisdiction, in an amount

in compliance with rules adopted by the commissioner. If the assuming

insurer is an association, including incorporated and individual

unincorporated underwriters, the assuming insurer must have and maintain,

on an ongoing basis, minimum capital and surplus equivalents, net of

liabilities, calculated according to the methodology applicable in the

domiciliary jurisdiction of the assuming insurer, and a central fund containing

a balance in compliance with rules adopted by the commissioner.

(3) The assuming insurer must have and maintain, on an ongoing basis, a

minimum solvency or capital ratio, as applicable, in compliance with rules

adopted by the commissioner. If the assuming insurer is an association,

including incorporated and individual unincorporated underwriters, the

assuming insurer must have and maintain, on an ongoing basis, a minimum

solvency or capital ratio in the reciprocal jurisdiction in which the assuming

insurer has the assuming insurer's head office or is domiciled, as applicable,

and is also licensed.

(4) The assuming insurer shall agree and provide adequate assurance to the

commissioner, in a form in compliance with rules adopted by the

commissioner, as follows:

(a) The assuming insurer shall provide prompt written notice and

explanation to the commissioner if the assuming insurer falls below

the minimum requirements set forth in paragraph 2 or 3, or if any

regulatory action is taken against the assuming insurer for serious

noncompliance with applicable law;

(b) The assuming insurer shall consent in writing to the jurisdiction of the

courts of this state and to the appointment of the commissioner as

agent for service of process. The commissioner may require consent

for service of process be provided to the commissioner and included

in each reinsurance agreement. This subparagraph does not limit or in

any way alter the capacity of parties to a reinsurance agreement to

agree to alternative dispute resolution mechanisms, except to the

extent such agreements are unenforceable under applicable

insolvency or delinquency laws;

(c) The assuming insurer shall consent in writing to pay all final

judgments, wherever enforcement is sought, obtained by a ceding

insurer or the ceding insurer's legal successor, which have been

declared enforceable in the jurisdiction in which the judgment was

obtained;

(d) Each reinsurance agreement must include a provision requiring the

assuming insurer to provide security in an amount equal to

one hundred percent of the assuming insurer's liabilities attributable to

reinsurance ceded pursuant to that agreement if the assuming insurer

resists enforcement of a final judgment that is enforceable under the

law of the jurisdiction in which the final judgment was obtained or a

properly enforceable arbitration award, whether obtained by the

ceding insurer or by the ceding insurer's legal successor on behalf of

the ceding insurer's resolution estate; and

(e) The assuming insurer shall confirm the assuming insurer is not

presently participating in any solvent scheme of arrangement that

involves this state's ceding insurers, and agree to notify the ceding

insurer and the commissioner and to provide security in an amount

equal to one hundred percent of the assuming insurer's liabilities to

the ceding insurer, if the assuming insurer enters such a solvent

scheme of arrangement. Such security must be in a form consistent

with the provisions of subsection 6 and section 26.1-31.2-02 and as

specified by the commissioner by rule.

(5) The assuming insurer or the assuming insurer's legal successor shall

provide, if requested by the commissioner, on behalf of the assuming insurer

and any legal predecessors, certain documentation to the commissioner, as

specified by the commissioner by regulation.

(6) The assuming insurer shall maintain a practice of prompt payment of claims

under reinsurance agreements, pursuant to criteria set forth by the

commissioner by rule.

(7) The assuming insurer's supervisory authority shall confirm to the

commissioner on an annual basis, as of the preceding December thirty-first

or at the annual date otherwise statutorily reported to the reciprocal

jurisdiction, that the assuming insurer complies with the requirements set

forth in paragraphs 2 and 3.

(8) This subdivision does not preclude an assuming insurer from providing the

commissioner with information on a voluntary basis.

b. The commissioner shall create timely and publish a list of reciprocal jurisdictions.

(1) A list of reciprocal jurisdictions is published through the national association

of insurance commissioners committee process. The commissioner's list

must include any reciprocal jurisdiction as defined under subparagraphs a

and b of paragraph 1 of subdivision a, and must consider any other

reciprocal jurisdiction included on the national association of insurance

commissioners' list. The commissioner may approve a jurisdiction that does

not appear on the national association of insurance commissioners' list of

reciprocal jurisdictions in accordance with criteria to be set by rules adopted

by the commissioner.

(2) The commissioner may remove a jurisdiction from the list of reciprocal

jurisdictions upon a determination the jurisdiction no longer meets the

requirements of a reciprocal jurisdiction, in accordance with a process set by

rules adopted by the commissioner, except that the commissioner may not

remove from the list a reciprocal jurisdiction as defined under

subparagraphs a and b of paragraph 1 of subdivision a. Upon removal of a

reciprocal jurisdiction from this list credit for reinsurance ceded to an

assuming insurer that has the assuming insurer's home office or is domiciled

in that jurisdiction must be allowed, if otherwise allowed pursuant to chapter

26.1-31.2.

c. The commissioner timely shall create and publish a list of assuming insurers that

have satisfied the conditions set forth in this subsection and to which cessions

must be granted credit in accordance with this subsection. The commissioner

may add an assuming insurer to the list if a national association of insurance

commissioners accredited jurisdiction has added the assuming insurer to a list of

the assuming insurers or if, upon initial eligibility, the assuming insurer submits

the information to the commissioner as required under paragraph 4 of

subdivision a and complies with any additional requirements the commissioner

may impose by rule, except to the extent the requirements conflict with an

applicable covered agreement.

d. If the commissioner determines an assuming insurer no longer meets one or

more of the requirements under this subsection, the commissioner may revoke or

suspend the eligibility of the assuming insurer for recognition under this

subsection in accordance with procedures set forth by rule.

(1) While an assuming insurer's eligibility is suspended, a reinsurance

agreement issued, amended, or renewed after the effective date of the

suspension does not qualify for credit except to the extent the assuming

insurer's obligations under the contract are secured in accordance with

section 26.1-31.2-02.

(2) If an assuming insurer's eligibility is revoked, credit for reinsurance may not

be granted after the effective date of the revocation with respect to any

reinsurance agreements entered by the assuming insurer, including

reinsurance agreements entered before the date of revocation, except to the

extent the assuming insurer's obligations under the contract are secured in a

form acceptable to the commissioner and consistent with the provisions of

section 26.1-31.2-02.

e. If subject to a legal process of rehabilitation, liquidation, or conservation, as

applicable, the ceding insurer, or the ceding insurer's representative, may seek

and, if determined appropriate by the court in which the proceedings are pending,

may obtain an order requiring the assuming insurer post security for all

outstanding ceded liabilities.

f. This subsection does not limit or in any way alter the capacity of parties to a

reinsurance agreement to agree on requirements for security or other terms in

that reinsurance agreement, except as expressly prohibited by this chapter.

g. Credit may be taken under this subsection only for reinsurance agreements

entered, amended, or renewed on or after the effective date of this Act, and only

with respect to losses incurred and reserves reported on or after the later of the

date on which the assuming insurer has met all eligibility requirements pursuant

to subdivision a and the effective date of the new reinsurance agreement,

amendment, or renewal.

(1) This subdivision does not alter or impair a ceding insurer's right to take

credit for reinsurance, to the extent that credit is not available under this

subsection, as long as the reinsurance qualifies for credit under any other

applicable provision of this chapter.

(2) This subsection does not authorize an assuming insurer to withdraw or

reduce the security provided under any reinsurance agreement except as

permitted by the terms of the agreement.

(3) This subsection does not limit or in any way alter the capacity of parties to

any reinsurance agreement to renegotiate the agreement.

8. Credit must be allowed when the reinsurance is ceded to an assuming insurer not

meeting the requirements of subsection 2, 3, 4, 5, 6, or 7 but only as to the insurance

of risks located in jurisdictions where the reinsurance is required by applicable law or

regulation of that jurisdiction.

9. a. If the assuming insurer is not licensed, accredited, or certified to transact

insurance or reinsurance in this state, the credit permitted by subsections 4 and 5

may not be allowed unless the assuming insurer agrees in the reinsurance

agreements:

(1) In the event of the failure of the assuming insurer to perform its obligations

under the terms of the reinsurance agreement, the assuming insurer, at the

request of the ceding insurer, shall submit to the jurisdiction of any court of

competent jurisdiction in any state of the United States, will comply with all

requirements necessary to give the court jurisdiction, and will abide by the

final decision of the court or of any appellate court in the event of an appeal;

and

(2) To designate the commissioner or a designated attorney as its true and

lawful attorney upon whom may be served any lawful process in any action,

suit, or proceeding instituted by or on behalf of the ceding insurer.

b. This subsection is not intended to conflict with or override the obligation of the

parties to a reinsurance agreement to arbitrate their disputes, if this obligation is

created in the agreement.

10. If the assuming insurer does not meet the requirements of subsection 2, 3, 4, or 8, the

credit permitted by subsection 5 or 6 may not be allowed unless the assuming insurer

agrees in the trust agreements to the following conditions:

a. Notwithstanding any other provisions in the trust instrument, if the trust fund is

inadequate because the trust fund contains an amount less than the amount

required by subdivision c of subsection 5, or if the grantor of the trust has been

declared insolvent or placed into receivership, rehabilitation, liquidation, or similar

proceedings under the laws of its state or country of domicile, the trustee shall

comply with an order of the commissioner with regulatory oversight over the trust

or with an order of a court of competent jurisdiction directing the trustee to

transfer to the commissioner with regulatory oversight all of the assets of the trust

fund.

b. The assets must be distributed by and claims must be filed with and valued by

the commissioner with regulatory oversight in accordance with the laws of the

state in which the trust is domiciled which are applicable to the liquidation of

domestic insurers.

c. If the commissioner with regulatory oversight determines the assets of the trust

fund or any part of this trust fund are not necessary to satisfy the claims of the

United States ceding insurers of the grantor of the trust, the assets or part of the

assets must be returned by the commissioner with regulatory oversight to the

trustee for distribution in accordance with the trust agreement.

d. The grantor shall waive any right otherwise available to the grantor under United

States law that is inconsistent with this provision.

11. If an accredited or certified reinsurer ceases to meet the requirements for accreditation

or certification, the commissioner may suspend or revoke the reinsurer's accreditation

or certification.

a. The commissioner shall give the reinsurer notice and opportunity for a hearing.

The suspension or revocation may not take effect until after the commissioner's

order on a hearing, unless:

(1) The reinsurer waives the reinsurer's right to a hearing;

(2) The commissioner's order is based on regulatory action by the reinsurer's

domiciliary jurisdiction or the voluntary surrender or termination of the

reinsurer's eligibility to transact insurance or reinsurance business in the

reinsurer's domiciliary jurisdiction or in the primary certifying state of the

reinsurer under subdivision f of subsection 6; or

(3) The commissioner finds an emergency requires immediate action and a

court of competent jurisdiction has not stayed the commissioner's action.

b. During the period of suspension of a reinsurer's accreditation or certification, a

reinsurance contract issued or renewed after the effective date of the suspension

does not qualify for credit except to the extent that the reinsurer's obligations

under the contract are secured in accordance with section 26.1-31.2-02. If a

reinsurer's accreditation or certification is revoked, credit for reinsurance may not

be granted after the effective date of the revocation, except to the extent the

reinsurer's obligations under the contract are secured in accordance with

subdivision e of subsection 5 of section 26.1-31.2-02.

12. a. A ceding insurer shall take steps to manage the ceding insurer's reinsurance

recoverables proportionate to the ceding insurer's own book of business. A

domestic ceding insurer shall notify the commissioner within thirty days after

reinsurance recoverables from any single assuming insurer, or group of affiliated

assuming insurers, exceed fifty percent of the domestic ceding insurer's last

reported surplus to policyholders, or after it is determined reinsurance

recoverables from any single assuming insurer, or group of affiliated assuming

insurers, is likely to exceed this limit. The notification must demonstrate the

exposure is safely managed by the domestic ceding insurer.

b. A ceding insurer shall take steps to diversify the ceding insurer's reinsurance

program. A domestic ceding insurer shall notify the commissioner within thirty

days after ceding to any single assuming insurer, or group of affiliated assuming

insurers, more than twenty percent of the ceding insurer's gross written premium

in the prior calendar year, or after the ceding insurer's determined the reinsurance

ceded to any single assuming insurer, or group of affiliated assuming insurers, is

likely to exceed this limit. The notification must demonstrate the exposure is

safely managed by the domestic ceding insurer.

c. Credit for reinsurance ceded to a certified reinsurer is limited to reinsurance

contracts entered or renewed on or after the effective date of the commissioner's

certification of the assuming insurer.
N.D. Cent. Code § 26.1-26-17 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-17
26.1-26-17. License requirement - Surplus lines insurance producer
Status: in_force

26.1-26-17. License requirement - Surplus lines insurance producer

An applicant for a license as a surplus lines insurance producer must be licensed in this

state as an insurance producer qualified as to the line or lines to be written.
N.D. Cent. Code § 26.1-11-08 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-08
26.1-11-08. Grounds for revocation of authority of foreign company
Status: in_force

26.1-11-08. Grounds for revocation of authority of foreign company

The commissioner shall revoke or suspend all certificates of authority granted to a foreign

insurance company or to its agents if, upon examination or other evidence, the commissioner is

of the opinion that:

1. The company is in an unsound condition.

2. The company has failed to comply with any provision of the applicable laws of this

state.

3. The company, or any officer or agent thereof, has refused to submit to examination or

to perform any other legal obligation.
N.D. Cent. Code § 26.1-25-12 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-12
26.1-25-12. Examinations
Status: in_force

26.1-25-12. Examinations

The commissioner may, as often as the commissioner deems expedient, make or cause to

be made an examination of each advisory organization referred to in section 26.1-25-10.1 and

of each group, association, or other organization referred to in section 26.1-25-10.5. The

reasonable costs of any examination must be paid by the advisory organization, or group,

association, or other organization examined upon presentation to it of a detailed account of the

costs. The officer, manager, agents, and employees of the advisory organization, or group,

association, or other organization may be examined at any time under oath and shall exhibit all

books, records, accounts, documents, or agreements governing its method of operation.

The commissioner shall furnish two copies of the examination report to the organization,

group, or association examined and shall notify the organization, group, or association that it

may, within twenty days thereafter, request a hearing on the report or on any facts or

recommendations therein. Before filing any report for public inspection, the commissioner shall

grant a hearing to the organization, group, or association examined. The report of any

examination, when filed for public inspection, is admissible in evidence in any action or

proceeding brought by the commissioner against the organization, group, or association

examined, or its officers or agents, and is prima facie evidence of the facts stated therein. The

commissioner may withhold the report of any examination from public inspection for the time as

the commissioner deems proper.

In lieu of any such examination the commissioner may accept the report of an examination

made by the insurance supervisory official of another state, pursuant to the laws of that state.
N.D. Cent. Code § 26.1-44-03.3 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-03.3
26.1-44-03.3. Exemption from diligent search requirements
Status: repealed

26.1-44-03.3. Exemption from diligent search requirements

Repealed by S.L. 2025, ch. 279, § 15.
N.D. Cent. Code § 26.1-34-08 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-08
26.1-34-08. Benefits on cessation of payment of considerations off the anniversary
Status: in_force

26.1-34-08. Benefits on cessation of payment of considerations off the anniversary

Any paid-up annuity, cash surrender, or death benefits available at any time, other than on

the contract anniversary, under any annuity contract with fixed scheduled considerations, must

be calculated with allowance for the lapse of time and the payment of any scheduled

considerations beyond the beginning of the contract year in which cessation of payment of

considerations under the contract occurs.
N.D. Cent. Code § 26.1-03.1-08 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-08
26.1-03.1-08. Confidentiality - Prohibition on announcements - Prohibition on use in ratemaking
Status: in_force

26.1-03.1-08. Confidentiality - Prohibition on announcements - Prohibition on use in

ratemaking.

1. All risk-based capital reports, to the extent the information therein is not required to be

set forth in a publicly available annual statement schedule, and risk-based capital

plans, including the results or report of any examination or analysis of an insurer

performed under this chapter and any corrective order issued by the commissioner

pursuant to examination or analysis, with respect to any domestic insurer or foreign

insurer that are in the possession or control of the insurance department are

confidential and privileged, not subject to section 44-04-18, not subject to subpoena,

and not subject to discovery and are not admissible in evidence in any private civil

action. However, the commissioner may use any document, material, or other

information in the furtherance of any regulatory or legal action brought as a part of the

commissioner's official duties.

2. Neither the commissioner nor any person that received any document, material, or

other information while acting under the authority of the commissioner may be

permitted or required to testify in any private civil action concerning any confidential

document, material, or information subject to subsection 1.

3. To assist in the performance of the commissioner's duties, the commissioner:

a. May share any document, material, or other information, including any

confidential and privileged document, material, or information subject to

subsection 1, with any other state, federal, or international regulatory agency; the

national association of insurance commissioners and its affiliates and

subsidiaries; and any state, federal, and international law enforcement authority,

provided the recipient agrees to maintain the confidentiality and privileged status

of the document, material, or other information.

b. May receive any document, material, or information, including any otherwise

confidential and privileged document, material, or information, from the national

association of insurance commissioners and its affiliates and subsidiaries and

from any regulatory and law enforcement official of any other foreign or domestic

jurisdiction, and shall maintain as confidential or privileged any document,

material, or information received with notice or the understanding that it is

confidential or privileged under the laws of the jurisdiction that is the source of the

document, material, or information.

c. May enter any agreement governing sharing and use of information consistent

with this subsection.

4. Waiver of any applicable privilege or claim of confidentiality in any document, material,

or information does not occur as a result of disclosure to the commissioner under this

section or as a result of sharing as authorized in subsection 3.

5. It is the judgment of the legislative assembly that the comparison of an insurer's total

adjusted capital to any of its risk-based capital levels is a regulatory tool that may

indicate the need for possible corrective action with respect to the insurer, and is not

intended as a means to rank insurers generally. Therefore, except as otherwise

required under this chapter, the making, publishing, disseminating, circulating, or

placing before the public, or causing, directly or indirectly, to be made, published,

disseminated, circulated, or placed before the public, in a newspaper, magazine, or

other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over

any radio or television station, or in any other way, an advertisement, announcement,

or statement containing an assertion, representation, or statement with regard to the

risk-based capital levels of any insurer, or of any component derived in the calculation,

by any insurer, insurance producer, broker, or other person engaged in any manner in

the insurance business would be misleading and is therefore prohibited. However, if

any materially false statement with respect to the comparison regarding an insurer's

total adjusted capital to its risk-based capital levels, or any of them, or an inappropriate

comparison of any other amount to the insurer's risk-based capital levels is published

in any written publication and the insurer is able to demonstrate to the commissioner

with substantial proof the falsity of the statement, or the inappropriateness, as the case

may be, then the insurer may publish an announcement in a written publication if the

sole purpose of the announcement is to rebut the materially false statement.

6. It is the further judgment of the legislative assembly that the risk-based capital

instructions, risk-based capital reports, adjusted risk-based capital reports, risk-based

capital plans, and revised risk-based capital plans are intended solely for use by the

commissioner in monitoring the solvency of insurers and the need for possible

corrective action with respect to insurers and may not be used by the commissioner for

ratemaking nor considered or introduced as evidence in any rate proceeding nor used

by the commissioner to calculate or derive any elements of an appropriate premium

level or rate of return for any line of insurance that an insurer or any affiliate is

authorized to write.
N.D. Cent. Code § 26.1-36-09.9 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.9
26.1-36-09.9. Dental anesthesia and hospitalization coverage
Status: in_force

26.1-36-09.9. Dental anesthesia and hospitalization coverage

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

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

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

association basis unless the policy, contract, or evidence of coverage provides benefits for

anesthesia and hospitalization for dental care provided to a covered individual who is a child

under age nine, is severely disabled, or who has a medical condition and requires

hospitalization or general anesthesia for dental care treatment. A carrier may require

preauthorization of hospitalization for dental care procedures under this section in the same

manner preauthorization is required for hospitalization for other covered diseases or conditions.

Coverage under this section applies regardless of whether the services are provided in a

hospital or an ambulatory surgery center.
N.D. Cent. Code § 26.1-27-06 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-06
26.1-27-06. Contents of agreement - Requirements
Status: in_force

26.1-27-06. Contents of agreement - Requirements

The agreement between the administrator and the insurer must contain:

1. A provision with respect to underwriting or other standards pertaining to the business

underwritten by the insurer.

2. A provision that the administrator may use only such advertising pertaining to the

business underwritten by an insurer as has been approved by the insurer in advance

of its use.

3. A provision that withdrawals from the fiduciary account may be made only for:

a. Remittance to an insurer entitled thereto.

b. Deposit in an account maintained in the name of the insurer.

c. Transfer to and deposit in a claims paying account, with claims to be paid as

provided in section 26.1-27-10.

d. Payment to a group policyholder for remittance to the insurer entitled thereto.

e. Payment to the administrator of its commission, fees, or charges.

f. Remittance of return premiums to the person or persons entitled thereto.

4. Provisions which include the requirements of sections 26.1-27-08, 26.1-27-10,

26.1-27-11, and 26.1-27-12 except insofar as those requirements do not apply to the

functions performed by the administrator.
N.D. Cent. Code § 26.1-13-12 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-12
26.1-13-12. General powers, liabilities, and duties of county mutual company - Office - Name - Limitations
Status: in_force

26.1-13-12. General powers, liabilities, and duties of county mutual company - Office -

Name - Limitations.

A county mutual insurance company has the powers and is subject to the liabilities and

duties of other insurance companies, except:

1. If the company is organized by the residents of a single county, the name of the county

together with the word "county" must be embraced in the corporate name of the

company.

2. Notwithstanding contrary territorial limitations in this chapter, a county mutual

insurance company may operate and issue the following policies in all the counties of

the state:

a. Protection against loss or damage by any covered hazard to a seasonal dwelling

if the primary residence is insured by the company in an authorized county.

b. Protection against loss or damage by tornadoes;

c. Protection against loss or damage by windstorms;

d. Protection against loss or damage by cyclones;

e. Protection against loss or damage by hail, except upon growing crops; and

f. Protection against loss or damage by any hazard upon any risk upon livestock.
N.D. Cent. Code § 26.1-26.8-14 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-14
26.1-26.8-14. Record retention
Status: in_force

26.1-26.8-14. Record retention

1. A public adjuster shall maintain a complete record of each transaction as a public

adjuster. The records required by this section include:

a. The name of the insured;

b. The date, location, and amount of the loss;

c. A copy of the contract between the public adjuster and the insured;

d. The name of the insurer, amount, expiration date, and policy number for each

policy carried with respect to the loss;

e. An itemized statement of the amount recovered for the insured;

f. An itemized statement of all compensation received by the public adjuster, from

any source, in connection with the loss;

g. A register of all money received, deposited, disbursed, or withdrawn in connection

with a transaction with an insured, including fees, transfers, and disbursements

from a trust account and all transactions concerning all interest-bearing accounts;

h. The name of the public adjuster who executed the contract;

i. The name of the attorney representing the insured, if applicable, and the name of

the claims representative of the insurer; and

j. Evidence of financial responsibility in a format prescribed by the commissioner.

2. A public adjuster shall maintain the records for at least six years after the termination

of the transaction with an insured and shall open the records to examination by the

department at all times.
N.D. Cent. Code § 26.1-02.1-03 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-03
26.1-02.1-03. Disclosure of information
Status: repealed

26.1-02.1-03. Disclosure of information

Repealed by S.L. 2003, ch. 235, § 11.
N.D. Cent. Code § 26.1-22-10.1 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-10.1
26.1-22-10.1. State-owned property - Insured at replacement cost
Status: repealed

26.1-22-10.1. State-owned property - Insured at replacement cost

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-25-10.1 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-10.1
26.1-25-10.1. Licensing advisory organizations
Status: in_force

26.1-25-10.1. Licensing advisory organizations

1. No advisory organization may provide any service relating to the rates of any

insurance subject to this chapter, and no insurer may utilize the services of such

organization for such purposes unless the organization has obtained a license under

subsection 3.

2. No advisory organization may refuse to supply any services for which it is licensed in

this state to any insurer authorized to do business in this state and offering to pay the

fair and usual compensation for the services.

3. a. An advisory organization applying for a license shall include with its application:

(1) A copy of its constitution, charter, articles of organization, agreement,

association or incorporation, and a copy of its bylaws, plan of operation, and

any other rules or regulations governing the conduct of its business;

(2) A list of its members and subscribers;

(3) The name and address of one or more residents of this state upon whom

notices, process affecting it, or orders of the commissioner may be served;

(4) A statement showing its technical qualifications for acting in the capacity for

which it seeks a license;

(5) A biography of the ownership and management of the organization; and

(6) Any other relevant information and documents that the commissioner may

require.

b. Every organization that has applied for a license shall notify the commissioner of

every material change in the facts or in the documents on which its application

was based. Any amendment to a document filed under this section must be filed

at least thirty days before it becomes effective.

c. If the commissioner finds that the applicant and the natural persons through

whom it acts are competent, trustworthy, and technically qualified to provide the

services proposed, and that all requirements of the law are met, the

commissioner shall issue a license specifying the authorized activity of the

applicant. The commissioner may not issue a license if the proposed activity

would tend to create a monopoly or to substantially lessen the competition in any

market.

d. Licenses issued pursuant to this section are perpetual in duration unless the

license is suspended or revoked. The fee for the license is fifty dollars per year.

The commissioner may at any time, after hearing, revoke or suspend the license

of an advisory organization that does not comply with the requirements and

standards of this chapter.
N.D. Cent. Code § 26.1-36-09.12 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.12
26.1-36-09.12. Medical services related to suicide
Status: in_force

26.1-36-09.12. Medical services related to suicide

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

organization may not deliver, issue, execute, or renew any hospital, surgical, medical, or major

medical benefit policy on an individual, group, blanket, franchise, or association basis unless the

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

policy or contract for illnesses, for health services to any individual covered under the policy or

contract for injury or illness resulting from suicide, attempted suicide, or self-inflicted injury. The

medical benefits provided for in this section are exempt from section 54-03-28.
N.D. Cent. Code § 26.1-39-14 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-14
26.1-39-14. Five-day notice exception for cancellation of property and casualty policies
Status: in_force

26.1-39-14. Five-day notice exception for cancellation of property and casualty

policies.

Policies subject to sections 26.1-39-10 through 26.1-39-21 may be canceled upon five days'

written notice to the named insureds if one or more of the following conditions exist:

1. Buildings with at least sixty-five percent of the rental units in the building unoccupied.

2. Buildings that have been damaged by a peril insured against and the insured has

stated or such time has elapsed as clearly indicates that the damage will not be

repaired.

3. Buildings to which, following a fire, permanent repairs have not commenced within

sixty days following satisfactory adjustment of loss.

4. Buildings that have been unoccupied sixty consecutive days, except buildings that

have a seasonal occupancy, and buildings actually in the course of construction or

repair and reconstruction which are properly secured against unauthorized entry.

5. Buildings that are in danger of collapse because of serious structural conditions or

those buildings subject to extremely hazardous conditions not contemplated in filed

rating plans such as those buildings that are in a state of disrepair as to be dilapidated.

6. Buildings on which, because of their physical condition, there is an outstanding order

to vacate or an outstanding demolition order, or which have been declared unsafe in

accordance with applicable law.

7. Buildings from which fixed and salvageable items have been or are being removed

and the insured can give no reasonable explanation for the removal.

8. Buildings on which there is reasonable knowledge and belief that the property is

endangered and is not reasonably protected from possible arson for the purpose of

defrauding an insurer.

9. Buildings with any of the following conditions:

a. Failure to furnish heat, water, sewer service, or public lighting for thirty

consecutive days or more.

b. Failure to correct conditions dangerous to life, health, or safety.

c. Failure to maintain the building in accordance with applicable law.

d. Failure to pay property taxes for more than one year.

10. Buildings that have characteristics of ownership condition, occupancy, or maintenance

which are violative of law or public policy.
N.D. Cent. Code § 26.1-24-01 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-01
26.1-24-01. When premium payable
Status: in_force

26.1-24-01. When premium payable

An insurer is entitled to payment of the premium as soon as the thing insured is exposed to

the peril insured against.
N.D. Cent. Code § 26.1-36.3-04 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-04
26.1-36.3-04. Restrictions relating to premium rates
Status: in_force

26.1-36.3-04. Restrictions relating to premium rates

1. This section only applies to a health benefit plan offered by a small employer who

employed an average of at least two but not more than twenty-five eligible employees

on business days during the preceding calendar year and who employs at least two

employees on the first day of the plan year.

2. Premium rates for health benefit plans subject to this section and section 26.1-36-37.2

are subject to the following:

a. The index rate for a rating period for any class of business may not exceed the

index rate for any other class of business by more than fifteen percent.

b. For a class of business, the premium rates charged during a rating period to

small employers with similar case characteristics for the same or similar

coverage, or the rates that could be charged to the employers under the rating

system for that class of business, may not vary from the index rate by more than

twenty percent of the index rate.

c. The percentage increase in the premium rate charged to a small employer for a

new rating period may not exceed the sum of:

(1) The percentage change in the new business premium rate measured from

the first day of the prior rating period to the first day of the new rating period.

In the case of a health benefit plan into which the small employer carrier is

no longer enrolling new small employers, the small employer carrier shall

use the percentage change in the base premium rate, provided that the

change does not exceed, on a percentage basis, the change in the new

business premium rate for the most similar health benefit plan into which the

small employer carrier is actively enrolling new small employers;

(2) Any adjustment due to the claim experience, health status, or duration of

coverage of the employees or dependents of the small employer as

determined from the small employer carrier's rate manual for the class of

business; however, the adjustment may not exceed fifteen percent annually

and must be adjusted pro rata for rating periods of less than one year; and

(3) Any adjustment due to change in coverage or change in the case

characteristics of the small employer, as determined from the small

employer carrier's rate manual for the class of business.

d. Adjustments in rates for claim experience, health status, and duration of coverage

may not be charged to individual employees or dependents. Premium rates

charged for a health benefit plan may not vary by a ratio of greater than four to

one after January 1, 1997. Any adjustment must be applied uniformly to the rates

charged for all employees and dependents of the small employer.

e. A small employer carrier may utilize industry as a case characteristic in

establishing premium rates, but the highest rate factor associated with any

industry classification may not exceed the lowest rate factor associated with any

industry classification by more than fifteen percent.

f. In the case of health benefit plans delivered or issued for delivery before

August 1, 1993, a premium rate for a rating period may exceed the ranges set

forth in subdivisions a and b for a period of three years following August 1, 1993.

Under this subdivision, the percentage increase in the premium rate charged to a

small employer for a new rating period may not exceed the sum of:

(1) The percentage change in the new business premium rate measured from

the first day of the prior rating period to the first day of the new rating period.

In the case of a health benefit plan into which the small employer carrier is

no longer enrolling new small employers, the small employer carrier shall

use the percentage change in the base premium rate, provided that the

change does not exceed, on a percentage basis, the change in the new

business premium rate for the most similar health benefit plan into which the

small employer carrier is actively enrolling new small employers.

(2) Any adjustment due to change in coverage or change in the case

characteristics of the small employer, as determined from the carrier's rate

manual for the class of business.

g. (1) Small employer carriers shall apply rating factors, including case

characteristics, consistently with respect to all small employers in a class of

business. Rating factors must produce premiums for identical groups which

differ only by amounts attributable to plan design and do not reflect

differences due to the nature of the groups assumed to select particular

health benefit plans.

(2) A small employer carrier shall treat all health benefit plans issued or

renewed in the same calendar month as having the same rating period.

h. For the purposes of this subsection, a health benefit plan that uses a restricted

provider network may not be considered similar coverage to a health benefit plan

that does not use a restricted provider network, if the use of the restricted

provider network results in substantial differences in claims costs.

i. A small employer carrier may not use case characteristics, other than age,

gender, industry, geographic area, family composition, and group size, without

prior approval of the commissioner. Gender may not be used as a case

characteristic after January 1, 1996.

j. The commissioner shall adopt rules to:

(1) Assure that differences in rates charged for health benefit plans by small

employer carriers are reasonable and reflect objective differences in plan

design, not including differences due to the nature of the groups assumed to

select particular health benefit plans;

(2) Prescribe the manner in which case characteristics may be used by small

employer carriers; and

(3) Otherwise implement this section.

3. A small employer carrier may not transfer a small employer involuntarily into or out of a

class of business. A small employer carrier may not offer to transfer a small employer

into or out of a class of business unless the offer is made to transfer all small

employers in the class of business without regard to case characteristics, claim

experience, health status, or duration of coverage.

4. The commissioner may suspend for a specified period the application of subdivision a

of subsection 2 as to the premium rates applicable to one or more small employers

included within a class of business of a small employer carrier for one or more rating

periods upon a filing by the small employer carrier and a finding by the commissioner

that the suspension is reasonable in light of the financial condition of the small

employer carrier or that the suspension would enhance the efficiency and fairness of

the marketplace for small employer health insurance.

5. In connection with the offering for sale of any health benefit plan to a small employer, a

small employer carrier shall make a reasonable disclosure, as part of its solicitation

and sales materials, of:

a. The extent to which premium rates for a specified small employer are established

or adjusted based upon the actual or expected variation in claims costs or actual

or expected variation in health status of the employees of the small employer and

their dependents;

b. The provisions of the health benefit plan concerning the small employer carrier's

right to change premium rates and factors, other than claim experience, that

affect changes in premium rates;

c. The provisions relating to renewability of policies and contracts; and

d. The provisions relating to any pre-existing condition exclusion.

6. a. Each small employer carrier shall maintain at its principal place of business a

complete and detailed description of its rating practices and renewal underwriting

practices, including information and documentation that demonstrate that its

rating methods and practices are based upon commonly accepted actuarial

assumptions and are in accordance with sound actuarial principles.

b. Each small employer carrier shall file with the commissioner on or before March

fifteenth of each year an actuarial certification certifying that the carrier is in

compliance with this chapter and that the rating methods of the small employer

carrier are actuarially sound. The certification must be in a form and manner and

contain information specified by the commissioner. The small employer carrier

shall retain a copy of the certification at the carrier's principal place of business.

c. A small employer carrier shall make the information and documentation described

in subdivision a available to the commissioner upon request. Except in cases of

violations of this chapter and section 26.1-36-37.2, the information is proprietary

and trade secret information and is not subject to disclosure by the commissioner

to persons outside the department except as agreed to by the small employer

carrier or as ordered by a court of competent jurisdiction.
N.D. Cent. Code § 26.1-36.1-07 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-07
26.1-36.1-07. Filing requirements for advertising
Status: in_force

26.1-36.1-07. Filing requirements for advertising

Every insurer, health care service plan, or other entity providing Medicare supplement

insurance or benefits in this state shall provide a copy of any Medicare supplement

advertisement within ten days after its first use in this state whether through written, radio, or

television medium for review or approval by the commissioner to the extent required or

authorized by state law.
N.D. Cent. Code § 26.1-12.2-03 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-03
26.1-12.2-03. Required provisions of plan of conversion
Status: in_force

26.1-12.2-03. Required provisions of plan of conversion

1. The following provisions must be included in the plan of conversion:

a. The reasons for proposed conversion.

b. The effect of conversion on existing policies, including all of the following:

(1) A provision that all policies in force on the effective date of conversion

continue to remain in force under the terms of the policies, except that the

following rights, to the extent the rights existed in the converting mutual

company, must be extinguished on the effective date of the conversion:

(a) Any voting rights of the policyholders provided under the policies.

(b) Except as provided under paragraph 2, any right to share in the

surplus of the converting mutual company, unless such right is

expressly provided for under the provisions of the existing policy.

(c) Any assessment provisions provided for under certain types of

policies.

(2) A provision that holders of participating policies in effect on the date of

conversion continue to have a right to receive dividends as provided in the

participating policies, if any.

c. The grant of subscription rights to eligible members.

(1) For purposes of any plan, the transfer of subscription rights from any of the

following may not be deemed an unpermitted transfer for purposes of this

chapter:

(a) An individual to such individual and the individual's spouse or children

or to a trust or other estate or wealth planning entity established for

the benefit of such individual or the individual's spouse or children;

(b) An individual to such individual's individual or joint individual

retirement account or other tax-qualified retirement plan;

(c) An entity to the shareholders, partners, or members of such entity; or

(d) The holder of such rights back to the converting mutual company, its

proposed subsidiary holding company, or an unaffiliated corporation or

entity that will purchase the stock of the converted stock company as

provided in item 3 of subparagraph a of paragraph 2 of subdivision c

of subsection 1.

(2) The grant of subscription rights to eligible members must include:

(a) A provision that each eligible member is to receive, without payment,

nontransferable subscription rights to purchase the capital stock of the

converted stock company and that, in the aggregate, all eligible

members have the right, before the right of any other party, to

purchase one hundred percent of the capital stock of the converted

stock company, exclusive of any shares of capital stock required to be

sold or distributed to the holders of surplus notes, if any, and any

capital stock purchased by the company's tax-qualified employee

stock benefit plan which is in excess of the pro forma market value of

the capital stock established under subsection 4, as permitted by

subsection 3 of section 26.1-12.2-04. As an alternative to subscription

rights in the converting mutual company, the plan of conversion may

provide each eligible member is to receive, without payment,

nontransferable subscription rights to purchase a portion of the capital

stock of one of the following:

[1] A corporation or entity organized for the purpose of becoming a

holding company for the converted stock company;

[2] A stock insurance company owned by the mutual company into

which the mutual company will be merged; or

[3] An unaffiliated stock insurer or other corporation or entity that will

purchase the stock of the converted stock company.

(b) A provision that subscription rights must be allocated in whole shares

among the eligible members using a fair and equitable formula. The

formula need not allocate subscription rights to eligible members on a

pro rata basis based on premium payments or contributions to

surplus, but may take into account how the different classes of policies

of the eligible members contributed to the surplus of the mutual

company or any other factors that may be fair or equitable. Allocation

of subscription rights on a per capita basis are entitled to a

presumption that such method is fair, subject to a rebuttal of fairness

by clear and convincing evidence. In accordance with subsection 5 of

section 26.1-12.2-02, the commissioner may retain an independent

consultant to assist in the determination that the allocation of

subscription rights is fair and equitable.

2. The plan must provide a fair and equitable means for allocating shares of capital stock

in the event of an oversubscription to shares by eligible members exercising

subscription rights received under subdivision c of subsection 1.

3. The plan must provide any shares of capital stock not subscribed to by eligible

members exercising subscription rights received under subdivision c of subsection 1 or

any other individuals or entities granted subscription rights pursuant to section

26.1-12.2-04 must be sold:

a. In a public offering; however, if the number of shares of capital stock not

subscribed by eligible members is so small in number or other factors exist that

do not warrant the time or expense of a public offering, the plan of conversion

may provide for sale of the unsubscribed shares through a private placement or

other alternative method approved by the commissioner which is fair and

equitable to eligible members; or

b. To a standby investor or to another corporation or entity that is participating in the

plan of conversion, as provided in paragraph 2 of subdivision c of subsection 1.

4. The plan must provide for the preparation of a valuation by a qualified independent

expert which establishes the dollar value of the capital stock for which subscription

rights must be granted pursuant to subdivision c of subsection 1 which must be equal

to the estimated pro forma market value of the converted stock company. The qualified

independent expert may, to the extent feasible, determine the pro forma market value

by reference to a peer group of stock companies and the application of generally

accepted valuation techniques; state the pro forma market value of the converted

stock company as a range of value; and establish the value as the value estimated to

be necessary to attract full subscription for the shares.

5. The dollar value of a subscription right based upon the application of the

Black-Scholes option pricing model or another generally accepted option pricing

model. In connection with the determination of stock price volatility or other valuation

inputs used in option pricing models, the qualified independent expert may assume

that the attributes of the converted stock company will be substantially similar to the

attributes of the stock of the peer companies used to determine the estimated pro

forma market value of the converted stock company. The term of a subscription right is

a minimum of ninety days for the sole purpose of determining the value of a

subscription right.

6. The plan must provide that each eligible member has the right to require the mutual

company to redeem such subscription rights, in lieu of exercising the subscription

rights allocated to each eligible member, at a price equal to the number of subscription

rights allocated to each eligible member multiplied by the dollar value of the

subscription right as determined by the qualified independent expert pursuant to

subsection 4. The obligation of the mutual company to redeem subscription rights

arises only upon the effective date of the plan. The redemption price payable to each

eligible member must be paid to the member within thirty days of the effective date of

the plan. Alternatively, the converted stock company may offer each eligible member

the option of receiving the redemption amount in cash or having the redemption

amount credited against future premium payments. An eligible member that does not

exercise the member's subscription rights, and which also fails to affirmatively request

redemption of the member's subscription rights before the expiration of the

subscription offering, nevertheless is deemed to have requested redemption of the

member's subscription rights and shall receive the redemption amount in cash in the

manner otherwise provided in this subsection.

7. The plan must set the purchase price per share of capital stock equal to any

reasonable amount. However, the minimum subscription amount required of any

eligible member may not exceed five hundred dollars, but the plan may provide that

the minimum number of shares any person may purchase pursuant to the plan is

twenty-five shares. The purchase price per share at which capital stock is offered to

persons that are not eligible members may be greater than but not less than the

purchase price per share at which capital stock is offered to eligible members.

8. The plan must provide that any person or group of persons acting in concert may not

acquire, in the public offering or pursuant to the exercise of subscription rights, more

than five percent of the capital stock of the converted stock company or the stock of

another corporation that is participating in the plan of conversion, as provided in item 3

of subparagraph a of paragraph 2 of subdivision c of subsection 1, except with the

approval of the commissioner. This limitation does not apply to any entity that is to

purchase one hundred percent of the capital stock of the converted stock company as

part of the plan of conversion approved by the commissioner or to any person that acts

as a standby investor for the capital stock of the converted stock company for an

amount equal to ten percent or more of the capital stock of the converted stock

company, if in each case such purchase is approved by the commissioner in

accordance with the provisions of North Dakota law following the filing of an

acquisition of control statement under section 26.1-10-03.

9. The plan must provide that a director or officer or person acting in concert with a

director or officer of the mutual company may not acquire any capital stock of the

converted stock company or the stock of another corporation that is participating in the

plan of conversion, as provided in item 3 of subparagraph a of paragraph 2 of

subdivision c of subsection 1, for three years after the effective date of the plan of

conversion, except through a broker-dealer, without the permission of the

commissioner. This provision does not prohibit the directors and officers from:

a. Making block purchases of one percent or more of the outstanding common stock

other than through a broker-dealer if approved in writing by the insurance

department;

b. Exercising subscription rights received under the plan; or

c. Participating in a stock benefit plan permitted by subsection 3 of section

26.1-12.2-04 or approved by shareholders pursuant to subsection 2 of section

26.1-12.2-11.

10. The plan must provide that a director or officer may not sell stock purchased pursuant

to this section or subsection 1 of section 26.1-12.2-04 within one year after the

effective date of the conversion, except that nothing contained in this section may be

deemed to restrict a transfer of stock by such director or officer if the stock is the stock

of an unaffiliated corporation that is participating in the plan of conversion as provided

in item 3 of subparagraph a of paragraph 2 of subdivision c of subsection 1 and has a

class of stock registered under the federal Securities Exchange Act of 1934 [15 U.S.C.

78a et seq.], or if the transfer is to the spouse or minor children of such director or

officer, or to a trust or other estate or wealth planning entity established for the benefit

of such director or officer, or the spouse or minor children of such director or officer.

11. The plan of conversion must provide the rights, if any, of a holder of a surplus note to

participate in the conversion are governed by the terms of the surplus note.

12. The plan of conversion must provide that without the prior approval of the

commissioner, for a period of two years from the date of the completion of the

conversion, a converted stock company or any corporation participating in the plan of

conversion pursuant to item 1 of subparagraph a of paragraph 2 of subdivision c of

subsection 1 or item 2 of subparagraph a of paragraph 2 of subdivision c of

subsection 1, may not repurchase any of its capital stock from any person. However,

this restriction does not apply to a:

a. Repurchase on a pro rata basis pursuant to an offer made to all shareholders of

the converted stock company or any corporation participating in the plan of

conversion pursuant to, or item 1 of subparagraph a of paragraph 2 of

subdivision c of subsection 1, or item 2 of subparagraph a of paragraph 2 of

subdivision c of subsection 1; or

b. Purchase in the open market by a tax-qualified or nontax-qualified employee

stock benefit plan in an amount reasonable and appropriate to fund the plan.
N.D. Cent. Code § 26.1-16-15 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-15
26.1-16-15. Preliminary applications required before issuance of certificate of authority - Bank certificate - Issuance of certificate of authority
Status: in_force

26.1-16-15. Preliminary applications required before issuance of certificate of

authority - Bank certificate - Issuance of certificate of authority.

Before a benevolent society may issue a certificate of membership, it must have actual

applications for certificates from at least three hundred persons upon which certificates may be

issued simultaneously. The applications, together with a certificate from a solvent bank stating

that there has been deposited to the account of the society an amount which is determined by

the preliminary applications presented as constituting the entire proceeds of membership fees

collected, must be submitted to the commissioner. Upon submission to the commissioner of the

preliminary applications, the bank certificate, and any evidence of compliance with this chapter

which the commissioner requires, the commissioner may issue to the society a certificate of

authority to expire on the thirtieth day of April following the date thereof.
N.D. Cent. Code § 26.1-27.1-05 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-05
26.1-27.1-05. Contents of pharmacy benefits management agreement - Requirements
Status: in_force

26.1-27.1-05. Contents of pharmacy benefits management agreement - Requirements

1. A pharmacy benefits manager shall offer to a covered entity options for the covered

entity to contract for services that must include:

a. A transaction fee without a sharing of a payment received by the pharmacy

benefits manager;

b. A combination of a transaction fee and a sharing of a payment received by the

pharmacy benefits manager; or

c. A transaction fee based on the covered entity receiving all the benefits of a

payment received by the pharmacy benefits manager.

2. The agreement between the pharmacy benefits manager and the covered entity must

include a provision allowing the covered entity to have audited the pharmacy benefits

manager's books, accounts, and records, including de-identified utilization information,

as necessary to confirm that the benefit of a payment received by the pharmacy

benefits manager is being shared as required by the contract.
N.D. Cent. Code § 26.1-03.1-03 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-03
26.1-03.1-03. Company action level event
Status: in_force

26.1-03.1-03. 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 an insurer which indicates that:

(1) The insurer'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;

(2) If a life or health insurer or a fraternal benefit society, the insurer 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 has a negative trend; or

(3) If a property and casualty insurer, the insurer has total adjusted capital

which 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 property and casualty risk-based capital

instructions;

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

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

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

or

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

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

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

the insurer's challenge.

2. In the event of a company action level event, the insurer shall prepare and submit to

the commissioner a risk-based capital plan that must:

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

b. Contain proposals of corrective actions that the insurer intends to take and would

be expected to result in the elimination of the company action level event;

c. Provide projections of the insurer's financial results in the current year and at

least the four succeeding years, both in the absence of proposed corrective

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

of statutory operating income, net income, capital, and surplus. 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. Identify the key assumptions impacting the insurer's projections and the

sensitivity of the projections to the assumptions; and

e. Identify the quality of, and problems associated with, the insurer'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 insurer challenges an adjusted risk-based capital report under section

26.1-03.1-07, within forty-five days after notification to the insurer that, after a

hearing, the commissioner has rejected the insurer's challenge.

4. Within sixty days after the submission by an insurer of a risk-based capital plan to the

commissioner, the commissioner shall notify the insurer whether the risk-based capital

plan may 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 insurer 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 insurer

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 insurer challenges the notification from the commissioner under section

26.1-03.1-07, within forty-five days after a notification to the insurer that, after a

hearing, the commissioner has rejected the insurer's challenge.

5. In the event of a notification by the commissioner to an insurer that the insurer's

risk-based capital plan or revised risk-based capital plan is unsatisfactory, the

commissioner may, subject to the insurer's right to a hearing under section

26.1-03.1-07, specify in the notification that the notification constitutes a regulatory

action level event.

6. Every domestic insurer 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

insurer is authorized to do business if:

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

of section 26.1-03.1-08; and

b. The insurance commissioner of that state has notified the insurer of its request for

the filing in writing, in which case the insurer 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 § 26.1-07-05 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-05
26.1-07-05. Commissioner to hear petition - General duties
Status: repealed

26.1-07-05. Commissioner to hear petition - General duties

Repealed by S.L. 1995, ch. 280, § 5.
N.D. Cent. Code § 26.1-33-18 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-18
26.1-33-18. Nonforfeiture benefits
Status: in_force

26.1-33-18. Nonforfeiture benefits

In the case of policies issued after December 31, 1978, a life insurance policy, except as

stated in section 26.1-33-28, may not be delivered or issued for delivery in this state unless it

contains in substance the following provisions, or corresponding provisions which are at least as

favorable to the defaulting or surrendering policyholder as are the minimum requirements

specified in this section and are essentially in compliance with section 26.1-33-27:

1. In the event of default in any premium payment, the insurer will grant, upon proper

request not later than sixty days after the due date of the premium in default, a paid-up

nonforfeiture benefit on a plan stipulated in the policy, effective as of the due date, of

the amount as may be hereinafter specified. In lieu of the stipulated paid-up

nonforfeiture benefit, the insurer may substitute, upon proper request not later than

sixty days after the due date of the premium in default, an actuarially equivalent

alternative paid-up nonforfeiture benefit that provides a greater amount or longer

period of death benefits or, if applicable, a greater amount or earlier payment of

endowment benefits.

2. Upon surrender of the policy within sixty days after the due date of any premium

payment in default after premiums have been paid for at least three full years in the

case of ordinary insurance or five full years in the case of industrial insurance, the

insurer will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of

the amount as may be hereinafter specified.

3. A specified paid-up nonforfeiture benefit becomes effective as specified in the policy

unless the person entitled to make the election elects another available option not later

than sixty days after the due date of the premium in default.

4. If the policy has become paid up by completion of all premium payments or if it is

continued under any paid-up nonforfeiture benefit which became effective on or after

the third policy anniversary in the case of ordinary insurance or the fifth policy

anniversary in the case of industrial insurance, then the insurer will pay, upon

surrender of the policy within thirty days after any policy anniversary, a cash surrender

value of the amount as may be hereinafter specified.

5. In the case of policies which cause on a basis guaranteed in the policy unscheduled

changes in benefits or premiums, or which provide an option for changes in benefits or

premiums other than a change to a new policy, a statement of the mortality table,

interest rate, and method used in calculating cash surrender values and the paid-up

nonforfeiture benefits available under the policy. In the case of all other policies, a

statement of the mortality table and interest rate or rates used in calculating the cash

surrender values and the paid-up nonforfeiture benefits available under the policy,

together with a table showing the cash surrender value, if any, and paid-up

nonforfeiture benefit, if any, available under the policy on each policy anniversary

either during the first twenty policy years or during the term of the policy, whichever is

shorter, such values and benefits to be calculated upon the assumption that there are

no dividends or paid-up additions credited to the policy and that there is no

indebtedness to the insurer on the policy.

6. A statement that the cash surrender values and the paid-up nonforfeiture benefits

available under the policy are not less than the minimum values and benefits required

by or pursuant to the insurance law of the state in which the policy is delivered. An

explanation of the manner in which the cash surrender values and the paid-up

nonforfeiture benefits are altered by the existence of any paid-up additions credited to

the policy or any indebtedness to the insurer on the policy. If a detailed statement of

the method of computation of the values and benefits shown in the policy is not stated

in the policy, a statement that the method of computation has been filed with the

commissioner. A statement of the method to be used in calculating the cash surrender

value and paid-up nonforfeiture benefit available under the policy on any policy

anniversary beyond the last anniversary for which such values and benefits are

consecutively shown in the policy.

Any of the foregoing provisions or portions thereof not applicable by reason of the plan of

insurance may, to the extent inapplicable, be omitted from the policy.

The insurer shall reserve the right to defer the payment of any cash surrender value for a

period of six months after demand therefor with surrender of the policy.
N.D. Cent. Code § 26.1-21-07 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-07
26.1-21-07. Coverage - Assessments - Minimum
Status: in_force

26.1-21-07. Coverage - Assessments - Minimum

1. The amount of coverage afforded to each state agency or political subdivision must be

determined by the office based upon the amount of money or property handled and

the opportunity for defalcation. Except as otherwise required by law, the minimum

amount of coverage must equal the amount of money or property actually handled or

ten thousand dollars, whichever is less.

2. The coverage for a state legislative or judicial branch agency may be determined by

the legislative council or supreme court, respectively.

3. Notwithstanding any other provision of law, the office may issue bonds to carry out the

purposes of the fund. In determining the amount of coverage to be offered, the office

may consider the reserves necessary to pay the bonds and for all other necessary

costs or expenses to carry out the purposes of the fund.

4. The office shall determine the amount of the bond assessment. The minimum

assessment is two dollars and fifty cents per public employee per year. Each state

agency and political subdivision shall pay the assessment in advance, and the

assessments collected must be deposited in the fund unless the assessment is waived

in accordance with section 26.1-21-02.
N.D. Cent. Code § 26.1-17.1-05 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-05
26.1-17.1-05. Effect on organizations operating on effective date of this chapter
Status: in_force

26.1-17.1-05. Effect on organizations operating on effective date of this chapter

Within ninety days after August 1, 1993, every prepaid limited health service organization

operating in this state without a certificate of authority shall submit an application for a certificate

of authority to the commissioner. Each such organization may continue to operate during the

pendency of its application. In the event an application is denied under this section, the

applicant will then be treated as a prepaid limited health service organization whose certificate

of authority has been revoked.
N.D. Cent. Code § 26.1-36-50 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-50
26.1-36-50. Dental insurance - Assignment
Status: in_force

26.1-36-50. Dental insurance - Assignment

An individual or group insurance policy covering dental services may not be issued or

renewed unless the policy authorizes the insured or beneficiary to assign reimbursement for

health or dental care services directly to the provider of services. Under this assignment, the

insurer, if authorized by the insured or beneficiary, shall pay directly to the provider the amount

of the claim under the same criteria and payment schedule as would have been reimbursed

directly to the insured.
N.D. Cent. Code § 26.1-36.7-11 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-11
26.1-36.7-11. Third-party reinsurance
Status: in_force

26.1-36.7-11. Third-party reinsurance

The association may use federal funding received under section 1332 of the federal Patient

Protection and Affordable Care Act [Pub. L. 111-148; 119 Stat. 124; 42 U.S.C. 1801 et seq.] to

procure third-party reinsurance for the association's portion of eligible claims.
N.D. Cent. Code § 26.1-02.1-09 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-09
26.1-02.1-09. Peace officer status
Status: in_force

26.1-02.1-09. Peace officer status

A fraud unit investigator has all the powers conferred by law upon any peace officer of this

state when making arrests for criminal violations established as a result of an investigation

pursuant to this chapter. The general laws applicable to arrests by a peace officer of the state

also apply to a fraud unit investigator. A fraud unit investigator may execute an arrest warrant

and search warrant for the same criminal violation; serve subpoenas issued for the examination,

investigation, and trial of all offenses identified through an investigation; and arrest upon

probable cause without warrant a person found in the act of committing a violation of the

provisions of this chapter.
N.D. Cent. Code § 26.1-19-06 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-06
26.1-19-06. Issuance of a certificate of authority
Status: in_force

26.1-19-06. Issuance of a certificate of authority

The commissioner shall issue a certificate of authority to any person filing an application

within sixty days after the filing unless the commissioner notifies the applicant during that time

that the application is not complete or sufficient and the reasons therefor, that payment of the

fees required by section 26.1-19-15 has not been made, or that the commissioner is not

satisfied that:

1. The basic organizational documents of the applicant, when combined with the powers

enumerated in section 26.1-19-07, permit the applicant to conduct business as a legal

services organization.

2. The organization has demonstrated the intent and ability to provide the services in a

manner which ensures their availability and accessibility.

3. The organization is financially responsible and may be reasonably expected to meet

its obligations to its enrolled participants. In making this determination the

commissioner shall consider:

a. Any agreement with an insurer or any other organization paying, contracting to

pay for, or in any way guaranteeing the provision of legal services under the plan.

b. Any agreement with the providers for the furnishing of legal services under the

plan.

c. The adequacy of working capital.

d. Any surety bond or deposit of cash or securities as a guaranty that plan services

will be performed.
N.D. Cent. Code § 26.1-03-19.3 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.3
26.1-03-19.3. Conduct of examinations
Status: in_force

26.1-03-19.3. Conduct of examinations

1. Upon determining that an examination should be conducted, the commissioner or the

commissioner's designee shall issue a letter appointing one or more examiners to

perform the examination and instructing them as to the scope of the examination. In

conducting the examination, the examiner shall observe those guidelines and

procedures set forth in the examiners' handbook adopted by the national association

of insurance commissioners. The commissioner may also employ other guidelines or

procedures as the commissioner may deem appropriate.

2. For the purposes of making any examination required or authorized by law, every

company or person from whom information is sought, its officers, directors, trustees,

and agents must provide to the examiners appointed under subsection 1, in any

examination required or authorized by law, timely, convenient, and free access at all

reasonable hours at its offices to all books, records, accounts, papers, documents, and

any or all computer or other recordings relating to the property, assets, business, and

affairs of the company being examined. The officers, directors, employees, trustees,

and agents of the company or person must facilitate the examination and aid in the

examination so far as it is in their power to do so. The refusal of any company, by its

officers, directors, employees, trustees, or agents to submit to examination or to

comply with any reasonable request of the examiners is grounds for suspension or

refusal of, or nonrenewal of, any license or authority held by the company to engage in

an insurance or other business subject to the commissioner's jurisdiction. Any

proceedings for suspension, revocation, or refusal of any license or authority must be

conducted pursuant to sections 26.1-01-03.1 and 26.1-11-09.

3. The commissioner or any of the commissioner's examiners have the power to issue

subpoenas, to administer oaths, and to examine under oath any person as to any

matter pertinent to the examination. Upon the failure or refusal of any person to obey a

subpoena, the commissioner may petition a court of competent jurisdiction, and upon

proper showing, the court may enter an order compelling the witness to appear and

testify or produce documentary evidence. Failure to obey the court order is punishable

as contempt of court.

4. Qualified regular employees of the commissioner, or the commissioner's designated

representatives acting as independent contract examiners under the direction of

regular employees of the commissioner, shall conduct all examinations of an insurance

company required or permitted by law to be conducted by the commissioner, whether

or not the examinations are convention examinations called in accordance with rules

promulgated by the national association of insurance commissioners. The

commissioner may contract for and procure the services of financial and market

conduct examiners and other or additional specialized technical or professional

assistants, as independent contractors. None of the persons providing those services

or assistance on a contract or fee basis may be in the classified service of the state.

5. Nothing contained in this chapter may be construed to limit the commissioner's

authority to terminate or suspend any examination in order to pursue other legal or

regulatory action pursuant to the insurance laws of this state. Findings of fact and

conclusions made pursuant to any examination will be prima facie evidence in any

legal or regulatory action by and before the insurance commissioner.

6. Except as provided in subsections 5 and 6 of section 26.1-03-19.4, nothing contained

in this chapter may be construed to limit the commissioner's authority to use and, if

appropriate, to make public any final or preliminary examination report, any examiner

or company workpapers or other documents, or any other information discovered or

developed during the course of any examination in the furtherance of any legal or

regulatory action which the commissioner may, in the commissioner's sole discretion,

deem appropriate.
N.D. Cent. Code § 26.1-18.1-03 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-03
26.1-18.1-03. Issuance of certificate of authority
Status: in_force

26.1-18.1-03. Issuance of certificate of authority

1. Upon receipt of an application for issuance of a certificate of authority, the

commissioner shall issue a certificate of authority to any person filing a completed

application upon receiving the prescribed fees and upon the commissioner being

satisfied that:

a. The persons responsible for the conduct of the affairs of the applicant are

competent, trustworthy, and possess good reputations.

b. The health maintenance organization's proposed plan of operation meets the

requirements of section 26.1-18.1-06.

c. The health maintenance organization will effectively provide or arrange for the

provision of basic health care services on a prepaid basis, through insurance or

otherwise, except to the extent of reasonable requirements for copayments or

deductibles.

d. The health maintenance organization is in compliance with sections 26.1-18.1-12

and 26.1-18.1-14.

2. A certificate of authority may be denied only after the commissioner complies with the

requirements of section 26.1-18.1-19.
N.D. Cent. Code § 26.1-30-05 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-05
26.1-30-05. Policy may provide for benefit to any owner
Status: in_force

26.1-30-05. Policy may provide for benefit to any owner

An insurance policy may be written so it will inure to the benefit of whomever, during the

continuance of the risk, may become the owner of the interest insured.
N.D. Cent. Code § 26.1-36-36 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-36
26.1-36-36. Medicare supplement policies - Notice of free examination
Status: repealed

26.1-36-36. Medicare supplement policies - Notice of free examination

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-02-02 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-02
26.1-02-02. Duty of commissioner before granting or renewing certificate of authority
Status: in_force

26.1-02-02. Duty of commissioner before granting or renewing certificate of authority

The commissioner must be satisfied by examination and evidence that an insurance

company is legally qualified to transact business in this state before granting a certificate of

authority to the company to issue policies or make insurance contracts. A certificate of authority

issued under this title remains in force in perpetuity if the required renewal fee is paid by April

thirtieth of each year and the commissioner is satisfied that the statements and evidences of

investment required of the company have been furnished, the required capital or surplus or

both, securities, and investments remain secure, and all other requirements of law are met. Any

company which neglects to pay the renewal fee by April thirtieth forfeits twenty-five dollars for

each day's neglect.
N.D. Cent. Code § 26.1-31.2-02 — ND Code / Title 26.1 / Chapter 26.1-31.2 / Section 26.1-31.2-02
26.1-31.2-02. Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 26.1-31.2-01
Status: in_force

26.1-31.2-02. Asset or reduction from liability for reinsurance ceded by a domestic

insurer to an assuming insurer not meeting the requirements of section 26.1-31.2-01.

An asset or reduction from liability for the reinsurance ceded by a domestic insurer to an

assuming insurer not meeting the requirements of section 26.1-31.2-01 must be allowed in an

amount not exceeding the liabilities carried by the ceding insurer. The reduction must be in the

amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the

ceding insurer, under a reinsurance contract with the assuming insurer as security for the

payment of obligations thereunder, if the security is held in the United States subject to

withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a

trust, held in a qualified United States financial institution, as defined in subsection 2 of section
N.D. Cent. Code § 26.1-36.6-04 — ND Code / Title 26.1 / Chapter 26.1-36.6 / Section 26.1-36.6-04
26.1-36.6-04. Rules
Status: in_force

26.1-36.6-04. Rules

The commissioner shall adopt rules to administer this chapter. The rules must establish

reserve requirements. The rules may provide certain self-insurance health plans are exempt

from all or portions of this chapter.
N.D. Cent. Code § 26.1-26-34 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-34
26.1-26-34. Notification to commissioner of termination
Status: in_force

26.1-26-34. Notification to commissioner of termination

1. Termination for cause. An insurer or authorized representative of the insurer that

terminates the appointment, employment, contract, or other insurance business

relationship with an insurance producer shall notify the commissioner within thirty days

following the effective date of the termination, using a format prescribed by the

commissioner, if the reason for termination is one of the reasons set forth in section

26.1-26-42 or the insurer has knowledge the insurance producer was found by a court,

government body, or self-regulatory organization authorized by law to have engaged in

any of the activities in section 26.1-26-42. Upon the written request of the

commissioner, the insurer shall provide additional information, documents, records, or

other data pertaining to the termination or activity of the insurance producer.

2. Termination without cause. An insurer or authorized representative of the insurer that

terminates the appointment, employment, or contract with an insurance producer for

any reason not set forth in section 26.1-26-42 shall notify the commissioner within

thirty days following the effective date of the termination, using a format prescribed by

the commissioner. Upon written request of the commissioner, the insurer shall provide

additional information, documents, records, or other data pertaining to the termination.

3. Ongoing notification requirement. The insurer or the authorized representative of the

insurer shall promptly notify the commissioner in a format acceptable to the

commissioner if, upon further review or investigation, the insurer discovers additional

information that would have been reportable to the commissioner in accordance with

subsection 1 had the insurer then known of the information's existence.

4. Copy of notification to be provided to insurance producer.

a. Within fifteen days after making the notification required by subsections 1, 2, and

3, the insurer shall mail a copy of the notification to the insurance producer at the

insurance producer's last-known address. If the insurance producer is terminated

for cause for any of the reasons listed in section 26.1-26-42, the insurer shall

provide a copy of the notification to the insurance producer at the insurance

producer's last-known address by certified mail, return receipt requested, postage

prepaid or by overnight delivery using a nationally recognized carrier.

b. Within thirty days after the insurance producer has received the original or

additional notification, the insurance producer may file written comments

concerning the substance of the notification with the commissioner. The

insurance producer shall, by the same means, simultaneously send a copy of the

comments to the reporting insurer, and the comments become a part of the

commissioner's file and must accompany every copy of a report distributed or

disclosed for any reason about the insurance producer as permitted under

subsection 6.

5. Immunities.

a. In the absence of actual malice, an insurer, the authorized representative of the

insurer, an insurance producer, the commissioner, or an organization of which the

commissioner is a member and that compiles the information and makes it

available to other insurance commissioners or regulatory or law enforcement

agencies is not subject to civil liability, and a civil cause of action of any nature

does not arise against these entities or their respective agents or employees, as

a result of any statement or information required by or provided pursuant to this

section or any information relating to any statement that may be requested in

writing by the commissioner, from an insurer or insurance producer; or a

statement by a terminating insurer or insurance producer to an insurer or

insurance producer limited solely and exclusively to whether a termination for

cause under subsection 1 was reported to the commissioner, provided that the

propriety of any termination for cause under subsection 1 is certified in writing by

an officer or authorized representative of the insurer or insurance producer

terminating the relationship.

b. In any action brought against a person who may have immunity under

subdivision a for making any statement required by this section or providing any

information relating to any statement that may be requested by the commissioner,

the party bringing the action shall plead specifically in any allegation that

subdivision a does not apply because the person making the statement or

providing the information did so with actual malice.

c. Subdivision a or b does not abrogate or modify any existing statutory or

common-law privileges or immunities.

6. Confidentiality.

a. Any documents, materials, or other information in the control or possession of the

insurance department that is furnished by an insurer, insurance producer, or an

employee or agent thereof acting on behalf of the insurer or insurance producer,

or obtained by the commissioner, in an investigation pursuant to this section is

confidential and privileged, 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 duties.

b. Neither the commissioner nor any person who receives documents, materials, or

other information while acting under the authority of the commissioner may be

permitted or required to testify in any private civil action concerning any

confidential documents, materials, or information subject to subdivision a.

c. In order to assist in the performance of the commissioner's duties under this

chapter, the commissioner:

(1) May share documents, materials, or other information, including the

confidential and privileged documents, materials, or information subject to

subdivision a, with other state, federal, and international regulatory

agencies, with the national association of insurance commissioners, its

affiliates or subsidiaries, and with state, federal, and international law

enforcement authorities, provided that the recipient agrees to maintain the

confidentiality and privileged status of the document, material, or other

information;

(2) May receive documents, materials, or information, including otherwise

confidential and privileged documents, materials, or information from the

national association of insurance commissioners, its affiliates or

subsidiaries, and from regulatory and law enforcement officials of other

foreign or domestic jurisdictions, and shall maintain as confidential or

privileged any document, material, or information received with notice or the

understanding that it is confidential or privileged under the laws of the

jurisdiction that is the source of the document, material, or information; and

(3) May enter into agreements governing sharing and use of information

consistent with this subsection.

(4) A privilege or claim of confidentiality in the documents, materials, or

information shall not be waived as a result of disclosure to the commissioner

under this section or as a result of sharing as authorized in paragraph 3.

(5) Nothing in this chapter prohibits the commissioner from releasing final,

adjudicated actions, including for-cause terminations that are open to public

inspection to a database or other clearinghouse service maintained by the

national association of insurance commissioners, its affiliates, or

subsidiaries of the national association of insurance commissioners.

7. Penalties for failing to report. An insurer, the authorized representative of the insurer,

or insurance producer that fails to report as required under the provisions of this

section or that is found to have reported with actual malice by a court of competent

jurisdiction may, after notice and hearing, have its license or certificate of authority

suspended or revoked and may be fined in accordance with sections 26.1-26-42,

26.1-26-43, and 26.1-26-50.
N.D. Cent. Code § 26.1-12-11.1 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-11.1
26.1-12-11.1. Authority to define products
Status: in_force

26.1-12-11.1. Authority to define products

The product types found under each of the above lines of insurance are those adopted

pursuant to section 26.1-05-02.1.
N.D. Cent. Code § 26.1-26.4-04 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-04
26.1-26.4-04. Minimum standards of utilization review agents
Status: in_force

26.1-26.4-04. Minimum standards of utilization review agents

All utilization review agents must meet the following minimum standards:

1. Notification of a determination by the utilization review agent must be provided to the

enrollee or other appropriate individual in accordance with 29 U.S.C. 1133 and the

timeframes set forth in 29 CFR 2560.503-1.

2. Any determination by a utilization review agent as to the necessity or appropriateness

of an admission, service, or procedure must be reviewed by a physician or, if

appropriate, a licensed psychologist, or determined in accordance with standards or

guidelines approved by a physician or licensed psychologist.

3. Any notification of a determination not to certify an admission or service or procedure

must include the information required by 29 U.S.C. 1133 and 29 CFR 2560.503-1.

4. Utilization review agents shall maintain and make available a written description of the

appeal procedure by which enrollees or the provider of record may seek review of

determinations by the utilization review agent. The appeal procedure must provide for

the following:

a. On appeal, all determinations not to certify an admission, service, or procedure

as being necessary or appropriate must be made by a physician or, if appropriate,

a licensed psychologist.

b. Utilization review agents shall complete the adjudication of appeals of

determinations not to certify admissions, services, and procedures in accordance

with 29 U.S.C. 1133 and the timeframes for appeals set forth in 29 CFR

2560.503-1.

c. Utilization review agents shall provide for an expedited appeals process

complying with 29 U.S.C. 1133 and 29 CFR 2560.503-1.

5. Utilization review agents shall make staff available by toll-free telephone at least forty

hours per week during normal business hours.

6. Utilization review agents shall have a telephone system capable of accepting or

recording incoming telephone calls during other than normal business hours and shall

respond to these calls within two working days.

7. Utilization review agents shall comply with all applicable laws to protect confidentiality

of individual medical records.

8. Psychologists making utilization review determinations shall have current licenses

from the state board of psychologist examiners. Physicians making utilization review

determinations shall have current licenses from the North Dakota board of medicine.

9. When conducting utilization review or making a benefit determination for emergency

services:

a. A utilization review agent may not deny coverage for emergency services and

may not require prior authorization of these services.

b. Coverage of emergency services is subject to applicable copayments,

coinsurance, and deductibles.

10. When an initial appeal to reverse a determination is unsuccessful, a subsequent

determination regarding hospital, medical, or other health care services provided or to

be provided to a patient which may result in a denial of third-party reimbursement or a

denial of precertification for that service must include the evaluation, findings, and

concurrence of a physician trained in the relevant specialty to make a final

determination that care provided or to be provided was, is, or may be medically

inappropriate.

However, the commissioner may find that the standards in this section have been met if the

utilization review agent has received approval or accreditation by a utilization review

accreditation organization.
N.D. Cent. Code § 26.1-26-35 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-35
26.1-26-35. Duties of consultant - Agreements
Status: in_force

26.1-26-35. Duties of consultant - Agreements

An insurance consultant shall serve with objectivity and complete loyalty the interests of the

consultant's client alone and to render the client such information, counsel, and service as

within the knowledge, understanding, and opinion, in good faith of the licensee, best serves the

client's insurance needs and interests. Before rendering services as an insurance consultant, an

insurance consultant shall prepare a written agreement on a form approved by the

commissioner. The agreement must outline the nature of the work to be performed by the

consultant and must state the fee for the work. The consultant and the client shall sign the

agreement. The consultant shall retain a copy of the agreement for not less than two years after

completion of the services. This copy must be available to the commissioner.
N.D. Cent. Code § 26.1-13-25 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-25
26.1-13-25. Permanent expense and loss fund - Assessment or premiums - Delinquent loss assessments credited
Status: repealed

26.1-13-25. Permanent expense and loss fund - Assessment or premiums -

Delinquent loss assessments credited.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-03-19 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19
26.1-03-19. Examination of companies - Times - Expense
Status: repealed

26.1-03-19. Examination of companies - Times - Expense

Repealed by S.L. 1993, ch. 292, § 49.
N.D. Cent. Code § 26.1-09-09 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-09
26.1-09-09. Annual report - Publication of annual statement - Examination
Status: in_force

26.1-09-09. Annual report - Publication of annual statement - Examination

The attorney, within the time limited for filing the annual report by insurance companies

transacting the same kind of business, shall make a report to the commissioner for each

calendar year showing the financial condition at the office where the contracts are issued, and

shall furnish any additional information and reports the commissioner requires to show the total

premiums or deposits collected, the total losses paid, the total amounts returned to subscribers,

and the amounts retained for expenses. The attorney may not be required to furnish the names

and addresses of any subscribers. The attorney shall publish an abstract of annual statement as

required by section 26.1-03-10. The business affairs and assets of the attorney are subject to

visitation and examination by the commissioner at the expense of the office examined. If the

principal office of the attorney is located in another state, the commissioner, in lieu of an

examination conducted by the commissioner's office as provided for in this section, may accept

a certified copy of the report of examination made by the insurance office of the state where the

principal office is located or by the insurance department of any other state.
N.D. Cent. Code § 26.1-36.1-06 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-06
26.1-36.1-06. Medicare supplement policies - Notice of free examination
Status: in_force

26.1-36.1-06. Medicare supplement policies - Notice of free examination

Medicare supplement policies or certificates must have a notice prominently printed on or

attached to the first page of the policy stating in substance that the applicant may return the

policy or certificate within thirty days of its delivery and have the premium refunded if, after

examination of the policy or certificate, the applicant is not satisfied for any reason.
N.D. Cent. Code § 26.1-21-10 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-10
26.1-21-10. Automatic insurance of state and political subdivisions
Status: in_force

26.1-21-10. Automatic insurance of state and political subdivisions

1. Each state agency and political subdivision shall apply to be bonded in the fund at

least once per biennium or when a change in coverage is requested, whichever occurs

first. Unless an application is denied within sixty days from the date it is received by

the office, the application will be approved and bond coverage in force. If a bond is in

the discretion of the state agency or political subdivision and a bond is not requested,

the state agency or political subdivision is exempt from this section.

2. The application must include:

a. The requested amount of bond coverage based on the amount of money and

property handled, the opportunity for defalcation, and any other condition

imposed by law;

b. An amount equal to twenty-five percent of the money in control of the public

officials or employees for which the bond is requested for the preceding year

based on the total monthly balances; and

c. Any other information requested by the office to determine the amount of money

and property handled and the opportunity for defalcation, including the procedure

used to determine the amount of bond requested, revenues for the last budget

period by type, expenditures for the last budget period by type, the number of

people that handle money, any portion of the last audit, and any financial

procedures.

3. A blanket bond automatically includes coverage for new employees and new public

officials.
N.D. Cent. Code § 26.1-01-01 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-01
26.1-01-01. Commissioner defined
Status: in_force

26.1-01-01. Commissioner defined

Unless the context or subject matter otherwise requires, in this title the word "commissioner"

means the insurance commissioner.
N.D. Cent. Code § 26.1-06-10 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-10
26.1-06-10. Enforcement - Enjoining violations
Status: in_force

26.1-06-10. Enforcement - Enjoining violations

If at a hearing before the commissioner, the commissioner determines that the offeror has

violated this chapter, or the commissioner's rules administering this chapter, the commissioner

shall issue and cause to be served on the offeror an order requiring the offeror to cease and

desist from the violation and may issue and cause to be served on the offeror an order

preventing the offeror from making any further tender offers, and may take any affirmative action

as will effectuate the policies of this chapter.

The commissioner may petition any district court of this state for the enforcement of the

order and for appropriate temporary relief or restraining order and shall file in the court the

record of the proceedings. Upon the filing of the petition, the court must serve notice upon the

offeror and thereupon has jurisdiction of the proceeding and of the question determined therein

and may grant the temporary relief or restraining order as it deems just and proper, and to make

and enter a decree enforcing, modifying, and enforcing as so modified, or for setting aside in

whole or in part the order. The court must enforce the order unless it finds that the order was not

in accordance with law, that it was in violation of the constitutional rights of the offeror, that the

commissioner's rules or procedure did not afford the offeror a fair hearing, that the

commissioner's findings of fact were not supported by the evidence, or that the order was not

supported by the findings of fact.
N.D. Cent. Code § 26.1-06.1-05 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-05
26.1-06.1-05. Injunctions and orders
Status: in_force

26.1-06.1-05. Injunctions and orders

1. Any receiver appointed in a proceeding under this chapter may at any time apply for,

and any district court may grant, such restraining orders, preliminary and permanent

injunctions, and other orders as may be deemed necessary and proper to prevent:

a. The transaction of further business;

b. The transfer of property;

c. Interference with the receiver or with a proceeding under this chapter;

d. Waste of the insurer's assets;

e. Dissipation and transfer of bank accounts;

f. The institution or further prosecution of any actions or proceedings;

g. The obtaining of preferences, judgments, attachments, garnishments, or liens

against the insurer, its assets, or its policyholders;

h. The levying of execution against the insurer, its assets, or its policyholders;

i. The making of any sale or deed for nonpayment of taxes or assessments that

would lessen the value of the assets of the insurer;

j. The withholding from the receiver of books, accounts, documents, or other

records including all written, printed, computer-stored, visual, and audiovisual

materials relating to the business of the insurer; or

k. Any other threatened or contemplated action that might lessen the value of the

insurer's assets or prejudice the rights of policyholders, creditors, or

shareholders, or the administration of any proceeding under this chapter.

2. The receiver may apply to any court outside of the state for the relief described in

subsection 1.
N.D. Cent. Code § 26.1-36.1-03 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-03
26.1-36.1-03. Rulemaking authority
Status: in_force

26.1-36.1-03. Rulemaking authority

The commissioner may adopt rules to establish standards for benefits, standard policies

and optional benefit riders, claims payments, abusive marketing practices and compensation

arrangements, and reporting practices for Medicare supplement policies.
N.D. Cent. Code § 26.1-51-06 — ND Code / Title 26.1 / Chapter 26.1-51 / Section 26.1-51-06
26.1-51-06. Waiver of privilege by insurer - Grounds for determination of privilege - Civil, administrative, or criminal proceedings
Status: in_force

26.1-51-06. Waiver of privilege by insurer - Grounds for determination of privilege -

Civil, administrative, or criminal proceedings.

1. The self-critical analysis privilege does not apply to the extent that it is expressly

waived by the insurer that prepared or caused to be prepared the insurance

compliance self-critical analysis audit document.

2. In a civil or administrative proceeding, a court of record, after an in-camera review,

may require disclosure of material for which the privilege is asserted, if the court

determines one of the following:

a. The privilege is asserted for a fraudulent purpose; or

b. The material is not subject to the privilege.

3. In a criminal proceeding, a court of record, after an in-camera review, may require

disclosure of material for which the privilege is asserted, if the court determines one of

the following:

a. The privilege is asserted for a fraudulent purpose;

b. The material is not subject to the privilege; or

c. The material contains evidence relevant to commission of a criminal offense, and

all three of the following factors are present:

(1) The commissioner, state's attorney, or attorney general has a compelling

need for the information;

(2) The information is not otherwise available; and

(3) The commissioner, state's attorney, or attorney general is unable to obtain

the substantial equivalent of the information by any other means without

incurring unreasonable cost and delay.
N.D. Cent. Code § 26.1-47-08 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-08
26.1-47-08. Air ambulance subscription agreements - Prohibition
Status: in_force

26.1-47-08. Air ambulance subscription agreements - Prohibition

An air ambulance provider, or an agent of an air ambulance provider, may not sell, solicit, or

negotiate a subscription agreement or contract relating to services or the billing of services

provided by an air ambulance provider. An air ambulance provider, or agent of an air ambulance

provider, which violates this section is subject to a civil fine in an amount not to exceed ten

thousand dollars for each violation. The fine may be collected and recovered in an action

brought in the name of the state.
N.D. Cent. Code § 26.1-36.11-03 — ND Code / Title 26.1 / Chapter 26.1-36.11 / Section 26.1-36.11-03
26.1-36.11-03. Comprehensive medication management advisory committee
Status: in_force

26.1-36.11-03. Comprehensive medication management advisory committee

1. The commissioner shall establish and facilitate an advisory committee to implement

the provisions of this chapter. The advisory committee shall develop best practice

recommendations for the implementation of comprehensive medication management

and on standards to ensure pharmacists are adequately included and appropriately

utilized in participating provider networks of health benefit plans. In developing these

standards, the committee also shall discuss topics as they relate to implementation,

including program quality measures, pharmacist training and credentialing, provider

directories, care coordination, health benefit plan data reporting requirements, billing

standards, and potential cost-savings and cost increases to consumers.

2. The commissioner or the commissioner's designee shall create an advisory

committee, including representatives of the following stakeholders:

a. The commissioner or designee;

b. The state health officer or designee;

c. An organization representing pharmacists;

d. An organization representing physicians;

e. An organization representing hospitals;

f. A community pharmacy with pharmacists providing medical services;

g. The two largest health carriers in the state based upon enrollment;

h. The North Dakota state university school of pharmacy;

i. An employer as a health benefit plan sponsor;

j. An enrollee;

k. An organization representing advanced practice registered nurses; and

l. Other representatives appointed by the insurance commissioner.

3. No later than June 30, 2024, the advisory committee shall present initial best practice

recommendations to the insurance commissioner and the department of health and

human services. The commissioner or department of health and human services may

adopt rules to implement the standards developed by the advisory committee. The

advisory committee shall remain intact to assist the insurance commissioner or

department of health and human services in rulemaking. Upon completion of the

rulemaking process, the committee is dissolved.
N.D. Cent. Code § 26.1-22-06.1 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-06.1
26.1-22-06.1. Replacement cost appraisal required on state-owned property
Status: repealed

26.1-22-06.1. Replacement cost appraisal required on state-owned property

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-26.7-05 — ND Code / Title 26.1 / Chapter 26.1-26.7 / Section 26.1-26.7-05
26.1-26.7-05. Termination of portable electronics insurance
Status: in_force

26.1-26.7-05. Termination of portable electronics insurance

Notwithstanding any other provision of law:

1. An insurer may terminate or otherwise change the terms and conditions of a policy of

portable electronics insurance only upon providing the policyholder and enrolled

customers with at least thirty days notice.

2. If the insurer changes the terms and conditions, the insurer shall provide the vendor

policyholder with a revised policy or endorsement and each enrolled customer with a

revised certificate, endorsement, updated brochure, or other evidence indicating a

change in the terms and conditions has occurred and a summary of material changes.

3. Notwithstanding subsection 1, an insurer may terminate an enrolled customer's

enrollment under a portable electronics insurance policy upon thirty days notice for

discovery of fraud or material misrepresentation in obtaining coverage or in the

presentation of a claim under the policy.

4. Notwithstanding subsection 1, an insurer may terminate an enrolled customer's

enrollment under a portable electronics insurance policy upon ten days notice for

nonpayment of premium.

5. Notwithstanding subsection 1, an insurer immediately may terminate an enrolled

customer's enrollment under a portable electronics insurance policy without prior

notice:

a. If the enrolled customer ceases to have an active service with the vendor of

portable electronic devices; or

b. If an enrolled customer exhausts the aggregate limit of liability, if any, under the

terms of the portable electronics insurance policy and the insurer sends notice of

termination to the enrolled customer within thirty calendar days after exhaustion

of the limit. However, if notice is not timely sent, coverage must continue,

notwithstanding the aggregate limit of liability until the insurer sends notice of

termination to the enrolled customer.

6. If a portable electronics insurance policy is terminated by a policyholder, the

policyholder shall mail or deliver written notice to each enrolled customer advising the

enrolled customer of the termination of the policy and the effective date of termination.

The written notice must be mailed or delivered to the enrolled customer at least thirty

days before the termination.

7. If notice or correspondence with respect to a policy of portable electronics insurance is

required under this section or is otherwise required by law, the notice or

correspondence must be in writing and sent within the notice period, if any, specified

within the statute or regulation requiring the notice or correspondence.

Notwithstanding any other provision of law, notices and correspondence may be sent

by mail or by electronic means as set forth in this subsection. If the notice or

correspondence is mailed, it must be sent to the vendor of portable electronic devices

at the vendor's mailing address specified for this purpose and to the vendor's affected

enrolled customers' last known mailing addresses on file with the insurer. The insurer

or vendor of portable electronic devices, as the case may be, shall maintain proof of

mailing in a form authorized or accepted by the United States postal service or other

commercial mail delivery service. If the notice or correspondence is sent by electronic

means, the notice or correspondence must be sent to the vendor of portable electronic

devices at the vendor's electronic mail address specified for this purpose and to the

vendor's affected enrolled customers' last known electronic mail address as provided

by each enrolled customer to the insurer or vendor of portable electronic devices, as

the case may be. For purposes of this subsection, an enrolled customer's provision of

an electronic mail address to the insurer or vendor of portable electronic devices, as

the case may be, is deemed consent to receive notices and correspondence by

electronic means. The insurer or vendor of portable electronic devices, as the case

may be, shall maintain proof the notice or correspondence was sent.

8. Notice or correspondence required by this section or otherwise required by law may be

sent on behalf of an insurer or vendor, as the case may be, by a business entity that is

a licensed insurance producer and that is appointed by the insurer issuing the portable

electronics insurance policy to assist with the administration of the portable electronics

insurance program.
N.D. Cent. Code § 26.1-06.1-10 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-10
26.1-06.1-10. Confidentiality of hearings
Status: in_force

26.1-06.1-10. Confidentiality of hearings

In all proceedings and judicial reviews thereof under section 26.1-06.1-09, all records of the

insurer, other documents, and all insurance department files and court records and papers, so

far as they pertain to or are a part of the record of the proceedings, must be and remain

confidential except as is necessary to obtain compliance therewith, unless and until the district

court, after hearing arguments from the parties in chambers, orders otherwise or unless the

insurer requests that the matter be made public. Until such court order, all papers filed with the

clerk of the district court must be held by the clerk in a confidential file.
N.D. Cent. Code § 26.1-25-08 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-08
26.1-25-08. Appeal by minority
Status: repealed

26.1-25-08. Appeal by minority

Repealed by S.L. 1991, ch. 302, § 26.
N.D. Cent. Code § 26.1-08-03 — ND Code / Title 26.1 / Chapter 26.1-08 / Section 26.1-08-03
26.1-08-03. Comprehensive health association
Status: repealed

26.1-08-03. Comprehensive health association

Repealed by S.L. 2003, ch. 239, § 18.
N.D. Cent. Code § 26.1-29-20 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-20
26.1-29-20. Information as to interest need not be communicated
Status: in_force

26.1-29-20. Information as to interest need not be communicated

Information of the nature or amount of the interest of one insured need not be

communicated unless in answer to inquiry, except as required to prepare the policy as

prescribed by section 26.1-30-01.
N.D. Cent. Code § 26.1-36-09.4 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.4
26.1-36-09.4. Preventive health care - Copayments
Status: repealed

26.1-36-09.4. Preventive health care - Copayments

Repealed by S.L. 2013, ch. 236, § 6.
N.D. Cent. Code § 26.1-20-01 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-01
26.1-20-01. Title insurance company subject to insurance company requirements
Status: in_force

26.1-20-01. Title insurance company subject to insurance company requirements

Every domestic or foreign corporation organized for the purpose of insuring titles to real

property in this state or of insuring against loss by reason of defective titles thereto, or

encumbrances thereon, is subject to and shall comply with all the requirements of the laws of

this state made applicable to insurance companies generally and the rules of the commissioner,

except as provided in this chapter or when the laws and rules are inconsistent with this chapter.
N.D. Cent. Code § 26.1-26.6-09 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-09
26.1-26.6-09. Failure to appear
Status: in_force

26.1-26.6-09. Failure to appear

If a defendant fails to appear for a scheduled court appearance, the clerk of court shall

notify the bail bond agent. If the bail bond agent returns the defendant to the jurisdiction of the

court, the bail bond agent may petition the court for a return of the forfeiture. If the bail bond

agent returns the defendant to the jurisdiction of the court within six months of receiving notice

of the failure to appear, the court shall return at least fifty percent of the forfeiture upon petition

by the bail bond agent. If the bail bond agent returns the defendant to the jurisdiction of the

court beyond six months of receiving notice of the failure to appear, the court may return the

forfeiture upon receipt of a petition from the bail bond agent, less five percent for court costs.
N.D. Cent. Code § 26.1-21-02 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-02
26.1-21-02. State bonding fund - Office of management and budget - Administrative services - Continuing appropriation - Report
Status: in_force

26.1-21-02. State bonding fund - Office of management and budget - Administrative

services - Continuing appropriation - Report.

1. There is created in the state treasury the state bonding fund for the bonding of public

employees and public officials. The fund consists of all assessments, interest,

investment earnings, and other income collected under this chapter.

2. The office shall manage the fund. The office may contract for administrative services

from the North Dakota insurance reserve fund or another entity to assist with the

management of the fund. A contract for administrative services must have a two-year

term ending on June thirtieth of each odd-numbered year, and the contract may not be

terminated except at the end of the two-year term. If either party does not anticipate

renewing the contract for another two-year term, the party shall give notice of the

intent to not renew by September thirtieth of the even-numbered year during the

two-year term.

3. Moneys in the fund are appropriated to the office on a continuing basis for paying

claims against the fund, contracting for administrative services as provided under

subsection 2, paying costs incurred by the state auditor for investigations under

section 26.1-21-12, and paying reinsurance costs under section 26.1-21-21.

4. If the balance of the fund is less than three million dollars, the office shall collect

assessments from state agencies and political subdivisions. If the balance of the fund

exceeds three million dollars, the office shall waive assessments until the balance of

the fund is less than two million dollars at which time the office shall resume collecting

assessments.

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

inefficiency of any public official, the office shall notify the state auditor to conduct an

investigation.

6. The office shall include a summary of the fund in the biennial report submitted in

accordance with section 54-06-04. The summary must include the revenues,

expenditures, and balance of the fund.
N.D. Cent. Code § 26.1-38.1-01 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-01
26.1-38.1-01. Coverage and limitations
Status: in_force

26.1-38.1-01. Coverage and limitations

1. This section provides coverage for the policies and contracts specified in subsection 2:

a. To persons, except for nonresident certificate holders under group policies or

contracts, who, regardless of where they reside, are the beneficiaries, assignees,

or payees, including health care providers rendering services covered under

health insurance policies or certificates, of the persons covered under

subdivision b.

b. To persons who are owners of or certificate holders or enrollees under such

policies or contracts other than unallocated annuity contracts and structured

settlement annuities, and in each case who:

(1) Are residents; or

(2) Are not residents, but only under all of the following conditions:

(a) The member insurer that issued such policies or contracts is domiciled

in this state;

(b) The states in which the persons reside have associations similar to

the association created under this chapter; and

(c) The persons are not eligible for coverage by an association in any

other state because the insurer or the health maintenance

organization was not licensed in the state at the time specified in the

state's guaranty association law.

c. For any unallocated annuity contract specified in subsection 2, subdivisions a and

b do not apply, and this chapter, except as provided in subdivisions e and f,

provides coverage to:

(1) Persons who are the owners of the unallocated annuity contracts if the

contracts are issued to or in connection with a specific benefit plan, the

sponsor of which has its principal place of business in this state; and

(2) Persons who are owners of unallocated annuity contracts issued to or in

connection with government lotteries if the owners are residents.

d. For structured settlement annuities specified in subsection 2, subdivisions a and

b do not apply, and this chapter, except as provided in subdivisions e and f,

provides coverage to a person who is a payee under a structured settlement

annuity or beneficiary of a payee if the payee is deceased, if the payee:

(1) Is a resident, regardless of where the contract owner resides; or

(2) Is not a resident, and:

(a) The contract owner of the structured settlement annuity is a resident,

or the contract owner of the structured settlement annuity is not a

resident but the insurer that issued the structured settlement annuity is

domiciled in this state and the state in which the contract owner

resides has an association similar to the association created under

this chapter; and

(b) Neither the payee or beneficiary nor the contract owner is eligible for

coverage by the association of the state in which the payee or contract

owner resides.

e. This chapter does not provide coverage to:

(1) A person who is a payee or beneficiary of a contract owner resident of this

state, if the payee or beneficiary is afforded any coverage by the association

of another state;

(2) A person covered under subdivision c, if any coverage is provided by the

association of another state to the person; or

(3) A person who acquires rights to receive payments through a structured

settlement factoring transaction as defined in section 5891(c)(3)(A) of title

26 of the United States Code, regardless of whether the transaction

occurred before or after this federal law became effective.

f. This chapter provides coverage to a person who is a resident of this state and, in

special circumstances, to a nonresident. In order to avoid duplicate coverage, if a

person who would otherwise receive coverage under this chapter is provided

coverage under the laws of any other state, the person may not be provided

coverage under this chapter. In determining the application of the provisions of

this subdivision in situations in which a person could be covered by the

association of more than one state, whether as an owner, payee, enrollee,

beneficiary, or assignee, this chapter must be construed in conjunction with other

state laws to result in coverage by only one association.

2. This chapter provides coverage to the persons specified in subsection 1 for policies or

contracts of direct, nongroup life insurance, health insurance, which for the purposes

of this chapter includes health maintenance organization subscriber contracts and

certificates, or annuities, and supplemental contracts to any of these, for certificates

under direct group policies and contracts, and supplemental contracts to any of these

and for unallocated annuity contracts issued by member insurers, except as limited by

this chapter. Annuity contracts and certificates under group annuity contracts include

guaranteed investment contracts, deposit administration contracts, unallocated funding

agreements, allocated funding agreements, structured settlement annuities, annuities

issued to or in connection with government lotteries, and any immediate or deferred

annuity contracts.

3. Except for the portion of a policy or contract, including a rider, which provides

long-term care or any other health insurance benefits, this chapter does not provide

coverage for:

a. Any portion of a policy or contract not guaranteed by the member insurer, or

under which the risk is borne by the policy owner or contract owner;

b. Any policy or contract of reinsurance, unless assumption certificates have been

issued pursuant to the reinsurance policy or contract;

c. Any portion of a policy or contract to the extent that the rate of interest on which

the portion of the policy or contract is based or to the extent that the rate of

interest, crediting of a rate of interest, or similar factor determined by using an

index or other external reference stated in the policy or contract which is

employed in calculating returns or changes in value:

(1) Averaged over the period of four years prior to the date on which the

member insurer becomes an impaired or insolvent insurer under this

chapter, whichever is earlier, exceeds a rate of interest determined by

subtracting two percentage points from Moody's corporate bond yield

average averaged for that same four-year period or for such lesser period if

the policy or contract was issued less than four years prior to the date on

which the member insurer becomes an impaired or insolvent insurer under

this chapter, whichever is earlier; and

(2) On and after the date on which the member insurer becomes an impaired or

insolvent insurer under this chapter, whichever is earlier, exceeds the rate of

interest determined by subtracting three percentage points from Moody's

corporate bond yield average as most recently available;

d. A portion of a policy or contract issued to a plan or program of an employer,

association, or other person to provide life, health, or annuity benefits to its

employees, members, or others, to the extent that such plan or program is

self-funded or uninsured, including benefits payable by an employer, association,

or other person under:

(1) A multiple employer welfare arrangement as defined in section 1144 of

title 29 of the United States Code;

(2) A minimum premium group insurance plan;

(3) A stop-loss group insurance plan; or

(4) An administrative services only contract;

e. Any portion of a policy or contract to the extent that it provides for dividends or

experience rating credits, voting rights, or payment of any fees or allowances to

any person, including the policy owner or contract owner, in connection with the

service to or administration of the policy or contract;

f. Any policy or contract issued in this state by a member insurer at a time when it

was not licensed or did not have a certificate of authority to issue the policy or

contract in this state;

g. Any unallocated annuity contract issued to or in connection with a benefit plan

protected under the federal pension benefit guaranty corporation regardless of

whether the federal pension benefit guaranty corporation has yet become liable to

make any payments with respect to the benefit plan;

h. Any portion of any unallocated annuity contract which is not issued to, or in

connection with, a specific employee, union, or association of natural persons

benefit plan or a government lottery;

i. A portion of a policy or contract to the extent that the assessments required by

section 26.1-38.1-06 with respect to the policy or contract are preempted or

otherwise not permitted by federal or state law;

j. An obligation that does not arise under the express written terms of the policy or

contract issued by the member insurer to the enrollee, certificate holder, contract

owner or policy owner, including:

(1) Claims based on marketing materials;

(2) Claims based on side letters, riders, or other documents that were issued by

the member insurer without meeting applicable policy or contract form filing

or approval requirements;

(3) Misrepresentations of or regarding policy or contract benefits;

(4) Extracontractual claims; or

(5) A claim for penalties or consequential or incidental damages;

k. A contractual agreement that establishes the member insurer's obligations to

provide a book value accounting guaranty for defined contribution benefit plan

participants by reference to a portfolio of assets that is owned by the benefit plan

or its trustee, which in each case is not an affiliate of the member insurer;

l. A portion of a policy or contract to the extent it provides for interest or other

changes in value to be determined by the use of an index or other external

reference stated in the policy or contract, but which has not been credited to the

policy or contract, or as to which the policy owner's or contract owner's rights are

subject to forfeiture, as of the date the member insurer becomes an impaired or

insolvent insurer under this chapter, whichever is earlier. If a policy's or contract's

interest or changes in value are credited less frequently than annually, then for

purposes of determining the values that have been credited and are not subject

to forfeiture under this subdivision, the interest or changes in value determined by

using the procedures defined in the policy or contract will be credited as if the

contractual date of crediting interest or changing values was the date of

impairment or insolvency, whichever is earlier, and is not subject to forfeiture;

m. A policy or contract providing any hospital, medical, prescription drug, or other

health care benefits pursuant to part C or part D of subchapter XVIII of chapter 7

of title 42 of the United States Code, commonly known as Medicare part C and

part D, or subchapter XIX of chapter 7 of title 42 of the United States Code;

commonly known as Medicaid, or any regulations issued pursuant thereto; and

n. Structured settlement annuity benefits to which a payee or beneficiary has

transferred the payee's or beneficiary's rights in a structured settlement factoring

transactions, as defined in section 5891(c)(3)(A) of title 26 of the United States

Code, regardless of whether the transaction occurred before or after this federal

law became effective.

4. The benefits that the association may become obligated to cover may in no event

exceed the lesser of:

a. The contractual obligations for which the member insurer is liable or would have

been liable if it were not an impaired or insolvent insurer; or

b. (1) With any respect to one life, regardless of the number of policies, or

contracts:

(a) Three hundred thousand dollars in life insurance death benefits, but

not more than one hundred thousand dollars in net cash surrender

and net cash withdrawal values for life insurance;

(b) For health insurance benefits:

[1] One hundred thousand dollars for coverages not defined as

disability income insurance or health benefit plans or long-term

care insurance, including any net cash surrender and net cash

withdrawal values.

[2] Three hundred thousand dollars for disability income insurance,

and three hundred thousand dollars for long-term care insurance.

[3] Five hundred thousand dollars for health benefit plans.

(c) Two hundred fifty thousand dollars in the present value of annuity

benefits, including net cash surrender and net cash withdrawal values.

(2) With respect to each individual participating in a government retirement

benefit plan established under section 401(k), 403(b), or 457 of the United

States Internal Revenue Code covered by an unallocated annuity contract

or the beneficiaries of each such individual if deceased, in the aggregate,

two hundred fifty thousand dollars in present value annuity benefits,

including net cash surrender and net cash withdrawal values.

(3) With respect to each payee of a structured settlement annuity or beneficiary,

or beneficiaries of the payee if deceased, two hundred fifty thousand dollars

in present value annuity benefits, in the aggregate, including net cash

surrender and net cash withdrawal values, if any.

(4) However, in no event shall the association be obligated to cover more than:

(a) An aggregate of three hundred thousand dollars in benefits with

respect to any one life under paragraphs 1, 2, and 3 of subdivision b

except with respect to the benefits for health benefit plans under

subparagraph b of paragraph 1 of subdivision b, in which case the

aggregate liability of the association shall not exceed five hundred

thousand dollars with respect to any one individual; or

(b) With respect to one owner of multiple nongroup policies of life

insurance, whether the persons insured are officers, managers,

employees, or other persons, more than five million dollars in benefits,

regardless of the number of policies and contracts held by the owner.

(5) With respect to either one contract owner provided coverage under

paragraph 2 of subdivision c of subsection 1; or one plan sponsor whose

plans own directly or in trust one or more unallocated annuity contracts not

included in paragraph 2 of subdivision b, five million dollars in benefits,

irrespective of the number of contracts with respect to the contract owner or

plan sponsor. However, in the case in which one or more unallocated

annuity contracts are covered contracts under this chapter and are owned

by a trust or other entity for the benefit of two or more plan sponsors,

coverage must be afforded by the association if the largest interest in the

trust or entity owning the contract or contracts is held by a plan sponsor

whose principal place of business is in this state and in no event is the

association obligated to cover more than five million dollars in benefits with

respect to all these unallocated contracts.

(6) The limitations set forth in this subsection are limitations on the benefits for

which the association is obligated before taking into account either its

subrogation and assignment rights or the extent to which those benefits

could be provided out of the assets of the impaired or insolvent insurer

attributable to covered policies. The costs of the association's obligations

under this chapter may be met by the use of assets attributable to covered

policies or reimbursed to the association pursuant to its subrogation and

assignment rights.

5. In performing its obligations to provide coverage under this chapter, the association is

not required to guarantee, assume, reinsure, reissue, or perform, or cause to be

guaranteed, assumed, reinsured, reissued, or performed, the contractual obligations of

the insolvent or impaired insurer under a covered policy or contract that do not

materially affect the economic values or economic benefits of the covered policy or

contract.

6. For purposes of this chapter, benefits provided by a long-term care rider to a life

insurance policy or annuity contract must be considered the same type of benefits as

the related base life insurance policy or annuity contract.
N.D. Cent. Code § 26.1-29-15 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-15
26.1-29-15. Rescission for concealment - Exception
Status: in_force

26.1-29-15. Rescission for concealment - Exception

A concealment, whether intentional or unintentional, entitles the injured party to rescind an

insurance contract. An intentional and fraudulent omission on the part of one insured to

communicate information of matters proving or tending to prove the falsity of a warranty entitles

the insurer to rescind. This section does not apply to automobile insurance policies, but such

policies are subject to cancellation as provided in section 26.1-40-02.
N.D. Cent. Code § 26.1-05-03 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-03
26.1-05-03. Organization of domestic mutual life company - Number of organizers required
Status: repealed

26.1-05-03. Organization of domestic mutual life company - Number of organizers

required.

Repealed by S.L. 1999, ch. 254, § 13.
N.D. Cent. Code § 26.1-36.12-11 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-11
26.1-36.12-11. Chronic or long-term care conditions
Status: in_force

26.1-36.12-11. Chronic or long-term care conditions

If a prior authorization review organization requires a prior authorization for a health care

service for the treatment of a chronic or long-term care condition, the prior authorization remains

valid for twelve months.
N.D. Cent. Code § 26.1-03-03 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-03
26.1-03-03. Cooperative and assessment life associations - Valuation of policies
Status: in_force

26.1-03-03. Cooperative and assessment life associations - Valuation of policies

Cooperative or assessment life associations must be admitted to transact business in this

state upon compliance with the provisions of this title relating to the licensing and admission of

life insurance companies without being required to value their policies in conformity with chapter
N.D. Cent. Code § 26.1-36-12.5 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.5
26.1-36-12.5. Basic health insurance coverage - Exceptions to required coverage
Status: in_force

26.1-36-12.5. Basic health insurance coverage - Exceptions to required coverage

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

organization may deliver, issue, execute, and renew a basic health insurance policy,

health service contract, or evidence of coverage on an individual basis or an employer

group, blanket, franchise, or association basis for employers with fewer than fifty

employees.

2. The basic health insurance coverage policy, contract, or evidence of coverage under

this section is not subject to sections 26.1-36-06.1, 26.1-36-08, 26.1-36-09.1,

26.1-36-09.3, 26.1-36-09.6, 26.1-36-09.7, 26.1-36-09.9, 26.1-36-09.10, 26.1-36-12.1,

and 43-13-31. However, the insurance company, nonprofit health service corporation,

or health maintenance organization shall make the coverage required under these

sections available at the option of the individual or employer and may charge an

additional premium for each coverage provided.

3. Any law that becomes effective after January 1, 2001, which provides for an accident

and health insurance coverage mandate does not apply to a basic health insurance

policy issued under this section unless the law specifically identifies application to a

basic health insurance coverage policy.
N.D. Cent. Code § 26.1-18.1-16 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-16
26.1-18.1-16. Regulation of health maintenance organization producers
Status: in_force

26.1-18.1-16. Regulation of health maintenance organization producers

1. The commissioner may adopt rules necessary to provide for the licensing of health

maintenance organization producers. The rules must establish:

a. The requirements for licensure of resident health maintenance organization

producers.

b. The conditions for entering into reciprocal agreements with other jurisdictions for

the licensure of nonresident health maintenance organization producers.

c. Any examination, prelicensing, or continuing education requirements.

d. The requirements for registering and terminating the appointment of health

maintenance organization producers.

e. Any requirements for registering any assumed names or office locations in which

a health maintenance organization producer does business.

f. The conditions for health maintenance organization producer license renewal.

g. The grounds for denial, refusal, suspension, or revocation of a health

maintenance organization producer's license.

h. Any required fees for the licensing activities of health maintenance organization

producers.

i. Any other requirement or procedure and any form as may be reasonably

necessary to provide for the effective administration of the licensing of health

maintenance organization producers under this section.

2. None of the following may be required to hold a health maintenance organization

producer license:

a. Any regular salaried officer or employee of a health maintenance organization

who devotes substantially all of the person's time to activities other than the

taking or transmitting of applications or membership fees or premiums for health

maintenance organization membership, or who receives no commission or other

compensation directly dependent upon the business obtained and who does not

solicit or accept from the public applications for health maintenance organization

membership;

b. Employers or their officers or employees or the trustees of any employee benefit

plan to the extent that the employers, officers, employees, or trustees are

engaged in the administration or operation of any program of employee benefits

involving the use of health maintenance organization memberships, provided that

the employers, officers, employees, or trustees are not in any manner

compensated directly or indirectly by the health maintenance organization issuing

the health maintenance organization memberships;

c. Banks or their officers and employees to the extent that the banks, officers, and

employees collect and remit charges by charging same against accounts of

depositors on the orders of the depositor; or

d. Any person or the employee of any person who has contracted to provide

administrative, management, or health care services to a health maintenance

organization and who is compensated for those services by the payment of an

amount calculated as a percentage of the revenues, net income, or profit of the

health maintenance organization, if that method of compensation is the sole basis

for subjecting that person or the employee of the person to this chapter.

3. The commissioner may by rule exempt certain classes of persons from the

requirement of obtaining a license:

a. If the functions they perform do not require special competence, trustworthiness,

or the regulatory surveillance made possible by licensing; or

b. If other existing safeguards make regulation unnecessary.
N.D. Cent. Code § 26.1-02-01 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-01
26.1-02-01. Definitions
Status: in_force

26.1-02-01. Definitions

In chapters 26.1-02 through 26.1-04, unless the context or subject matter otherwise

requires:

1. "Domestic" means incorporated or formed in this state.

2. "Foreign", when used without limitation, means formed by the authority of any state or

government other than this state.

3. "Foreign decree" means any decree or order in equity of a court located in a reciprocal

state, including a court of the United States, against any insurer incorporated or

authorized to do business in this state.

4. "Insurance company" includes any corporation, association, benefit society, exchange,

partnership, or individual engaged as principal in the business of insurance.

5. "Qualified party" means a state regulatory agency acting in its capacity to enforce the

insurance laws of its state.

6. "Reciprocal state" means any state the laws of which contain procedures substantially

similar to those specified in this chapter for the enforcement of decrees or orders in

equity issued by courts located in other states, against any insurance company

incorporated or authorized to do business in that state.
N.D. Cent. Code § 26.1-40-16.1 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-16.1
26.1-40-16.1. Payment of benefits to family members of a policyholder
Status: in_force

26.1-40-16.1. Payment of benefits to family members of a policyholder

An automobile insurance policy that provides coverage for bodily injury may not contain any

provision limiting payment of benefits or reducing the amount of benefits payable to a person

because the person to whom benefits are being paid under that policy is related to the

policyholder by blood, marriage, or adoption, or is a foster child, and resides in the same

household as the policyholder. However, a relative may be excluded from coverage under

section 26.1-40-16.
N.D. Cent. Code § 26.1-02-24.1 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-24.1
26.1-02-24.1. Definition
Status: in_force

26.1-02-24.1. Definition

For the purpose of this section and section 26.1-02-24.2, "fraudulent insurance act" means

an act committed by any person who, knowingly and with intent to defraud, presents, causes to

be presented, or prepares with knowledge or belief that it will be presented to or by an insurer,

purported insurer, insurance producer, or any agent thereof, any written statement as part of, or

in support of, an application for the issuance of, or the rating of an insurance policy for

commercial insurance, or a claim for payment or other benefit pursuant to an insurance policy

for commercial or personal insurance which the person knows to contain materially false

information concerning any fact material thereto; or conceals, for the purpose of misleading,

information concerning any fact material thereto.
N.D. Cent. Code § 26.1-24-10 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-10
26.1-24-10. Insurer's audit to determine premium - Time limitation
Status: in_force

26.1-24-10. Insurer's audit to determine premium - Time limitation

An insurer providing commercial insurance may conduct an audit to determine the premium

due or to be refunded only within one hundred eighty days after the expiration date of the policy

unless the insured agrees in writing to extend that period of time.
N.D. Cent. Code § 26.1-27.1-04 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-04
26.1-27.1-04. Prohibited practices
Status: in_force

26.1-27.1-04. Prohibited practices

1. A pharmacy benefits manager shall comply with sections 19-02.1-01, 19-02.1-02,

19-02.1-14.2, 19-02.1-16, 19-02.1-16.1, 19-02.1-16.2, 19-02.1-16.3, 19-02.1-16.4,

19-02.1-16.5, and 19-02.1-16.6 in chapter 19-02.1.

2. A pharmacy benefits manager may not require a pharmacist or pharmacy to participate

in one contract in order to participate in another contract. The pharmacy benefits

manager may not exclude an otherwise qualified pharmacist or pharmacy from

participation in a particular network if the pharmacist or pharmacy accepts the terms,

conditions, and reimbursement rates of the pharmacy benefits manager's contract.

3. A pharmacy benefits manager shall offer pharmacy contracts that are opt-in contracts

with at least thirty days to respond and signatures must be obtained from the

pharmacy or an entity contracting on behalf of the pharmacy.

4. A pharmacy may opt-out of a pharmacy benefits managers contract by providing at

least a ninety-day notice.
N.D. Cent. Code § 26.1-06.1-31 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-31
26.1-06.1-31. Reinsurer's liability
Status: in_force

26.1-06.1-31. Reinsurer's liability

1. The amount recoverable by the liquidator from reinsurers may not be reduced as a

result of the delinquency proceedings unless the reinsurance contract provides, in

substance, that in the event of the insolvency of the ceding insurer, the reinsurance

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

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

claim by a guaranty association without diminution because of the insolvency of the

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

ceding insurer's domiciliary liquidator except if:

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

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

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

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

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

the ceding insurer to such payees.

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

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

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

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

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

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

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

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

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

claim payment.
N.D. Cent. Code § 26.1-29-28 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-28
26.1-29-28. Alteration or withdrawal of representation
Status: in_force

26.1-29-28. Alteration or withdrawal of representation

A representation may be altered or withdrawn before the effective date of the insurance but

not afterwards.
N.D. Cent. Code § 26.1-10.3-07 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-07
26.1-10.3-07. Sanctions
Status: in_force

26.1-10.3-07. Sanctions

Any insurer failing, without just cause, to timely file the corporate governance annual

disclosure as required in this chapter is required, after notice and hearing, to pay a penalty of

five hundred dollars for each day's delay, to be recovered by the commissioner and the penalty

so recovered shall be paid into the general fund. The maximum penalty under this section is one

hundred thousand dollars. The commissioner may reduce the penalty if the insurer

demonstrates to the commissioner that the imposition of the penalty would constitute a financial

hardship to the insurer.
N.D. Cent. Code § 26.1-15.1-21 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-21
26.1-15.1-21. Investments
Status: in_force

26.1-15.1-21. Investments

A society may invest its funds only in investments authorized by the laws of this state for the

investment of assets of life insurers and subject to the limitations thereon. Any foreign society

permitted or seeking to do business in this state which invests its funds in accordance with the

laws of the state, district, territory, country, or province in which it is incorporated, meets the

requirements of this section for the investment of funds.
N.D. Cent. Code § 26.1-17.1-15 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-15
26.1-17.1-15. Insurance producers
Status: in_force

26.1-17.1-15. Insurance producers

No individual may apply, procure, negotiate, or place for others any policy or contract of a

prepaid limited health service organization unless that individual holds a license or is otherwise

duly authorized to sell accident and health insurance policies, health, hospital or medical service

contracts, or health maintenance organization contracts.
N.D. Cent. Code § 26.1-02.1-01 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-01
26.1-02.1-01. Definitions
Status: in_force

26.1-02.1-01. Definitions

As used in this chapter:

1. "Breach of trust" means any criminal act or an element of a criminal act by a person,

including an act that constitutes or involves misuse, misapplication, or

misappropriation of the following:

a. Anything of value held as a fiduciary, in which "fiduciary" includes a trustee,

administrator, executor, conservator, receiver, guardian, agent, employee,

partner, officer, director, or public service; or

b. Anything of value of any public, private, or charitable organization.

2. "Business of insurance" means the writing of insurance or the reinsuring of risks by an

insurer, including acts necessary or incidental to writing insurance or reinsuring risks

and the activities of persons who act as or who are officers, directors, agents,

producers, or employees of insurers, or who are other persons authorized to act on

their behalf. The term does not include the activities of the North Dakota life and health

insurance guaranty association or the North Dakota insurance guaranty association.

3. "Dishonesty" means a criminal act, including an offense constituting or involving

perjury, bribery, arson, knowingly receiving or possession of stolen property, forgery or

falsification of documents, counterfeiting, knowingly issuing a bad check, false or

misleading oral or written statements, false pretenses, deception, fraud, schemes or

artifices to deceive or defraud, material misrepresentations, or the failure to disclose

material facts.

4. "Financial loss" includes loss of earnings, out-of-pocket and other expenses, repair

and replacement costs, and claims payments.

5. "Fraudulent insurance act" includes the following acts or omissions committed by a

person knowingly and with intent to defraud:

a. Presenting, causing to be presented, or preparing with knowledge or belief that it

will be presented to or by an insurer, reinsurer, insurance producer, or any agent

thereof, false or misleading information as part of, in support of, or concerning a

fact material to one or more of the following:

(1) An application for the issuance or renewal of an insurance policy or

reinsurance contract;

(2) The rating of an insurance policy or reinsurance contract;

(3) A claim for payment or benefit pursuant to an insurance policy or

reinsurance contract;

(4) Premiums paid on an insurance policy or reinsurance contract;

(5) Payments made in accordance with the terms of an insurance policy or

reinsurance contract;

(6) A document filed with the commissioner or the chief insurance regulatory

official of another jurisdiction;

(7) The financial condition of an insurer or reinsurer;

(8) The formation, acquisition, merger, reconsolidation, dissolution, or

withdrawal from one or more lines of insurance or reinsurance in all or part

of this state by an insurer or reinsurer;

(9) The issuance of written evidence of insurance;

(10) The reinstatement of an insurance policy; or

(11) The formation of an agency, brokerage, or insurance producer contract.

b. Solicitation or acceptance of new or renewal insurance risks on behalf of an

insurer, reinsurer, or other person engaged in the business of insurance by a

person who knows or should know that the insurer or other person responsible for

the risk is insolvent at the time of the transaction.

c. Removal, concealment, alteration, or destruction of the assets or records of an

insurer, reinsurer, or other person engaged in the business of insurance.

d. Theft by deception or otherwise, or embezzlement, abstracting, purloining, or

conversion of moneys, funds, premiums, credits, or other property of an insurer,

reinsurer, or person engaged in the business of insurance.

e. Attempting to commit, aiding or abetting in the commission of, or conspiring to

commit the acts or omissions specified in this section.

6. "Insurance" means a contract or arrangement in which one undertakes to pay or

indemnify another as to loss from certain contingencies called "risks", including

through reinsurance; pay or grant a specified amount or determinable benefit to

another in connection with ascertainable risk contingencies; pay an annuity to another;

or act as surety. The term does not include a debt cancellation contract between a

bank and debtor, between a credit union and debtor, or between a savings association

and debtor and does not include a debt suspension contract between a bank and

debtor, between a credit union and debtor, or between a savings association and

debtor.

7. "Insurer" means a person entering into arrangements or contracts of insurance or

reinsurance and who agrees to perform any of the acts set forth in subsection 4,

whether the person has or is required to have a certificate of authority or denies being

an insurer. The term does not include the North Dakota life and health insurance

guaranty association, the risk management fund, a bank, credit union, or savings

association as a party to a debt cancellation contract or debt suspension contract, or

the North Dakota insurance guaranty association.

8. "Person" means an individual, corporation, partnership, association, joint stock

company, trust, unincorporated organization, or any similar entity or any combination

of the foregoing.

9. "Policy" means an individual or group policy, group certificate, contract, or

arrangement of insurance or reinsurance affecting the rights of a resident of this state

or bearing a reasonable relation to this state, regardless of whether delivered or issued

for delivery in this state.

10. "Practitioner" means a licensee of this state authorized to practice medicine and

surgery, psychology, chiropractic, or law or any other licensee of the state whose

services are compensated, directly or indirectly, by insurance proceeds, or a licensee

similarly licensed in other states and nations or the practitioner of any nonmedical

treatment rendered in accordance with a recognized religious method of healing.

11. "Reinsurance" means a contract, binder of coverage including placement slip, or

arrangement under which an insurer procures insurance for itself in another insurer as

to all or part of an insurance risk of the originating insurer.
N.D. Cent. Code § 26.1-13-28 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-28
26.1-13-28. Borrowing of money authorized
Status: in_force

26.1-13-28. Borrowing of money authorized

The board of directors of a county mutual insurance company, in the board's discretion, may

borrow money for the payment of unpaid losses.
N.D. Cent. Code § 26.1-37-06 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-06
26.1-37-06. Term of consumer credit insurance
Status: in_force

26.1-37-06. Term of consumer credit insurance

1. Effective date of coverage:

a. For consumer credit insurance made available to and elected by the debtor

before or contemporaneous with a credit transaction to which the insurance

relates, the term of the insurance, subject to acceptance by the insurer,

commences on the date when the debtor becomes obligated to the creditor,

except that when evidence of individual insurability is required and the evidence

is furnished more than thirty days after the date when the debtor becomes

obligated to the creditor, the term of the credit insurance may commence on the

date on which the insurer determines the evidence to be satisfactory.

b. For insurance coverage made available to and elected by the debtor on a date

subsequent to the date of the consumer credit transaction to which the insurance

relates, the insurance, subject to acceptance by the insurer, commences on a

date not earlier than the date the election is made by the debtor nor later than

thirty days following the date on which the insurance company accepts the risk for

coverage, according to an objective method such as one related to a particular

date within a billing or repayment cycle or a calendar month.

c. Notwithstanding the provisions of subdivisions a and b, when a group policy

provides coverage with respect to debts existing on the policy effective date, the

insurance relating to the debt shall not commence before the effective date of the

group policy.

d. A charge for insurance may not be made to the debtor and retained by the

creditor or insurer for any time prior to commencement of the consumer credit

insurance to which the charge is related.

2. Termination date of coverage:

a. The term of any consumer credit insurance may not extend beyond the

termination date specified in the policy. The termination date of insurance may

precede, coincide with, or follow the scheduled maturity date of the debt to which

it relates, subject to any other requirements and restrictions of this chapter.

b. The term of any consumer credit insurance may not extend more than fifteen

days beyond the scheduled maturity date of the debt except when extended

without additional cost to the debtor or except when extended pursuant to a

written agreement, signed by the debtor, in connection with a variable interest

rate credit transaction or a deferral, renewal, refinancing, or consolidation of debt.

c. If the debt is discharged due to renewal, refinancing, or consolidation prior to the

scheduled termination date of the insurance, any insurance in force must be

terminated before any new insurance may be written in connection with the

renewed, refinanced, or consolidated debt.

d. In all cases of termination of insurance prior to the scheduled termination of the

insurance, an appropriate refund or credit to the debtor must be made of any

unearned insurance charge paid by the debtor for a term of insurance after the

date of the termination, except that a refund is not required of a charge made for

insurance if the insurance is terminated by performance of the insurer's obligation

with respect to the insurance.

e. An insured debtor may terminate consumer credit insurance at any time by

providing advance request to the insurer. The individual policy or group certificate

may require that the request be in writing or that the debtor surrender the

individual policy or group certificate or both. The debtor's right to terminate

coverage may also be subject to the terms of the credit transaction contract.
N.D. Cent. Code § 26.1-12.2-02 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-02
26.1-12.2-02. Adoption of plan of conversion
Status: in_force

26.1-12.2-02. Adoption of plan of conversion

1. A plan of conversion does not become effective unless the converting mutual company

seeking to become a converted stock company adopted, by the affirmative vote of not

less than two-thirds of its governing body, a plan of conversion consistent with the

requirements of sections 26.1-12.2-03 and 26.1-12.2-04, or of section 26.1-12.2-05. At

any time before approval of a plan of conversion by the commissioner, the converting

mutual company, by the affirmative vote of not less than two-thirds of its governing

body, may amend or withdraw the plan.

2. Before the eligible members of a converting mutual company may vote on approval of

a plan of conversion, a converting mutual company whose governing body has

adopted a plan shall file all of the following documents with the commissioner within

ninety days after adoption of the plan of conversion together with the application fee:

a. The plan of conversion, including the independent evaluation required by

subsection 4 of section 26.1-12.2-03.

b. The form of notice and proxy required by subsection 7 of section 26.1-12.2-02.

c. The form of notice required by section 26.1-12.2-09 to persons whose policies

are issued after adoption of the plan of conversion but before the plan of

conversion's effective date.

d. The proposed certificate of incorporation and bylaws of the converted stock

company.

e. The acquisition of control statement, as required by section 26.1-10-03.

f. The application fee, equal to the greater of ten thousand dollars or an amount

equal to one-tenth of one percent of the estimated pro forma market value of the

converted stock company as determined in accordance with subsection 4 of

section 26.1-12.2-03. If such value is expressed as a range of values, the

application fee must be based upon the midpoint of the range. The application fee

is in addition to other direct costs incurred by the commissioner in reviewing the

proposed plan of conversion. For good cause shown, the commissioner may

waive the application fee in whole or in part, or permit a portion of the application

fee to be deferred until completion of the conversion.

g. Such other information as the commissioner may request.

3. Upon filing with the commissioner the documents required under subsection 2, the

converting mutual company shall send to eligible members a notice advising eligible

members of the adoption and filing of the plan of conversion, the ability of the eligible

members to provide the commissioner and the converting mutual company with

comments on the plan of conversion within thirty days of the date of such notice, and

the procedure of providing such comments.

4. The commissioner shall approve the plan if the commissioner finds:

a. The plan complies with this chapter;

b. The plan is fair and equitable to the converting mutual company, the members of

the converting mutual company, and the eligible members of the converting

mutual company;

c. The plan's method of allocating subscription rights is fair and equitable;

d. The plan will not otherwise prejudice the interests of the members; and

e. The converted stock company will have the amount of capital and surplus

deemed by the commissioner to be reasonable for its future solvency.

5. At the expense of the converting mutual company, the commissioner may retain any

qualified expert not otherwise a part of the commissioner's staff, including counsel and

financial advisors, to assist in reviewing the plan of conversion and the independent

valuation required under subsection 4 of section 26.1-12.2-03.

6. The commissioner shall order a hearing on whether the terms of the plan of

conversion comply with this chapter after giving written notice by mail or publication to

the converting mutual company and other interested persons, all of whom have the

right to appear at the hearing.

7. The commissioner shall give written notice of any decision to the converting mutual

company and, in the event of disapproval, a detailed statement of the reasons for the

decision.

8. All voting members must be sent notice of the members' meeting to vote on the plan of

conversion no later than forty-five days before the meeting. The notice must describe

the proposed plan of conversion, must inform the member how the proposed plan of

conversion will affect the member's membership rights, must inform the voting member

of the voting member's right to vote upon the plan of conversion, and must be sent to

each voting member's last-known address, as shown on the records of the converting

mutual company. The notice must provide instructions on how the member can obtain,

either by mail or electronically, a full copy of the proposed plan of conversion. If the

meeting to vote upon the plan of conversion is held during the annual meeting of

policyholders, only a combined notice of meeting is required.

9. The plan of conversion must be voted upon by voting members and must be adopted

upon receiving the affirmative vote of at least two-thirds of the votes cast by voting

members at the meeting. Voting members entitled to vote upon the proposed plan of

conversion may vote in person or by proxy. The number of votes each voting member

may cast must be determined by the bylaws of the converting mutual company. If the

bylaws are silent, each voting member may cast one vote.

10. The certificate of incorporation of the converted stock company must be considered at

the meeting of the voting members called for the purpose of adopting the plan of

conversion and must require for adoption the affirmative vote of at least two-thirds of

the votes cast by voting members.

11. Within thirty days after the voting members have approved the plan of conversion in

accordance with the requirements of this section, the converted stock company shall

file with the commissioner:

a. The minutes of the meeting of the voting members at which the plan of

conversion was approved, which must include the record of total votes cast in

favor of the plan; and

b. The certificate of incorporation and bylaws of the converted stock company.
N.D. Cent. Code § 26.1-19-10 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-10
26.1-19-10. Licensing of sales representatives
Status: in_force

26.1-19-10. Licensing of sales representatives

The sales representatives of a prepaid legal services organization are subject to the laws

pertaining to insurance producers as defined in chapter 26.1-26. The license for a sales

representative must be issued on a form prescribed by the commissioner, and the fee for a

license or renewal thereof shall be prescribed in section 26.1-01-07.
N.D. Cent. Code § 26.1-05-18 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-18
26.1-05-18. Investment of funds must be authorized by directors - Prohibited investment practices
Status: in_force

26.1-05-18. Investment of funds must be authorized by directors - Prohibited

investment practices.

An investment or loan, except a policy loan, may not be made by any domestic insurance

company unless the investment or loan first has been authorized by the board of directors of the

company or by an investment committee appointed by the board of directors of the company

charged with the duty of supervising the making of loans or investments by the company. A

domestic insurance company may not:

1. Subscribe to or participate in any underwriting of the purchase or sale of securities or

property.

2. Enter into any transaction for the purchase or sale of any securities or property on

account of the company jointly with any other person, firm, or corporation, except for

authorized real estate joint ventures, partnerships, and limited liability companies.

3. Enter into any agreement to withhold any of its property from sale, but the disposition

of its property at all times is within the control of its board of directors, except for

authorized real estate joint ventures, partnerships, and limited liability companies.

4. Invest any of its funds in, or loan the funds upon, the shares of stock of any

corporation except as otherwise provided in this chapter.

5. Invest any of its funds in, or loan the funds upon, any bonds or obligations, except

government, state, or municipal securities, which are not secured by adequate

collateral security, except as otherwise provided in this chapter.

6. Invest its capital, surplus funds, or other assets in, or loan the same upon, any

property owned by any officer or director of the company, or by any of the immediate

members of the family of any such officer or director, nor in any manner which will

permit any such officer or director to gain through the investment of funds of the

company.