N.D. Cent. Code § 26.1-40-15.1 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.1
26.1-40-15.1. Definitions - Applicable to sections 26.1-40-15.1 through 26.1-40-15.7
Status: in_force

26.1-40-15.1. Definitions - Applicable to sections 26.1-40-15.1 through 26.1-40-15.7

As used in sections 26.1-40-15.1 through 26.1-40-15.7 and unless the context otherwise

requires:

1. "Motor vehicle" means a vehicle, excluding motor vehicles weighing more than twenty

thousand pounds, having two or more load-bearing wheels, of a kind required to be

registered under the laws of this state relating to motor vehicles, designed primarily for

operation upon the public streets, roads, and highways, and driven by power other

than muscular power, and includes a trailer drawn by or attached to such a vehicle.

2. "Underinsured motor vehicle" means a motor vehicle for which there is a bodily injury

liability insurance policy, or bond providing equivalent liability protection, in effect at the

time of the accident, but the applicable limit of bodily injury liability of such policy or

bond:

a. Is less than the applicable limit for underinsured motorist coverage under the

insured's policy; or

b. Has been reduced by payments to other persons injured in the accident to an

amount less than the limit for underinsured motorist coverage under the insured's

policy.

3. "Uninsured motor vehicle" means a motor vehicle for which:

a. There is no bodily injury liability insurance policy, or bond providing equivalent

liability protection, in effect at the time of the accident.

b. There is an applicable policy or bond, but the insurer or issuer thereof refuses to

provide coverage, denies coverage, or is or becomes insolvent as defined in

section 26.1-42.1-02.

c. The identity of the owner or operator cannot be ascertained and the bodily injury,

sickness, disease, or death of the insured is either caused by actual physical

contact of such motor vehicle with the insured, or with a motor vehicle occupied

by the insured, or is independently verified by a disinterested witness.

4. The terms "uninsured motor vehicle" and "underinsured motor vehicle" do not mean a

motor vehicle:

a. Insured under the liability coverage of the same policy of which the uninsured

motorist or underinsured motorist coverage is a part.

b. Owned by any governmental unit, political subdivision, or agency thereof.

c. Located for use as a residence or premises.

d. With respect to uninsured motorist coverage, a self-insured motor vehicle within

the meaning of the financial or safety responsibility law of the state in which the

motor vehicle is registered, or any similar state or federal law.

e. Operated by any person who is specifically excluded from coverage in the policy.

The term "underinsured motor vehicle" may not be construed to include an "uninsured

motor vehicle".
N.D. Cent. Code § 26.1-36-09.6 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.6
26.1-36-09.6. Health insurance policy and health service contract - Prostate-specific antigen test coverage
Status: in_force

26.1-36-09.6. Health insurance policy and health service contract - Prostate-specific

antigen test 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 an annual digital

rectal examination and a prostate-specific antigen test for an asymptomatic male aged fifty and

over, a black male aged forty and over, and a male aged forty or over with a family history of

prostate cancer.
N.D. Cent. Code § 26.1-05-02 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-02
26.1-05-02. Organization of domestic stock company - Number of persons required - Authorized lines
Status: in_force

26.1-05-02. Organization of domestic stock company - Number of persons required -

Authorized lines.

Any number of persons not less than seven may form a corporation on the stock plan to

carry on one or more of the following lines of insurance:

1. Life and annuity means insurance coverage on human lives, including benefits of

endowment, annuities, and credit life.

2. Accident and health means insurance coverage for sickness, disease, injury,

accidental death, and disability.

3. Property means insurance coverage for direct and consequential loss of or damage to

property of every kind.

4. Casualty means insurance coverage against legal liability, including that for death,

injury, or disability or damage to real or personal property.

5. Variable life and annuity means insurance coverage provided under variable life

insurance contracts, variable annuities, or any other life insurance or annuity that

reflects the investment experience of a separate account.

A stock insurance company incorporated under this chapter may carry the lines of insurance

mentioned in this section which have been expressed in its articles of incorporation.
N.D. Cent. Code § 26.1-34-11 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-11
26.1-34-11. Variable annuities authorized - Application of variable life policy sections - Rulemaking authority
Status: in_force

26.1-34-11. Variable annuities authorized - Application of variable life policy sections -

Rulemaking authority.

Any domestic life insurance company, including any domestic fraternal benefit society which

operates on a legal reserve basis, may establish one or more separate accounts and may

allocate thereto amounts, including proceeds applied under optional modes of settlement or

under dividend options, to provide for annuities, and benefits incidental thereto, payable in fixed

or variable amounts or both, subject to the requirements of subsections 1 through 7 of section
N.D. Cent. Code § 26.1-36.9-04 — ND Code / Title 26.1 / Chapter 26.1-36.9 / Section 26.1-36.9-04
26.1-36.9-04. Dental loss ratio transparency - Annual report to the commissioner
Status: in_force

26.1-36.9-04. Dental loss ratio transparency - Annual report to the commissioner

1. A dental insurer that issues, sells, renews, or offers a specialized dental health care

service plan contract shall file a dental loss ratio report with the commissioner by April

thirtieth of each year, in a manner prescribed by the commissioner.

2. The dental loss ratio report must include dental loss ratio information for the last

calendar year for a dental benefit plan provided by a dental insurer and be organized

by market and product type.

3. The commissioner may request the dental insurer provide data verification of any

information provided by the dental insurer in the dental loss ratio report. The dental

insurer shall provide data verification to the commissioner within thirty days of the

request.

4. The commissioner shall make the information provided in the dental loss ratio annual

reports filed under this section available on the department's website, including the

aggregate dental loss ratio, in a manner that allows the public to compare dental loss

ratios among dental insurers by market type.

5. For purposes of this section, "dental loss ratio" has the same meaning as in section

26.1-36.9-03.
N.D. Cent. Code § 26.1-05-29 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-29
26.1-05-29. Nonapplicability of reserve deposit provisions to fraternal benefit societies
Status: in_force

26.1-05-29. Nonapplicability of reserve deposit provisions to fraternal benefit

societies.

Sections 26.1-05-23 through 26.1-05-28 do not apply to fraternal benefit societies.
N.D. Cent. Code § 26.1-17.1-12 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-12
26.1-17.1-12. Complaint system
Status: in_force

26.1-17.1-12. Complaint system

Every prepaid limited health service organization shall establish and maintain a complaint

system providing reasonable procedures for resolving written complaints initiated by enrollees

and providers. Nothing herein may be construed to preclude an enrollee or a provider from filing

a complaint with the commissioner or as limiting the commissioner's ability to investigate such

complaints.
N.D. Cent. Code § 26.1-40-09 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-09
26.1-40-09. Duplicate coverage - Termination of coverage when another policy in force - Notice
Status: in_force

26.1-40-09. Duplicate coverage - Termination of coverage when another policy in

force - Notice.

Notwithstanding the failure of an insurer to comply with sections 26.1-40-01 through

26.1-40-12, if an insured obtains a replacement policy providing equal or more extensive

coverage for a motor vehicle covered in both policies, the first insurer's coverage of that motor

vehicle may be terminated either by cancellation or nonrenewal. The termination is effective on

the effective date of the second policy providing duplicate replacement coverage. Upon

termination, the insured is entitled to a refund of the premium and written notice must be mailed

or delivered to the named insured.
N.D. Cent. Code § 26.1-32-10 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-10
26.1-32-10. Policy requiring corroboration - Proof of loss - How made
Status: in_force

26.1-32-10. Policy requiring corroboration - Proof of loss - How made

If an insurance policy requires the certificate or testimony of a person other than the insured

for a preliminary proof of loss, it is sufficient for the insured to use reasonable diligence to

procure the evidence and, in case of the refusal of the person to provide evidence, to furnish

reasonable evidence to the insurer that refusal was not induced by any just grounds of disbelief

of the facts necessary to be certified.
N.D. Cent. Code § 26.1-05-02.1 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-02.1
26.1-05-02.1. Authority to define products
Status: in_force

26.1-05-02.1. Authority to define products

The commissioner may adopt rules that define and set forth the specific insurance products

found under each line of insurance set forth in section 26.1-05-02.
N.D. Cent. Code § 26.1-36-30 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-30
26.1-36-30. Individual or group accident and health insurer or nonprofit health service corporation responsibility - Release of information to department of health and human services
Status: in_force

26.1-36-30. Individual or group accident and health insurer or nonprofit health service

corporation responsibility - Release of information to department of health and human

services.

1. Any individual or group accident and health insurer or nonprofit health service

corporation, upon request of the department of health and human services, shall

provide any information contained in its records pertaining to an individual who is an

applicant for or recipient of medical assistance under chapter 50-24.1, and who is

covered under an accident and health insurance policy or a health service contract

issued by the insurer or nonprofit health service corporation or the medical benefits

paid by or claims paid to the insured or subscriber under a policy or contract. The

insurer or nonprofit health service corporation shall make the requested records or

information available upon receipt of a certification by the department of health and

human services that the individual is an applicant for or recipient of medical assistance

under chapter 50-24.1, or is a person who is legally responsible for the applicant or

recipient.

2. The information required to be made available pursuant to this section is limited to

information necessary to determine whether benefits under the policy or contract have

been or should have been claimed and paid pursuant to an accident and health

insurance policy or health service contract with respect to items of medical care and

services received by a particular individual for which medical assistance coverage

would otherwise be available.

3. The department of health and human services shall, in consultation with the

commissioner, establish guidelines:

a. For the method of requesting and furnishing appropriate information, the time in

which the information is to be provided, and method of reimbursing insurance

companies and nonprofit health service corporations for necessary costs incurred

in furnishing the requested information.

b. To assure that information relating to an individual certified to be an applicant for

or recipient of medical assistance under chapter 50-24.1, furnished to an insurer

or subscriber pursuant to this section, is used only for the purpose of identifying

the records or information requested in such manner so as not to violate section

50-06-15.
N.D. Cent. Code § 26.1-40-15.4 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.4
26.1-40-15.4. Other insurance and priority of payment
Status: in_force

26.1-40-15.4. Other insurance and priority of payment

1. Any damages payable to or for any insured for uninsured or underinsured motorist

coverage must be reduced by:

a. The amount paid, or payable under any workforce safety and insurance or other

similar law, exclusive of nonoccupational disability benefits; and

b. Amounts paid or payable under any valid and collectible motor vehicle medical

payments, personal injury protection insurance, or similar motor vehicle

coverages.

2. Regardless of the number of motor vehicles involved, the number of persons covered

or claims made, vehicles or premiums shown in the policy or premiums paid, the limit

of liability for uninsured motorist or underinsured motorist coverage may not be added

to or stacked upon limits for such coverages applying to other motor vehicles to

determine the amount of coverage available to an insured in any one accident.

3. If an insured is entitled to uninsured motorist or underinsured motorist coverage under

more than one policy, the maximum amount such insured may recover may not

exceed the highest limit of such coverage provided for any one vehicle under any one

policy. If more than one policy applies, the following order of priority applies:

a. A policy covering a motor vehicle occupied by the injured person at the time of

the accident.

b. A policy covering a motor vehicle not involved in the accident under which the

injured person is a named insured.

c. A policy covering a motor vehicle not involved in the accident under which the

injured person is an insured other than a named insured.

Coverage available under a lower priority policy applies only to the extent it exceeds

the coverage of a higher priority policy.
N.D. Cent. Code § 26.1-45-12 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-12
26.1-45-12. Penalties
Status: in_force

26.1-45-12. Penalties

In addition to any other penalties provided by the laws of this state, any insurer and any

insurance producer found to have violated any requirement of this title relating to the regulation

of long-term care insurance or the marketing of such insurance shall be subject to a fine of up to

three times the amount of any commissions paid for each policy involved in the violation or up to

ten thousand dollars, whichever is greater.
N.D. Cent. Code § 26.1-47-02.4 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-02.4
26.1-47-02.4. Method of dental payment option
Status: in_force

26.1-47-02.4. Method of dental payment option

1. A preferred provider arrangement may not include restrictions on methods of payment

from the dental insurer or third-party payor vendor to the dental provider in which the

only acceptable payment method is a credit card payment.

2. If initiating or changing payments to a dental provider using electronic funds transfer

payments, including virtual credit card payments, a dental insurer or the contracted

vendor shall:

a. Notify the dental provider if any fees are associated with a particular payment

method;

b. Advise the dental provider of the available methods of payment and provide clear

instructions to the dental provider as to how to select an alternative payment

method that does not impose fees or similar charges on the provider; and

c. Notify the dental provider if the dental insurer is sharing a part of the profit of the

fee charged by the credit card company to pay the claim.

3. A dental provider or a contracted vendor, which initiates or changes payments to a

dental provider through the automated clearinghouse network, under title 45, Code of

Federal Regulations, sections 162.1601 and 162.1602, may not charge a fee solely to

transmit the payment to a dental provider unless the dental provider has consented to

the fee. A dental provider's agent may charge reasonable fees if transmitting an

automated clearinghouse network payment related to transaction management, data

management, portal services, and other value-added services in addition to the bank

transmittal.

4. As used in this section, "dental insurer" and "dental provider" have the same meaning

as in section 26.1-36.9-01.
N.D. Cent. Code § 26.1-31.2-03 — ND Code / Title 26.1 / Chapter 26.1-31.2 / Section 26.1-31.2-03
26.1-31.2-03. Qualified United States financial institutions
Status: in_force

26.1-31.2-03. Qualified United States financial institutions

1. For purposes of subsection 3 of section 26.1-31.2-02, a "qualified United States

financial institution" means an institution that:

a. Is organized, or in case of a United States office of a foreign banking

organization, is licensed, under the laws of the United States or any state thereof;

b. Is regulated, supervised, and examined by United States federal or state

authorities having regulatory authority over banks and trust companies; and

c. Has been determined by either the commissioner, or the securities valuation

office of the national association of insurance commissioners, to meet such

standards of financial condition and standing as are considered necessary and

appropriate to regulate the quality of financial institutions whose letters of credit

will be acceptable to the commissioner.

2. A "qualified United States financial institution" means, for purposes of those provisions

of this chapter specifying those institutions that are eligible to act as a fiduciary of a

trust, an institution that:

a. Is organized, or in the case of a United States branch or agency office of a

foreign banking organization, is licensed, under the laws of the United States or

any state thereof and has been granted authority to operate with fiduciary

powers; and

b. Is regulated, supervised, and examined by federal or state authorities having

regulatory authority over banks and trust companies.
N.D. Cent. Code § 26.1-06.1-37 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-37
26.1-06.1-37. Special provisions for third-party claims
Status: in_force

26.1-06.1-37. Special provisions for third-party claims

1. Whenever any third party asserts a cause of action against an insured of an insurer in

liquidation, the third party may file a claim with the liquidator.

2. Whether or not the third party files a claim, the insured may file a claim in the

liquidation. If the insured fails to file a claim by the date for filing claims specified in the

order of liquidation or within sixty days after mailing of the notice required by section

26.1-06.1-21, whichever is later, the insured is an unexcused late filer.

3. The liquidator shall make recommendations to the court under section 26.1-06.1-41,

for the allowance of an insured's claim under subsection 2 after consideration of the

probable outcome of any pending action against the insured on which the claim is

based, the probable damages recoverable in the action, and the probable costs and

expenses of defense. After allowance by the court, the liquidator shall withhold any

dividends payable on the claim, pending the outcome of litigation and negotiation with

the insured. Whenever it seems appropriate, the liquidator shall reconsider the claim

on the basis of additional information and amend recommendations made to the court.

The insured must be afforded the same notice and opportunity to be heard on all

changes in the recommendation as in its initial determination. The court may amend its

allowance as it deems appropriate. As claims against the insured are settled or barred,

the insured must be paid from the amount withheld the same percentage dividend as

was paid on other claims of like property, based on the lesser of:

a. The amount actually recovered from the insured by action or paid by agreement

plus the reasonable costs and expenses of defense; or

b. The amount allowed on the claims by the court.

After all claims are settled or barred, any sum remaining from the amount withheld

must revert to the undistributed assets of the insurer. Delay in final payment under this

subsection is not a reason for unreasonable delay of final distribution and discharge of

the liquidator.

4. If several claims founded upon one policy are filed, whether by third parties or as

claims by the insured under this section, and the aggregate allowed amount of the

claims to which the same limit of liability in the policy is applicable exceeds that limit,

each claim as allowed must be reduced in the same proportion so that the total equals

the policy limit. Claims by the insured must be evaluated as in subsection 3. If any

insured's claim is subsequently reduced under subsection 3, the amount thus freed

must be apportioned ratably among the claims which have been reduced under this

subsection.

5. No claim may be presented under this section if it is or may be covered by any

guaranty association or foreign guaranty association.
N.D. Cent. Code § 26.1-06.1-51 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-51
26.1-06.1-51. Domiciliary liquidators in other states
Status: in_force

26.1-06.1-51. Domiciliary liquidators in other states

1. The domiciliary liquidator of an insurer domiciled in a reciprocal state, except as to

special deposits and security on secured claims under subsection 3 of section

26.1-06.1-52, is vested by operation of law with the title to all of the assets, property,

contracts and rights of action, insurance producers' balances, and all of the books,

accounts, and other records of the insurer located in this state. The date of vesting

must be the date of the filing of the petition, if that date is specified by the domiciliary

law for the vesting of property in the domiciliary state. Otherwise, the date of vesting

must be the date of entry of the order directing possession to be taken. The domiciliary

liquidator shall have the immediate right to recover balances due from insurance

producers and to obtain possession of the books, accounts, and other records of the

insurer located in this state. The domiciliary liquidator shall also have the right to

recover all other assets of the insurer located in this state, subject to section

26.1-06.1-52.

2. If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state,

the commissioner of this state is vested by operation of law with the title to all of the

property, contracts and right of action, and all of the books, accounts, and other

records of the insurer located in this state, at the same time that the domiciliary

liquidator is vested with title in the domicile. The commissioner of this state may

petition for a conservation or liquidation order under section 26.1-06.1-49 or

26.1-06.1-50, or for an ancillary receivership under section 26.1-06.1-52, or after

approval by the district court may transfer title to the domiciliary liquidator, as the

interests of justice and the equitable distribution of the assets require.

3. Claimants residing in this state may file claims with the liquidator or ancillary receiver,

if any, in this state or with the domiciliary liquidator, if the domiciliary law permits. The

claims must be filed on or before the last date fixed for the filing of claims in the

domiciliary liquidation proceedings.
N.D. Cent. Code § 26.1-21-04 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-04
26.1-21-04. Attorney general is attorney for fund
Status: in_force

26.1-21-04. Attorney general is attorney for fund

The attorney general shall act as legal counsel for the office in any proceeding to which the

office is a party on behalf of the fund.
N.D. Cent. Code § 26.1-45-09 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-09
26.1-45-09. Right to return policy - Outline of coverage required - Contents of certificate - Summary of policy provisions - Report of benefits status
Status: in_force

26.1-45-09. Right to return policy - Outline of coverage required - Contents of

certificate - Summary of policy provisions - Report of benefits status.

1. Long-term care insurance applicants have the right to return the policy or certificate

within thirty days of the date of its delivery or within thirty days of its effective date,

whichever occurs later, and to have the premium refunded if, after examination of the

policy or certificate, the applicant is not satisfied for any reason. Long-term care

insurance policies and certificates must have a notice prominently printed on the first

page or attached thereto stating in substance that the applicant has the right to return

the policy or certificate within thirty days of the date of its delivery or within thirty days

of its effective date, whichever occurs later, and to have the premium refunded if, after

examination of the policy or certificate, other than a certificate issued pursuant to a

policy issued to a group defined in subdivision a of subsection 3 of section 26.1-45-01,

the applicant is not satisfied for any reason.

2. a. An outline of coverage must be delivered to a prospective applicant for long-term

care insurance at the time of initial solicitation through means that prominently

direct the attention of the recipient to the document and its purpose.

(1) The commissioner shall prescribe a standard format, including style,

arrangement, overall appearance, and the content of an outline of coverage.

(2) In the case of insurance producer solicitations, an insurance producer must

deliver the outline of coverage prior to the presentation of an application or

enrollment form.

(3) In the case of direct response solicitations, the outline of coverage must be

presented in conjunction with any application or enrollment form.

(4) In the case of a policy issued to a group defined in subdivision a of

subsection 3 of section 26.1-45-01, an outline of coverage is not required to

be delivered, provided that the information described in paragraphs 1

through 7 of subdivision b is contained in other materials relating to

enrollment. Upon request, these other materials must be made available to

the commissioner.

b. The outline of coverage must include:

(1) A description of the principal benefits and coverage provided in the policy.

(2) A statement of the principal exclusions, reductions, and limitations contained

in the policy.

(3) A statement of the terms under which the policy or certificate, or both, may

be continued in force or discontinued, including any reservation in the policy

of a right to change premium. Continuation or conversion provisions of

group coverage must be specifically described.

(4) A statement that the outline of coverage is a summary only, not a contract of

insurance, and that the policy or group master policy contains the governing

contractual provisions.

(5) A description of the terms under which the policy or certificate may be

returned and premium refunded.

(6) A brief description of the relationship of cost of care and benefits.

(7) A statement that discloses to the policyholder or certificate holder whether

the policy is intended to be a federally tax-qualified long-term care insurance

contract under 7702B(b) of the Internal Revenue Code of 1986, as

amended.

3. A certificate issued pursuant to a group long-term care insurance policy which policy is

delivered or issued for delivery in this state must include:

a. A description of the principal benefits and coverage provided in the policy.

b. A statement of the principal exclusions, reductions, and limitations contained in

the policy.

c. A statement that the group master policy determines governing contractual

provisions.

4. If an application for a long-term care insurance contract or certificate is approved and

issued, the issuer, directly or through an authorized representative, shall deliver the

contract or certificate of insurance to the applicant no later than thirty days after the

date of approval.

5. At the time of policy delivery, a policy summary must be delivered for an individual life

insurance policy which provides long-term care benefits within the policy or by rider. In

the case of direct response solicitations, the insurer shall deliver the policy summary

upon the applicant's request, but regardless of request shall make such delivery no

later than at the time of policy delivery. In addition to complying with all applicable

requirements, the summary must also include:

a. An explanation of how the long-term care benefit interacts with other components

of the policy, including deductions from death benefits;

b. An illustration on the amount of benefits, the length of benefit, and the guaranteed

lifetime benefits, if any, for each covered person;

c. Any exclusions, reductions, and limitations on benefits of long-term care;

d. A statement as to whether a long-term care inflation protection option is available

under this policy;

e. If applicable to the policy type, the summary shall also include:

(1) A disclosure of the effects of exercising other rights under the policy;

(2) A disclosure of guarantees relating to long-term care costs of insurance

charges; and

(3) Current and projected maximum lifetime benefits; and

f. The provisions of the policy summary listed above may be incorporated into a

basic illustration or into a life insurance policy summary delivered to the

consumer.

6. Any time a long-term care benefit, funded through a life insurance vehicle by the

acceleration of the death benefit, is in benefit payment status a monthly report must be

provided to the policyholder. Such report must include:

a. Any long-term care benefits paid out during the month;

b. An explanation of any changes in the policy, e.g., death benefits or cash values,

due to long-term care benefits being paid out; and

c. The amount of long-term care benefits existing or remaining.

7. If a claim under a long-term care insurance contract is denied, the issuer shall, within

sixty days of the date of a written request by the policyholder or certificate holder, or a

representative thereof:

a. Provide a written explanation of the reasons for the denial; and

b. Make available all information directly related to the denial.
N.D. Cent. Code § 26.1-25-01 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-01
26.1-25-01. Purpose of chapter - Construction
Status: in_force

26.1-25-01. Purpose of chapter - Construction

The purpose of this chapter is to promote the public welfare by regulating insurance rates

so that they are not excessive, inadequate, or unfairly discriminatory, and to authorize and

regulate limited cooperative action among insurers in ratemaking-related activities and in other

matters within the scope of this chapter. Nothing in this chapter is intended to prohibit or

discourage reasonable competition, or to prohibit, or encourage except to the extent necessary

to accomplish the aforementioned purpose, uniformity in rating systems, rating plans, or

practices. This chapter must be liberally interpreted to carry into effect this section.
N.D. Cent. Code § 26.1-09-04 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-04
26.1-09-04. Subscribers to file verified declaration with commissioner - Contents
Status: in_force

26.1-09-04. Subscribers to file verified declaration with commissioner - Contents

The subscribers contracting among themselves to conduct a reciprocal or interinsurance

exchange through their attorney, shall file with the commissioner a declaration verified by the

oath of the attorney, or when the attorney is a corporation, by the oath of a chief officer thereof,

setting forth:

1. The name of the attorney and the name or designation under which contracts are

issued. The name or designation may not be so similar to any name or designation

adopted by any attorney or any insurance organization in the United States which was

writing the same class of insurance prior to the adoption of the name or designation as

to confuse or deceive.

2. The kind or kinds of insurance to be effected or exchanged.

3. A copy of the form of policy, contract, or agreement under or by which such insurance

is to be effected or exchanged.

4. A copy of the form of the power of attorney or other authority of the attorney under

which the insurance is to be effected or exchanged.

5. The location of the office from which the contracts or agreements are to be issued.

6. That applications have been made for indemnity upon at least one hundred separate

risks aggregating not less than one million five hundred thousand dollars as

represented by executed contracts or bona fide applications to become concurrently

effective.

7. That assets conforming to section 26.1-09-08 are in the possession of the attorney

and are available for payment of losses.
N.D. Cent. Code § 26.1-06.2-10 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-10
26.1-06.2-10. Immunity
Status: in_force

26.1-06.2-10. Immunity

There is no liability on the part of, and no cause of action of any nature may arise against,

the commissioner or the department or its employees or agents for any action taken by them in

the performance of their powers and duties under this chapter.
N.D. Cent. Code § 26.1-38.1-14 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-14
26.1-38.1-14. Immunity
Status: in_force

26.1-38.1-14. Immunity

There is no liability on the part of and no cause of action of any nature may arise against

any member insurer or its agents or employees, the association or its agents or employees,

members of the board of directors, or the commissioner or the commissioner's representatives,

for any action or omission by them in the performance of their powers and duties under this

chapter. This immunity extends to the participation of any organization of one or more other

state associations of similar purposes and to any such organization and its agents or

employees.
N.D. Cent. Code § 26.1-12.1-07 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-07
26.1-12.1-07. Action by commissioner
Status: in_force

26.1-12.1-07. Action by commissioner

Within sixty days after the conclusion of the public hearing, or within the sixty days after

filing the plan of reorganization if by mutual agreement the hearing is waived, unless there is a

mutual agreement by the commissioner and the reorganizing insurer to extend such time, the

commissioner shall enter findings of fact, conclusions of law, and an order either approving,

conditionally approving, or disapproving the plan. An approval or conditional approval of a plan

of reorganization expires if the reorganization is not completed within one hundred eighty days

after the approval or conditional approval, unless the time period is extended by the

commissioner upon a showing of good cause.
N.D. Cent. Code § 26.1-12.2-12 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-12
26.1-12.2-12. Failure to give notice
Status: in_force

26.1-12.2-12. Failure to give notice

If the converting mutual company complies substantially and in good faith with the notice

requirements of this chapter, the failure of the converting mutual company to send a member

the required notice does not impair the validity of any action taken under this chapter.
N.D. Cent. Code § 26.1-28-02 — ND Code / Title 26.1 / Chapter 26.1-28 / Section 26.1-28-02
26.1-28-02. Sale of insurance through vending machines under certain conditions
Status: in_force

26.1-28-02. Sale of insurance through vending machines under certain conditions

Insurance producers licensed by the commissioner under this title to solicit applications for

and to sell policies of personal travel accident insurance providing benefits for accidental bodily

injury or accidental death may also solicit applications for and issue or sell such insurance by

means of vending machines supervised by them and placed in locations for the convenience of

the traveling public, upon the following conditions:

1. That each policy is reasonably suited for sale and issuance through a vending

machine, and that use of a vending machine in a proposed location would be of

material convenience to the traveling public.

2. That the type of vending machine proposed to be used is reasonably suitable and

practical for the purpose.

3. That reasonable means, as determined by the commissioner, are provided for

informing the prospective purchaser of the benefits, limitations, and exclusions of the

policy, the premium rates, the name and address of the insurance producer, and the

name and home office address of the insurer.

4. That the vending machine is constructed and operated to retain, or is provided with a

suitable place for deposit and safekeeping of, a copy of the application, which shows

the date of the application, name and address of the applicant and the beneficiary, and

the amount of insurance.

5. That no policy of insurance sold through a vending machine may be for a period of

time longer than the duration of a specified one-way or round trip not exceeding one

hundred eighty days.

6. That the vending machine has provided on it or immediately adjacent thereto, in a

prominent location, adequate envelopes for use of purchasers in mailing policies

vended through the machine, or that the policy itself, if designed to permit the

procedure, may be mailed without an envelope; provided, however, that the

commissioner may modify or waive this requirement, by a writing delivered to the

insurance producer.

7. That each vending machine is supervised, inspected, and tested by the insurance

producer with such frequency as may reasonably be required by the commissioner,

and if any machine is not in good working condition the insurance producer shall

promptly cause a notice to be displayed on the machine that the machine is out of

order, and cause the machine to be promptly removed from service until it is in proper

working order.

8. That prompt refund by the insurance producer is provided to each applicant or

prospective applicant of money deposited in any defective vending machine and for

which no insurance, or a less amount than paid for, is actually received.

The commissioner may adopt by rule additional conditions for types and locations of vending

machines, their maintenance and operation, and the methods to be used by the insurance

producer in the solicitation and sale of insurance by means of vending machines as are

reasonable and necessary.
N.D. Cent. Code § 26.1-33.4-04 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-04
26.1-33.4-04. Contract requirements
Status: in_force

26.1-33.4-04. Contract requirements

1. A person may not use any form of life settlement contract in this state unless the

contract has been filed with and approved, if required, by the commissioner in a

manner that conforms with the filing procedures and any time restrictions or deeming

provisions, if any, for life insurance forms, policies, and contracts.

2. An insurer may not require, as a condition of responding to a request for verification of

coverage or in connection with the transfer of a policy pursuant to a life settlement

contract, that the owner, insured, provider, or broker sign any form, disclosure,

consent, waiver, or acknowledgment that has not been expressly approved by the

commissioner for use in connection with life settlement contracts in this state.

3. A person may not use a life settlement contract form or provide to an owner a

disclosure statement form in this state unless first filed with and approved by the

commissioner. The commissioner shall disapprove a life settlement contract form or

disclosure statement form if, in the commissioner's opinion, the contract or provisions

contained therein fail to meet the requirements of sections 26.1-33.4-07, 26.1-33.4-08,

and 26.1-33.4-10 and subsection 2 of section 26.1-33.4-14 or are unreasonable,

contrary to the interests of the public, or otherwise misleading or unfair to the owner.

The commissioner may require the submission of advertising material.
N.D. Cent. Code § 26.1-02-26 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-26
26.1-02-26. Accounting practices and procedures manual
Status: in_force

26.1-02-26. Accounting practices and procedures manual

The commissioner shall adopt by rule the accounting practices and procedures manual

published by the national association of insurance commissioners. The provisions of the

accounting practices and procedures manual adopted by the commissioner govern the statutory

accounting practices of all insurance companies, including health maintenance organizations,

licensed to do business in this state. Any reference to the accounting practices and procedures

manual in this title means the manual the commissioner adopts by rule, unless specifically

stated otherwise.
N.D. Cent. Code § 26.1-02-23 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-23
26.1-02-23. Revocation of company's authority to do business in this state
Status: in_force

26.1-02-23. Revocation of company's authority to do business in this state

The commissioner shall revoke the certificate of authority of an insurance, bonding, surety,

or indemnity company immediately if, at any time after examination, the commissioner has

reason to believe that:

1. Any annual statement or other report required to be submitted by an officer or agent of

the company pursuant to this title is false; or

2. The company is practicing discrimination against individual risks in the issue or

cancellation of policies, bonds, or other insurance contracts or corporate suretyship.
N.D. Cent. Code § 26.1-35-02 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-02
26.1-35-02. Computation of minimum standard
Status: in_force

26.1-35-02. Computation of minimum standard

Except as provided in sections 26.1-35-03, 26.1-35-04, and 26.1-35-11, the minimum

standard for the valuation of all life or accident insurance policies and contracts issued prior to

July 1, 1977, are those provided by sections 26-03-33, 26-03-34, and 26-10-01 as they existed

on June 30, 1977. Except as otherwise provided in sections 26.1-35-03, 26.1-35-04, and

26.1-35-11, the minimum standard for the valuation of all life or accident insurance policies and

contracts issued after June 30, 1977, is the commissioners reserve valuation methods defined

in sections 26.1-35-05, 26.1-35-06, 26.1-35-09, and 26.1-35-11, five and one-half percent

interest for single premium life insurance policies and four and one-half percent interest for all

other such policies and contracts issued after June 30, 1977, other than annuity and pure

endowment contracts, and the following tables:

1. For ordinary policies of life insurance issued on the standard basis, excluding any

disability and accidental death benefits in the policies, the commissioners 1941

standard ordinary mortality table for policies issued before the operative date of

section 26.1-33-22, the commissioners 1958 standard ordinary mortality table for

policies issued on or after the operative date of section 26.1-33-22 and prior to the

earlier of a specified date filed by an insurer with the commissioner in a written notice

of the insurer's election to comply with this chapter or January 1, 1989, provided that

for any category of policies issued on female risks, all modified net premiums and

present values referred to in this chapter may be calculated according to an age not

more than six years younger than the actual age of the insured; and for policies issued

on or after the earlier of a specified date filed by an insurer with the commissioner in a

written notice of the insurer's election to comply with this chapter or January 1, 1989:

a. The commissioners 1980 standard ordinary mortality table;

b. At the election of the insurer for any one or more specified plans of life insurance,

the commissioners 1980 standard ordinary mortality table with ten-year select

mortality factors; or

c. Any ordinary mortality table, adopted after 1980 by the national association of

insurance commissioners, that is approved by rule adopted by the commissioner

for use in determining the minimum standard of valuation for the policies.

2. For industrial life insurance policies issued on the standard basis, excluding any

disability and accidental death benefits in the policies, the 1941 standard industrial

mortality table for policies issued before the operative date of section 26.1-33-23, and

for policies issued on or after the operative date of section 26.1-33-23, the

commissioners 1961 standard industrial mortality table or any industrial mortality table,

adopted after 1980 by the national association of insurance commissioners, that is

approved by rule adopted by the commissioner for use in determining the minimum

standard of valuation for the policies.

3. For individual annuity and pure endowment contracts, excluding any disability and

accidental death benefits in the policies, the 1937 standard annuity mortality table, or

at the option of the insurer, the annuity mortality table for 1949, ultimate, or any

modification of either of these tables approved by the commissioner.

4. For group annuity and pure endowment contracts, excluding any disability and

accidental death benefits in the policies, the group annuity mortality table for 1951, a

modification of the table approved by the commissioner, or at the option of the insurer,

any of the tables or modifications of tables specified for individual annuity and pure

endowment contracts.

5. For total and permanent disability benefits in or supplementary to policies or contracts,

for policies or contracts issued after December 31, 1965, the tables of period 2

disablement rates and the 1930 to 1950 termination rates of the 1952 disability study

of the society of actuaries, with due regard to the type of benefit or any tables of

disablement rates and termination rates, adopted after 1980 by the national

association of insurance commissioners, that are approved by rule adopted by the

commissioner for use in determining the minimum standard of valuation for those

policies; for policies or contracts issued after December 31, 1960, and before

January 1, 1966, either those tables or, at the option of the insurer, the class (3)

disability table (1926); and for policies issued before January 1, 1961, the class (3)

disability table (1926). The table must, for active lives, be combined with a mortality

table permitted for calculating the reserves for life insurance policies.

6. For accidental death benefits in or supplementary to policies issued after December

31, 1965, the 1959 accidental death benefits table or any accidental death benefits

table, adopted after 1980 by the national association of insurance commissioners, that

is approved by rule adopted by the commissioner for use in determining the minimum

standard of valuation for the policies; for policies issued after December 31, 1960, and

before January 1, 1966, either that table or, at the option of the insurer, the

intercompany double indemnity mortality table; and for policies issued before January

1, 1961, the intercompany double indemnity mortality table. Either table must be

combined with a mortality table for calculating the reserves for life insurance policies.

7. For group life insurance, life insurance issued on the substandard basis and other

special benefits, any tables approved by the commissioner.
N.D. Cent. Code § 26.1-33.4-05 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-05
26.1-33.4-05. Reporting requirements and privacy
Status: in_force

26.1-33.4-05. Reporting requirements and privacy

1. For any policy settled within five years of policy issuance, each provider shall file with

the commissioner before March first of each year an annual statement containing such

information as the commissioner may prescribe by regulation. In addition to any other

requirements, the annual statement must specify the total number, aggregate face

amount, and life settlement proceeds of policies settled during the immediately

preceding calendar year, together with a breakdown of the information by policy issue

year. The annual statement also must include the names of the insurance companies

whose policies have been settled and the brokers that have settled said policies.

a. Such information must be limited to only those transactions where the insured is

a resident of this state and may not include individual transaction data regarding

the business of life settlements or information that there is a reasonable basis to

believe could be used to identify the owner or the insured.

b. Every provider that willfully fails to file an annual statement as required in this

section, or willfully fails to reply within thirty days to a written inquiry by the

commissioner in connection therewith, shall, in addition to other penalties

provided by this chapter, be subject, upon due notice and opportunity to be heard,

to a penalty of up to two hundred fifty dollars per day of delay, not to exceed

twenty-five thousand dollars in the aggregate, for each such failure.

2. Except as otherwise allowed or required by law, a provider, broker, insurance

company, insurance producer, information bureau, rating agency or company, or any

other person with actual knowledge of an insured's identity, may not disclose the

identity of an insured or information that there is a reasonable basis to believe could

be used to identify the insured or the insured's financial or medical information to any

other person unless the disclosure:

a. Is necessary to effect a life settlement contract between the owner and a provider

and the owner and insured have provided prior written consent to the disclosure;

b. Is necessary to effectuate the sale of life settlement contracts, or interests

therein, as investments, provided the sale is conducted in accordance with

applicable state and federal securities law, and provided further that the owner

and the insured have both provided prior written consent to the disclosure;

c. Is provided in response to an investigation or examination by the commissioner or

any other governmental officer or agency or pursuant to the requirements of

section 26.1-33.4-12;

d. Is a term or condition to the transfer of a policy by one provider to another

provider, in which case the receiving provider shall comply with the confidentiality

requirements of subsection 2 of section 26.1-33.4-05;

e. Is necessary to allow the provider or broker or its authorized representative to

make contacts for the purpose of determining health status. For the purposes of

this section, the term "authorized representative" does not include any person

that has or may have any financial interest in the settlement contract other than a

provider, licensed broker, financing entity, related provider trust, or special

purpose entity; further, a provider or broker shall require its authorized

representative to agree in writing to adhere to the privacy provisions of this

chapter; or

f. Is required to purchase stop-loss coverage.

3. Nonpublic personal information solicited or obtained in connection with a proposed or

actual life settlement contract is subject to the provisions applicable to financial

institutions under the federal Gramm-Leach-Bliley Act [Pub. L. 106-102] and all other

state and federal laws relating to confidentiality of nonpublic personal information.
N.D. Cent. Code § 26.1-33-34 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-34
26.1-33-34. Notice of transfer of life policy unnecessary - Exception
Status: in_force

26.1-33-34. Notice of transfer of life policy unnecessary - Exception

Notice to an insurer of a transfer or bequest of a life insurance policy is not necessary to

preserve the validity of the policy unless notice is required by the policy.
N.D. Cent. Code § 26.1-40-07 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-07
26.1-40-07. Proof of notice of termination
Status: in_force

26.1-40-07. Proof of notice of termination

1. Proof of mailing a notice of cancellation or a notice of an intention not to renew, or

business records of the notice of the insured's willingness to renew, must be retained

for a period of one year by the insurer or insurance producer giving the notice.

2. Sufficient proof of mailing a notice under this section is established if the producer or

insurer produces:

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

address shown on the insured's policy; or

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

insured at the address shown on the insured's policy using:

(1) IMb tracing; or

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

insured, the address shown on the insured's policy, and the date of mailing.
N.D. Cent. Code § 26.1-12.2-10 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-10
26.1-12.2-10. Corporate existence
Status: in_force

26.1-12.2-10. Corporate existence

1. On the effective date of the conversion, the corporate existence of the converting

mutual company continues in the converted stock company. On the effective date of

the conversion, all the assets, rights, franchises, and interests of the converting mutual

company in and to every species of property, real, personal, and mixed, and any

accompanying things in action, are vested in the converted stock company without any

deed or transfer and the converted stock company assumes all the obligations and

liabilities of the converting mutual company.

2. Unless otherwise specified in the plan of conversion, the individuals who are directors

and officers of the converting mutual company on the effective date of the conversion

shall serve as directors and officers of the converted stock company until new directors

and officers of the converted stock company are elected pursuant to the certificate of

incorporation and bylaws of the converted stock company.
N.D. Cent. Code § 26.1-26.5-05 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-05
26.1-26.5-05. Liability of controlling insurance broker in the event of insolvency of controlled insurer
Status: in_force

26.1-26.5-05. Liability of controlling insurance broker in the event of insolvency of

controlled insurer.

If the commissioner has reason to believe that a controlling insurance broker has committed

or is committing an act which could be determined to be a violation, and that the violation

substantially contributed to the insolvency of a controlled insurer, the commissioner or receiver

may maintain a civil action against the controlling insurance broker for all damages caused by

the insurance broker's acts.
N.D. Cent. Code § 26.1-13-05 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-05
26.1-13-05. Bylaws - Contents
Status: repealed

26.1-13-05. Bylaws - Contents

A county mutual insurance company may make bylaws, not inconsistent with the

constitution or laws of this state, necessary to provide for the management of the company's

affairs in accordance with this chapter and to prescribe the duties of the company's officers.

Bylaws may be repealed or amended in the manner provided in this chapter.
N.D. Cent. Code § 26.1-13-23 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-23
26.1-13-23. Loss - Notice - Adjustment - Arbitration - Finality of determination of board of adjustment - Powers of board
Status: in_force

26.1-13-23. Loss - Notice - Adjustment - Arbitration - Finality of determination of

board of adjustment - Powers of board.

Every member of a county mutual insurance company which sustains loss shall notify the

company immediately after the loss is sustained. The company shall assign the loss to be

adjusted in the manner provided in the insurance policy of the company. If the parties are

unable to agree upon the amount of the damage, the claimant and the company each shall

choose a disinterested party to constitute a board of arbitration to settle the loss. If the parties

cannot agree, the parties shall choose a third party to act with the parties. The board of

arbitration may examine witnesses and shall determine all matters in dispute, and the decision

of the arbitration board is final.
N.D. Cent. Code § 26.1-36.4-02 — ND Code / Title 26.1 / Chapter 26.1-36.4 / Section 26.1-36.4-02
26.1-36.4-02. Definitions
Status: in_force

26.1-36.4-02. Definitions

As used in this chapter, the definitions in section 26.1-36.3-01 apply, unless the context

otherwise requires. In addition:

1. "Insurer" means any insurance company, nonprofit health service organization,

fraternal benefit society, or health maintenance organization that provides a plan of

health insurance or health benefits subject to state insurance regulation.

2. "Policy" means any health benefit plan as defined in section 26.1-36.3-01, whether

offered on a group or individual basis. The term does not include an individual

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

defined in section 26.1-36.8-01.
N.D. Cent. Code § 26.1-52-07 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-07
26.1-52-07. Underwriting
Status: in_force

26.1-52-07. Underwriting

A person who has been refused coverage, in writing, by at least five standard carriers based

on an underwriting, claims, or credit history is eligible to apply to the facility for coverage.
N.D. Cent. Code § 26.1-17.1-22 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-22
26.1-17.1-22. Rehabilitation, conservation, or liquidation
Status: in_force

26.1-17.1-22. Rehabilitation, conservation, or liquidation

1. Any rehabilitation, conservation, or liquidation of a prepaid limited health service

organization must be deemed to be the rehabilitation, conservation, or liquidation of an

insurance company and must be conducted pursuant to chapter 26.1-06.1.

2. Prepaid limited health service organizations are not subject to chapter 26.1-38.1, nor

do the protections provided by chapter 26.1-38.1 apply to any individuals entitled to

receive limited health services from a prepaid limited health service organization.
N.D. Cent. Code § 26.1-26-16.2 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-16.2
26.1-26-16.2. Payment of commissions by brokers - Limitations
Status: repealed

26.1-26-16.2. Payment of commissions by brokers - Limitations

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-12.2-11 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-11
26.1-12.2-11. Conflict of interest
Status: in_force

26.1-12.2-11. Conflict of interest

1. A director, officer, agent, or employee of the converting mutual company may not

receive any fee, commission, or other valuable consideration, other than such person's

usual regular salary or compensation, for aiding, promoting, or assisting in a

conversion under this chapter. This provision does not prohibit the payment of

reasonable fees and compensation to attorneys, accountants, financial advisors, and

actuaries for services performed in the independent practice of their professions, even

if the attorney, accountant, financial advisor, or actuary is also a director or officer of

the converting mutual company.

2. For a period of two years after the effective date of the conversion, a converted stock

company may not implement any nontax-qualified stock benefit plan unless the plan is

approved by a majority of votes cast at a duly convened meeting of shareholders held

not less than six months after the effective date of the conversion.

3. All the costs and expenses connected with a plan of conversion must be paid for or

reimbursed by the converting mutual company or the converted stock company.

However, if the plan of conversion provides for participation by another entity in the

plan pursuant to subparagraph a of paragraph 2 of subdivision c of subsection 1 of

section 26.1-12.2-03, such entity may pay for or reimburse all or a portion of the costs

and expenses connected with the plan of conversion.
N.D. Cent. Code § 26.1-01-03.1 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-03.1
26.1-01-03.1. Cease and desist authority - Hearing - Failure to appear
Status: in_force

26.1-01-03.1. Cease and desist authority - Hearing - Failure to appear

The commissioner may issue an order to cease and desist and notice of opportunity for

hearing when it appears that any person is engaged in an act or practice which violates or may

lead to a violation of this title. Any party aggrieved by the commissioner's order may make

written application for a hearing on the order within thirty days of the date of the order. The

application for a hearing must briefly state the respects in which the applicant is aggrieved by

the order and the grounds for relief to be relied upon at the hearing. A hearing must be held not

later than ten days after an application for hearing is received unless a delay is requested by all

persons named in the order. The commissioner, within thirty days after the hearing, shall issue

an order vacating the cease and desist order or making the cease and desist order permanent,

as the facts require. The failure of any named person to appear at any proper hearing under this

section after receiving notice of the hearing will cause that person to be in default and the

allegations contained in the cease and desist order may be deemed to be true and may be used

against the person at the hearing. If no hearing is requested by written application, the

commissioner's order becomes permanent.
N.D. Cent. Code § 26.1-36.5-02 — ND Code / Title 26.1 / Chapter 26.1-36.5 / Section 26.1-36.5-02
26.1-36.5-02. Prohibited practices
Status: in_force

26.1-36.5-02. Prohibited practices

1. No insurer may deny enrollment of a child under the health coverage of the child's

parent on the grounds that:

a. The child was born out of wedlock;

b. The child is not claimed as a dependent on the parent's federal income tax return;

or

c. The child does not reside with the parent or in the insurer's service area.

2. Any provision in an individual or group accident and health insurance policy, nonprofit

health service contract, or group health plan issued by any insurer that conflicts with

subsection 1 is void.
N.D. Cent. Code § 26.1-04-01 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-01
26.1-04-01. Limitation on right to engage in trade
Status: in_force

26.1-04-01. Limitation on right to engage in trade

An insurance company organized under this title may not deal or trade, directly or indirectly,

in the buying or selling of any goods, wares, merchandise, or other commodities whatsoever,

except such as may have been insured by the company and are claimed to be damaged by

reason of the risk insured against or as allowed under this chapter.
N.D. Cent. Code § 26.1-26-16.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-16.1
26.1-26-16.1. Errors and omissions insurance - License requirement for insurance brokers
Status: repealed

26.1-26-16.1. Errors and omissions insurance - License requirement for insurance

brokers.

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-05-08 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-08
26.1-05-08. Stock subscriptions
Status: in_force

26.1-05-08. Stock subscriptions

The individuals associated for the purpose of organizing a stock insurance company under

this chapter, after having filed the articles of incorporation as required by section 26.1-05-06,

may open books for subscriptions to the capital stock of the company and keep the books open

until the full amount specified in the articles of incorporation is subscribed.
N.D. Cent. Code § 26.1-14-06 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-06
26.1-14-06. Minimum surplus
Status: in_force

26.1-14-06. Minimum surplus

The minimum surplus to be maintained by the company must be three hundred thousand

dollars.
N.D. Cent. Code § 26.1-26.9-07 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-07
26.1-26.9-07. Examination and investigation by commissioner
Status: in_force

26.1-26.9-07. Examination and investigation by commissioner

If the commissioner believes this chapter has been violated, the commissioner, at the

expense of the insurer involved, may examine, at the offices of the insurer or insurance

producer, whether located within or outside this state, all books, records, and papers of the

insurer or insurance producer, and may examine under oath, the officers, managers, and

insurance producer of the insurer, or the insured, regarding the violation.
N.D. Cent. Code § 26.1-30-21 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-21
26.1-30-21. Disapproval of form by commissioner - Notice and hearing
Status: in_force

26.1-30-21. Disapproval of form by commissioner - Notice and hearing

1. If the commissioner disapproves any form, the commissioner shall notify the company

or organization which filed the form within sixty days after filing or within the additional

period provided for in section 26.1-30-20 and provide written notice of disapproval of

the form, specifying the reasons for disapproval and stating that a hearing may be

requested in writing within forty-five days. No company or organization may issue any

insurance policy in the form which has been disapproved. If a hearing is requested, the

commissioner may suspend or postpone the effective date of disapproval.

2. The commissioner may, at any time after a hearing of which not less than twenty days'

written notice has been given to the insurer, withdraw approval of any form if it

contains a provision which is unjust, unfair, inequitable, misleading, or deceptive, or on

any of the grounds stated in this title. It is unlawful for the insurer to issue the form or

use it in connection with any policy after the effective date of withdrawal of approval.

The notice of any hearing called under this subsection must specify the matters to be

considered at the hearing and any decision affirming disapproval or directing

withdrawal of approval under this section must be in writing and must specify the

reasons for the decision.
N.D. Cent. Code § 26.1-42.1-03 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-03
26.1-42.1-03. Creation of the association
Status: in_force

26.1-42.1-03. Creation of the association

A nonprofit unincorporated legal entity known as the North Dakota insurance guaranty

association is created. Every insurer defined as a member insurer in section 26.1-42.1-02 shall

be and remain a member of the association as a condition of that insurer's authority to transact

insurance in this state. The association shall perform association functions under a plan of

operation established and approved under section 26.1-42.1-05 and shall exercise association

powers through a board of directors established under section 26.1-42.1-04.
N.D. Cent. Code § 26.1-03-16 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-16
26.1-03-16. Penalty for not making statement
Status: in_force

26.1-03-16. Penalty for not making statement

Any insurance company doing business in this state which neglects to make and file any

statement in the manner and within the time prescribed in this chapter forfeits one hundred

dollars for each day's neglect, and upon notice by the commissioner to that effect, its authority

to do new business ceases during the default. Any new business done by an insurance

company after it has neglected to make a required statement is in violation of law. The

commissioner may grant an insurance company an extension beyond the date designated in

this section and may waive or reduce any penalty during the extension, upon a showing of good

cause by the insurance company.
N.D. Cent. Code § 26.1-13-16 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-16
26.1-13-16. Liability insurance contracts - Limitations
Status: in_force

26.1-13-16. Liability insurance contracts - Limitations

Any county mutual insurance company may make insurance contracts against loss,

expense, or liability by reason of bodily injury or death by accident, disability, sickness, or

disease suffered by others for which the insured may be liable or may have assumed liability,

except no liability insurance contracts against any or all loss or expense resulting from the

ownership, maintenance, or use of any motor vehicle normally operated, intended to be

operated, or designed for use, upon any highway, road, or street in this state, may be made.
N.D. Cent. Code § 26.1-17.1-13 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-13
26.1-17.1-13. Examination of organization
Status: in_force

26.1-17.1-13. Examination of organization

1. For purposes of examination, expenses of examination, and tax credits therefor, each

prepaid limited health service organization is subject to the laws applicable to

insurance companies.

2. In lieu of such examination, the commissioner may accept the report of an examination

made by the commissioner of another state.
N.D. Cent. Code § 26.1-12.2-06 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-06
26.1-12.2-06. Minority stock offering by a mutual holding company
Status: in_force

26.1-12.2-06. Minority stock offering by a mutual holding company

A mutual holding company may make a minority stock offering in accordance with the

provisions of chapter 26.1-12.1 or this chapter. A minority stock offering pursuant to chapter

26.1-12.1 may not include the grant of subscription rights to policyholders. Except as otherwise

provided in section 26.1-12.2-05 concerning an alternative plan of conversion, a minority stock

offering pursuant to this chapter must include the grant of subscription rights to policyholders.
N.D. Cent. Code § 26.1-42.1-10 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-10
26.1-42.1-10. Prevention of insolvencies
Status: in_force

26.1-42.1-10. Prevention of insolvencies

To aid in the detection and prevention of insurer insolvencies:

1. The board of directors, upon majority vote, may make recommendations to the

commissioner for the detection and prevention of insurer insolvencies.

2. The board of directors, upon majority vote, may make recommendations to the

commissioner on matters generally related to improving or enhancing regulation for

solvency.

3. The board of directors, at the conclusion of any domestic insurer insolvency in which

the association was obligated to pay covered claims, may prepare a report on the

history and causes of the insolvency, based on the information available to the

association and submit this report to the commissioner.
N.D. Cent. Code § 26.1-06-12 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-12
26.1-06-12. Securities laws
Status: in_force

26.1-06-12. Securities laws

This chapter does not limit or modify any responsibility, authority, power, or jurisdiction

provided in the securities laws of this state.
N.D. Cent. Code § 26.1-17-15 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-15
26.1-17-15. Juvenile's coverage to continue - Conditions
Status: repealed

26.1-17-15. Juvenile's coverage to continue - Conditions

Repealed by S.L. 1985, ch. 316, § 22.
N.D. Cent. Code § 26.1-44-07 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-07
26.1-44-07. Actions against insurers issuing insurance - Venue - Service of process - Time for answer
Status: in_force

26.1-44-07. Actions against insurers issuing insurance - Venue - Service of process -

Time for answer.

Every insurer making insurance under this chapter is deemed to be doing business in this

state as an unlicensed concern and may be sued upon any claim for relief arising under any

policy of insurance so issued and delivered by the insurer. The suit must be brought in the

district court of the county in which the plaintiff resides. Service of summons and complaint in

the suit must be made upon the commissioner in the manner provided by section 26.1-44-04.
N.D. Cent. Code § 26.1-22-15 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-15
26.1-22-15. Collection of premiums and assessments
Status: repealed

26.1-22-15. Collection of premiums and assessments

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-26-29 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-29
26.1-26-29. Failure to pass examination - Re-examination
Status: repealed

26.1-26-29. Failure to pass examination - Re-examination

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-06.1-30 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-30
26.1-06.1-30. Assessments
Status: in_force

26.1-06.1-30. Assessments

1. As soon as practicable but not more than two years from the date of an order of

liquidation under section 26.1-06.1-17 of an insurer issuing assessable policies, the

liquidator shall make a report to the court setting forth:

a. The reasonable value of the assets of the insurer;

b. The insurer's probable total liabilities;

c. The probable aggregate amount of the assessment necessary to pay all claims of

creditors and expenses in full, including expenses of administration and costs of

collecting the assessment; and

d. A recommendation as to whether or not an assessment should be made and in

what amount.

2. a. Upon the basis of the report provided in subsection 1, including any supplements

and amendments thereto, the district court may levy one or more assessments

against all members of the insurer who are subject to assessment.

b. Subject to any applicable legal limits on assessability, the aggregate assessment

must be for the amount that the sum of the probable liabilities, the expenses of

administration, and the estimated cost of collection of the assessment, exceeds

the value of existing assets, with due regard being given to assessments that

cannot be collected economically.

3. After levy of assessment under subsection 2, the liquidator shall issue an order

directing each member who has not paid the assessment pursuant to the order, to

show cause why the liquidator should not pursue a judgment therefor.

4. The liquidator shall give notice of the order to show cause by publication and by

first-class mail to each member liable thereunder mailed to the member's last-known

address as it appears on the insurer's records, at least twenty days before the return

day of the order to show cause.

5. a. If a member does not appear and serve duly verified objections upon the

liquidator on or before the return day of the order to show cause under

subsection 3, the court shall make an order adjudging the member liable for the

amount of the assessment against the member pursuant to subsection 3,

together with costs, and the liquidator shall have a judgment against the member

therefor.

b. If, on or before the return day, the member appears and serves duly verified

objections upon the liquidator, the commissioner may hear and determine the

matter or may appoint a referee to hear it and make such order as the facts

warrant. In the event that the commissioner determines that such objections do

not warrant relief from assessment, the member may request the court to review

the matter and vacate the order to show cause.

6. The liquidator may enforce any order or collect any judgment under subsection 5 by

any lawful means.
N.D. Cent. Code § 26.1-29-16 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-16
26.1-29-16. Matters as to which disclosure is not required
Status: in_force

26.1-29-16. Matters as to which disclosure is not required

Neither party to an insurance contract is bound to communicate information of the matters

following, except in answer to the inquiries of the other:

1. Those that the other knows.

2. Those that in the exercise of ordinary care the other ought to know and the former has

no reason to suppose the other ignorant.

3. Those that the other waives communication.

4. Those that prove or tend to prove the existence of a risk excluded by a warranty and

which are not otherwise material.

5. Those that relate to a risk excepted from the policy and are not otherwise material.
N.D. Cent. Code § 26.1-17.1-24 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-24
26.1-17.1-24. Confidentiality
Status: in_force

26.1-17.1-24. Confidentiality

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

obtained from such person or from any provider by any prepaid limited health service

organization and any contract with providers submitted pursuant to the requirements of

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

except:

a. To the extent that it may be necessary to carry out the purposes of this chapter;

b. Upon the express consent of the enrollee or applicant, provider, or prepaid limited

health service organization, as appropriate;

c. Pursuant to statute or court order for the production of evidence or the discovery

thereof; or

d. In the event of claim or litigation wherein such data or information is relevant.

2. With respect to any information pertaining to the diagnosis, treatment, or health of any

enrollee or applicant, a prepaid limited health service organization is entitled to claim

any statutory privileges against disclosure which the provider who furnished such

information to the prepaid limited health service organization is entitled to claim.

3. In addition, any information provided to the commissioner that constitutes a trade

secret, is privileged information, or is part of a department investigation or examination

must be held in confidence.
N.D. Cent. Code § 26.1-40-16 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-16
26.1-40-16. Exclusion of named persons - Restrictive endorsements
Status: in_force

26.1-40-16. Exclusion of named persons - Restrictive endorsements

By written agreement with the named insured, a private passenger automobile insurance

policy covering an automobile or other motor vehicle registered or principally garaged in this

state may exclude a named individual, individuals, or class of individuals from coverage. The

policy may contain a restrictive endorsement reducing the limits of liability, uninsured motorist

coverage, underinsured motorist coverage, basic no-fault benefits coverage, or collision

coverage while the vehicle is operated by a named individual or class of individuals. However, if

the policy does provide liability coverage to a person named in a restrictive endorsement, the

coverage may not be less than the minimum provided under section 26.1-40-15.2, section

26.1-40-15.3, subsection 2 of section 26.1-41-01, and section 39-16.1-11. If the policy excludes

a named individual, individuals, or class of individuals from all coverage and the named insured

expressly or impliedly consents to the operation of a secured motor vehicle by the excluded

party, the named insured is not relieved of personal liability as provided by subsection 5 of

section 26.1-41-02.
N.D. Cent. Code § 26.1-04-13 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-13
26.1-04-13. Orders and modifications
Status: in_force

26.1-04-13. Orders and modifications

1. If, after hearing, the commissioner determines that the person charged has engaged in

an unfair method of competition or an unfair or deceptive act or practice, the

commissioner shall order the person to cease and desist from engaging in the method

of competition, act, or practice. If the person charged is found to have willfully engaged

in a method of competition, act, or practice in violation of section 26.1-04-03, the

commissioner may order any one or more of the following:

a. Payment of a monetary penalty of not more than one thousand dollars for each

and every act or violation but not to exceed an aggregate penalty of ten thousand

dollars unless the person knew or reasonably should have known that person

was in violation of section 26.1-04-03, in which case the penalty must be not

more than five thousand dollars for each and every act or violation but not to

exceed an aggregate penalty of fifty thousand dollars in any six-month period.

b. Suspension or revocation of the person's license if the person knew or

reasonably should have known that person was in violation of section 26.1-04-03.

2. Until the expiration of the time allowed for an appeal if no appeal has been duly filed

or, if an appeal has been filed, then until the transcript of the record in the proceeding

has been filed in the district court, the commissioner may modify or set aside in whole

or in part any order issued under this section.

3. After the expiration of the time allowed for filing an appeal if no appeal has been duly

filed, the commissioner may, after notice and opportunity for hearing, reopen and alter,

modify, or set aside, in whole or in part, any order issued under this section, whenever

in the commissioner's opinion conditions of fact or of law have so changed as to

require the action or if the public interest shall so require.
N.D. Cent. Code § 26.1-53.1-04 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-04
26.1-53.1-04. Exception to registration for providers giving discounts to own patients
Status: in_force

26.1-53.1-04. Exception to registration for providers giving discounts to own patients

A provider that provides discounts to the provider's own patients, without any cost or fee of

any kind to the patient, is not required to obtain and maintain registration under this chapter as a

discount plan organization.
N.D. Cent. Code § 26.1-15.1-20 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-20
26.1-15.1-20. Nonforfeiture benefits, cash surrender values, certificate loans, and other options
Status: in_force

26.1-15.1-20. Nonforfeiture benefits, cash surrender values, certificate loans, and

other options.

1. For certificates issued before January 1, 1989, the value of every paid-up nonforfeiture

benefit and the amount of any cash surrender value, loan, or other option granted

must comply with the provisions of law applicable immediately before January 1, 1988.

2. For certificates issued after December 31, 1988, for which reserves are computed on

the commissioners' 1958 standard ordinary mortality table or the commissioners' 1980

standard ordinary mortality table, or any more recent table made applicable to life

insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender

value, loan, or other option granted must not be less than the corresponding amount

ascertained in accordance with the laws of this state applicable to life insurers issuing

policies containing like benefits based upon those tables.
N.D. Cent. Code § 26.1-05-24 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-24
26.1-05-24. Commissioner may examine books and securities of domestic life insurance company
Status: in_force

26.1-05-24. Commissioner may examine books and securities of domestic life

insurance company.

The commissioner may examine the books, papers, securities, and business of any

domestic life insurance company at any time, or may authorize any other suitable person to

make the examination. The commissioner, or person authorized to make an examination, may

examine under oath any officer or agent of the company, or any other person, relative to the

business and management of the company. If upon the examination the commissioner is of the

opinion that the company is insolvent or that its condition is such as to render a further

continuance of its business hazardous, the commissioner may require the company to deposit

in the commissioner's office all securities specified in any list filed pursuant to section

26.1-05-23 and not deposited.
N.D. Cent. Code § 26.1-26.3-02 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-02
26.1-26.3-02. Licensure
Status: in_force

26.1-26.3-02. Licensure

1. No individual, partnership, corporation, or limited liability company may act in the

capacity of a managing general agent with respect to risks located in this state for an

insurer licensed in this state unless the individual, partnership, corporation, or limited

liability company is licensed as an insurance producer in this state.

2. An individual, partnership, corporation, or limited liability company may not act in the

capacity of a managing general agent representing an insurer domiciled in this state

with respect to risks located outside this state unless the individual, partnership,

corporation, or limited liability company is licensed as either a resident or nonresident

insurance producer in this state pursuant to the provisions of this title.

3. The commissioner may require a bond in an amount acceptable to the commissioner

for the protection of the insurer.

4. The commissioner may require the managing general agent to maintain an adequate

errors and omissions policy.
N.D. Cent. Code § 26.1-02-06 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-06
26.1-02-06. Insurance transactions defined - Venue
Status: in_force

26.1-02-06. Insurance transactions defined - Venue

Any of the following acts in this state effected by mail or otherwise by or on behalf of an

unauthorized insurance company constitutes the transaction of an insurance business in this

state:

1. Making or proposing to make, as an insurance company, an insurance contract.

2. Making or proposing to make, as guarantor or surety, any contract of guaranty or

suretyship as a vocation and not merely incidental to any other legitimate business or

activity of the guarantor or surety.

3. Taking or receiving of any application for insurance.

4. Receiving or collecting any premium, commission, membership fees, assessments,

dues, or other consideration for any insurance or any part thereof.

5. Issuing or delivering an insurance contract to residents of this state or to persons

authorized to do business in this state.

6. Directly or indirectly acting as an insurance producer for or otherwise representing or

aiding on behalf of another, any person or insurance company in the solicitation,

negotiation, procurement, or effectuation of insurance or renewals thereof or in the

dissemination of information as to coverage or rates, or forwarding of applications, or

delivery of policies or contracts, or inspection of risks, or fixing of rates, or investigation

or adjustment of claims or losses, or in the transaction of matters subsequent to

effectuation of the contract and arising out of it, or in any other manner representing or

assisting a person or insurance company in the transaction of insurance with respect

to subjects of insurance resident, located, or to be performed, in this state. This

subsection does not prohibit full-time salaried employees of a corporate insured from

acting in the capacity of an insurance manager or buyer in placing insurance on behalf

of the employer.

7. Transacting any kind of insurance business specifically recognized as transacting an

insurance business within the meaning of the statutes relating to insurance.

8. Transacting or proposing to transact any insurance business in substance equivalent

to any of the foregoing in a manner designed to evade these statutes.

The venue of an act committed by mail is at the point where the matter transmitted by mail is

delivered and takes effect.
N.D. Cent. Code § 26.1-36.9-03 — ND Code / Title 26.1 / Chapter 26.1-36.9 / Section 26.1-36.9-03
26.1-36.9-03. Dental insurer rates - Approval (Effective after June 30, 2027)
Status: in_force

26.1-36.9-03. Dental insurer rates - Approval. (Effective after June 30, 2027)

1. The commissioner may deem a proposed plan rate of a dental insurer to be excessive

and disapprove the proposed plan rate if the dental insurer files a rate change and the:

a. Administrative expense component, not including taxes and assessments,

increases from the previous year's rate filing by more than four percent;

b. Reported contribution to surplus exceeds two percent of total revenue; or

c. Dental loss ratio for the plan is less than seventy-five percent.

2. a. If the annual dental loss ratio for a dental benefit plan is less than seventy-five

percent, the dental insurer offering the plan shall refund the excess premium to

covered individuals and groups. As used in this section, "dental loss ratio" means

the ratio used to determine the minimum percentage of all premium funds

collected by a dental insurer each year which must be spent on actual patient

care rather than overhead costs. This minimum required percentage that dental

benefit plans must meet for the portion of patient premiums must be dedicated to

patient care rather than administrative and overhead costs or the difference must

be refunded as provided in this section.

b. A dental insurer shall provide notice to all individuals and groups that were

covered under the plan during the applicable twelve-month period that such

individuals and groups are entitled to a refund on the premium, or if the individual

or group remains covered by the dental insurer, that the individual or group is

eligible for a credit on the premium for the following twelve-month period.

c. The total of all refunds issued under this subsection must equal the amount of the

dental insurer's earned premium which exceeds the amount necessary to achieve

a dental loss ratio of seventy-five percent, calculated using data reported by the

dental insurer.

d. The dental loss ratio is calculated by dividing the numerator by the denominator

as follows:

(1) The numerator is the amount spent on care, which must include:

(a) The amount expended for clinical dental services that are services

within the code on dental procedures and nomenclature, provided to

enrollees which includes payments under capitation contracts with

dental providers, whose services are covered by the contract for

dental clinical services or supplies covered by the contract;

(b) Unpaid claim reserves; and

(c) Any claim payment recovered by insurers from providers or enrollees

using utilization management efforts, which are deducted from

incurred claims amounts.

(2) Any overpayment received from a provider may not be reported as a paid

claim. Overpayment recoveries received from a provider must be deducted

from incurred claims amounts.

(3) The calculation of the numerator does not include:

(a) All administrative costs, including infrastructure, personnel costs, or

broker payments;

(b) Amounts paid to third-party vendors for secondary network savings;

(c) Amounts paid to third-party vendors for network development,

administrative fees, claims processing, and utilization management; or

(d) Amounts paid to providers for professional or administrative services

that do not represent compensation or reimbursement for covered

services provided to an enrollee, including dental record copying

costs, attorney fees, subrogation vendor fees, and compensation to

paraprofessionals, janitors, quality assurance analysts, administrative

supervisors, secretaries to dental personnel, and dental record clerks.

(4) (a) The denominator is calculated using insurer revenue.

(b) The earned premium is all moneys paid by a policyholder or

subscriber as a condition of receiving coverage from the issuer,

including any fees or other contributions associated with the dental

benefit plan.

(c) The denominator is the total amount of the earned premium revenues,

excluding federal and state taxes and licensing and regulatory fees

paid after accounting for any payments pursuant to federal law.

3. The commissioner may:

a. Authorize a waiver or adjustment of the refund requirements in this section only if

it is determined by the commissioner that issuing refunds would result in financial

impairment for the dental insurer.

b. Adopt rules to implement and administer this section.

4. This section does not apply to a dental insurer with one thousand enrollees or less

cumulative of all plans based on a three-year average.
N.D. Cent. Code § 26.1-16-11 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-11
26.1-16-11. Bonds of officers and agents
Status: in_force

26.1-16-11. Bonds of officers and agents

After a benevolent society has been licensed by the commissioner, the bonding of its

officers and agents is discretionary with its board of directors. During the period between the

filing of articles of incorporation and the issuing of a certificate of authority, however, the

commissioner shall set the amounts of the bonds sufficient to guarantee return of membership

fees collected in case the organization is not completed, and the bonds must be filed with the

commissioner.
N.D. Cent. Code § 26.1-36-44 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-44
26.1-36-44. Independent external review
Status: repealed

26.1-36-44. Independent external review

This section applies to grandfathered health plans. "Grandfathered health plan" has the

meaning stated in the Patient Protection and Affordable Care Act [Pub. L. 111-148], as amended

by the Health Care and Education Reconciliation Act of 2010 [Pub. L. 111-152]. Every insurance

company, nonprofit health service corporation, and health maintenance organization that offers

an accident and health line of insurance shall establish and implement an independent external

review mechanism to review and determine whether medical care rendered under the line of

insurance was medically necessary and appropriate to the claim as submitted by the provider.

For purposes of this section, "independent external review" means a review conducted by the

North Dakota health care review, inc., another peer review organization meeting the

requirements of section 1152 of the Social Security Act, or any person designated by the

commissioner to conduct an independent external review. A determination made by the

independent external reviewer is binding on the parties. Costs associated with the independent

external review are the responsibility of the nonprevailing party. A provider may not use an

independent external review under this section unless the provider first has exhausted all

internal appeal processes offered by the insurance company, nonprofit health service

corporation, or health maintenance organization. The insurance commissioner shall take steps

necessary to ensure compliance with this section. If federal laws or rules relating to independent

external review are amended, repealed, or otherwise changed, the insurance commissioner

shall adopt rules to ensure the independent external review procedure is in compliance with and

substantively equivalent to the federal requirements.
N.D. Cent. Code § 26.1-29-30 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-30
26.1-29-30. New contract on transfer of insurance on mortgaged property - Effect of mortgagor's acts
Status: in_force

26.1-29-30. New contract on transfer of insurance on mortgaged property - Effect of

mortgagor's acts.

If an insurer assents to the transfer of an insurance contract from a mortgagor to a

mortgagee and at the time of the insurer's assent imposes further obligations on the assignee,

making a new contract with the assignee, the acts of the mortgagor cannot affect the

mortgagee's right under the insurance.
N.D. Cent. Code § 26.1-10-11 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-11
26.1-10-11. Penalty
Status: in_force

26.1-10-11. Penalty

1. Any insurer failing, without just cause, to file any registration statement as required in

this chapter must be required, after notice and hearing, to pay a penalty of one

hundred dollars for each day's delay. 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.

2. Every director or officer of an insurance holding company system who knowingly

violates, participates in, or assents to, or who knowingly permits any of the officers or

agents of the insurer to engage in transactions or make investments which have not

been properly reported or submitted pursuant to sections 26.1-10-04 and 26.1-10-05,

or which violate this chapter, shall pay, in their individual capacity, a civil penalty of not

more than one thousand dollars per violation, after notice and hearing before the

commissioner. In determining the amount of the civil penalty, the commissioner shall

take into account the appropriateness of the penalty with respect to the gravity of the

violation, the history of previous violations, and such other matters as justice may

require.

3. Whenever it appears to the commissioner that any insurer subject to this chapter or

any director, officer, employee, or agent thereof has engaged in any transaction or

entered a contract which is subject to section 26.1-10-05 and which would not have

been approved had the approval been requested, the commissioner may order the

insurer to cease and desist immediately any further activity under that transaction or

contract. After notice and hearing, the commissioner may also order the insurer to void

any contracts and restore the status quo if it is in the best interest of the policyholders,

creditors, or the public.

4. Whenever it appears to the commissioner that any insurer or any director, officer,

employee, or agent thereof has committed a willful violation of this chapter, the

commissioner may institute criminal proceedings in the district court of the county in

which the principal office of the insurer is located or if the insurer has no principal office

in the state, then in the district court of Burleigh County against the insurer or the

responsible director, officer, employee, or agent of the company. Any insurer that

willfully violates this chapter may be fined not more than fifty thousand dollars. Any

individual who willfully violates this chapter may be fined in the individual's capacity not

more than ten thousand dollars.

5. Any officer, director, or employee of an insurance holding company system, who

willfully and knowingly subscribes to or makes or causes to be made any false

statements or false reports or false filings with the intent to deceive the commissioner

in the performance of the commissioner's duties under this chapter may be fined not

more than fifty thousand dollars. Any fines imposed must be paid by the officer,

director, or employee in the person's individual capacity.

6. If it appears to the commissioner any person has committed a violation of section

26.1-10-03 which prevents the full understanding of the enterprise risk to the insurer

by affiliates or by the insurance holding company system, the violation may serve as

an independent basis for disapproving dividends or distributions and for placing the

insurer under an order of supervision in accordance with chapter 26.1-06.2.
N.D. Cent. Code § 26.1-37-03 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-03
26.1-37-03. Issuance of policies and certificates
Status: in_force

26.1-37-03. Issuance of policies and certificates

All credit insurance subject to this chapter may be delivered or issued for delivery in this

state only by an insurer authorized to do an insurance business therein and may be issued only

through holders of licenses or authorizations issued by the commissioner.
N.D. Cent. Code § 26.1-13-04 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-04
26.1-13-04. Certificate of compliance
Status: in_force

26.1-13-04. Certificate of compliance

After articles of incorporation have been approved and filed, the commissioner shall deliver

to the persons filing the articles a certificate to the effect that the county mutual insurance

company has complied with all of the requirements of law. The certificate constitutes the

authority of the company to commence business and issue policies. A certified copy of the

articles and the certificate may be used for or against the company with the same effect as the

original and are conclusive evidence of the fact of the organization of the company as of the

date of the certificate.
N.D. Cent. Code § 26.1-52-03 — ND Code / Title 26.1 / Chapter 26.1-52 / Section 26.1-52-03
26.1-52-03. Board
Status: in_force

26.1-52-03. Board

1. A board of directors consisting of seven members shall direct the operations of the

property insurance placement facility. The seven members are comprised of five

directors from the insurance industry and two public directors as follows:

a. Two of the five industry representatives must come from domestic insurance

companies, one must come from county mutual insurance companies, one from

foreign stock companies, and one from foreign mutual companies. The

commissioner shall appoint the first board on a staggered basis. Subsequent

board members are to be elected by facility members.

b. The public directors must be appointed by the commissioner. Public directors

may include licensed insurance agents.

c. The term of each director is three years beginning on January first of the year the

director is elected or appointed, except as staggered in the initial appointment

process. A vacancy must be filled by election by the other directors for the

remainder of the term. A vacancy to a public directorship must be filled by

appointment by the commissioner for the remainder of the term. If the board fails

to elect a replacement for an industry vacancy within thirty days, the

commissioner shall appoint a replacement for the remainder of the term.

2. The board shall prepare and maintain a plan of operation which provides for the

management of the facility, including the hiring of employees or contracting services to

carry out the plan of operation, establishment of necessary facilities within the state,

assessment of members to defray losses and expenses, negotiating commission

agreements, establishing reasonable underwriting standards, developing reasonable

cancellation and nonrenewal standards, acceptance and cession of reinsurance,

adopting procedures for determining amounts of insurance to be provided, procedures

for payment of claims, procedures for appealing adverse actions, procedures for

reporting the plan experience to a statistical agent, and procedures for contracting

facility functions to the private sector. The board has ninety days to submit the initial

plan of operation to the commissioner for approval. All subsequent amendments to the

plan of operation must be submitted to the commissioner for approval. The

commissioner may require the board to waive the assessment requirement for an

insurer if the assessment would cause a significant financial impairment to the insurer

or would jeopardize the solvency of the insurer.
N.D. Cent. Code § 26.1-34.1-02 — ND Code / Title 26.1 / Chapter 26.1-34.1 / Section 26.1-34.1-02
26.1-34.1-02. Issuance of certificate of exemption to issue gift annuities
Status: in_force

26.1-34.1-02. Issuance of certificate of exemption to issue gift annuities

The commissioner shall issue a certificate of exemption if:

1. All requirements of this chapter have been met; and

2. The commissioner is satisfied that the corporation is in a position to competently

execute its responsibilities relative to such annuity contracts.
N.D. Cent. Code § 26.1-46-09 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-09
26.1-46-09. Administrative and procedural authority regarding risk retention groups and purchasing groups
Status: in_force

26.1-46-09. Administrative and procedural authority regarding risk retention groups

and purchasing groups.

The commissioner is authorized to make use of any of the powers and requirements

established under title 26.1 so long as those powers or requirements are not specifically

pre-empted by the federal Product Liability Risk Retention Act of 1981, as amended by the Risk

Retention Amendments of 1986. This includes the commissioner's administrative authority to

investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose

penalties, and seek injunctive relief. With regard to any investigation, administrative

proceedings, or litigation, the commissioner can rely on the procedural law and regulations of

the state. The injunctive authority of the commissioner in regard to risk retention groups is

restricted by the requirements that any injunction be issued by a court of competent jurisdiction.
N.D. Cent. Code § 26.1-30-23 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-23
26.1-30-23. Managed repair programs - Penalty
Status: in_force

26.1-30-23. Managed repair programs - Penalty

1. A property insurance policy may be issued or delivered in this state with a managed

repair program provision offering premium incentives for managed repair program

participation. As used in this section, "managed repair program" means an insurance

policy providing a program with a specified reduction in premium or other specified

incentive for participation in a program restricting an insured's choice of repair vendors

or contractors for covered repairs.

2. An insurer offering a managed repair program shall:

a. Prominently disclose on the policy declarations page the policy restricts the

insured's right to choose repair vendors;

b. Specify any premium benefits for program participation;

c. Include a separate disclosure form, written in at least twelve-point font, which

explains the restrictions on vendor selection, including:

(1) The process for repairs under the program;

(2) The insured's rights and responsibilities; and

(3) Any warranty or guarantee provided for repairs.

3. This section does not apply to contractor referral or managed or direct repair programs

that do not provide a specified reduction in premium or other incentive.

4. This section applies to insurance policies issued or renewed after August 1, 2025.

5. The commissioner shall enforce this section.

6. The commissioner may assess a penalty on an insurer in violation of this section, as

determined by the commissioner.
N.D. Cent. Code § 26.1-29-22 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-22
26.1-29-22. Representation - Form - When made
Status: in_force

26.1-29-22. Representation - Form - When made

A representation, either oral or written, may be made before or at the time of issuing the

policy.
N.D. Cent. Code § 26.1-24-09 — ND Code / Title 26.1 / Chapter 26.1-24 / Section 26.1-24-09
26.1-24-09. Sale or negotiation of premium note prohibited - Penalty
Status: in_force

26.1-24-09. Sale or negotiation of premium note prohibited - Penalty

A promissory note taken in settlement of the first premium on any life, health, or accident

insurance policy may not be sold or negotiated in any manner prior to the applicant's medical

examination, when one is required, nor a binding receipt for the premium signed by an

authorized insurance producer of the insurance company has been delivered to the applicant,

nor until the insurance company has received the application and medical examination. Any

person violating this section is guilty of a class B misdemeanor.
N.D. Cent. Code § 26.1-03.2-07 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-07
26.1-03.2-07. Hearings
Status: in_force

26.1-03.2-07. Hearings

Upon the occurrence of any of the following events, the health organization shall have the

right to a confidential departmental hearing, on a record, at which the health organization may

challenge any determination or action by the commissioner. The health organization shall notify

the commissioner of its request for a hearing within five days after the notification by the

commissioner under subsection 1, 2, 3, or 4. Upon receipt of the health organization's request

for a hearing, the commissioner shall set a date for the hearing, which may not be less than ten

nor more than thirty days after the date of the health organization's request. The events include:

1. Notification to a health organization by the commissioner of an adjusted risk-based

capital report;

2. Notification to a health organization by the commissioner that:

a. The health organization's risk-based capital plan or revised risk-based capital

plan is unsatisfactory; and

b. Notification constitutes a regulatory action level event with respect to the health

organization;

3. Notification to a health organization by the commissioner that the health organization

has failed to adhere to its risk-based capital plan or revised risk-based capital plan and

that the failure has a substantial adverse effect on the ability of the health organization

to eliminate the company action level event with respect to the health organization in

accordance with its risk-based capital plan or revised risk-based capital plan; or

4. Notification to a health organization by the commissioner of a corrective order with

respect to the health organization.
N.D. Cent. Code § 26.1-02-04 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-04
26.1-02-04. Company controlled by foreign government prohibited - Penalty
Status: in_force

26.1-02-04. Company controlled by foreign government prohibited - Penalty

An insurance company or other insurance entity financially owned or financially controlled

by any foreign government outside the United States may not do any insurance business in this

state. The commissioner may not grant a license or issue a certificate of authority to any

insurance company or other insurance entity financially owned or financially controlled by any

foreign government outside the United States to transact any insurance business in this state.

This section does not affect any insurance company qualified to do business in this state before

January 2, 1955.
N.D. Cent. Code § 26.1-32-09 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-09
26.1-32-09. Waiver of delay in presenting notice or proof of loss
Status: in_force

26.1-32-09. Waiver of delay in presenting notice or proof of loss

Delay in the presentation to an insurer of notice or proof of loss is waived if the delay is

caused by any act of the insurer, or if the insurer fails to make a prompt and specific objection.
N.D. Cent. Code § 26.1-17-05.1 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-05.1
26.1-17-05.1. Authority of corporation writing medical service contracts
Status: in_force

26.1-17-05.1. Authority of corporation writing medical service contracts

A health service corporation writing medical service contracts may:

1. Enter into contracts with subscribers whereby each subscriber, subscriber member,

officer, or employee is entitled to certain specified health services as provided in the

subscriber's contract.

2. Enter into contracts with similar corporations within or without the state for the

interchange of services to those included in subscription or other similar contracts, and

may provide subscription contracts for the substitution of such services in lieu of those

therein recited.

3. Enter into contracts with physicians for the rendering of medical service to subscribers

in accordance with the terms of the subscriber contract.

4. Enter into contracts with laboratories and vendors of health appliances and prostheses

to provide material and services pursuant to contracts with subscribers.
N.D. Cent. Code § 26.1-36-24 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-24
26.1-36-24. Health policy transferable
Status: in_force

26.1-36-24. Health policy transferable

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

that person has an insurable interest or not, and that person may recover any benefit payable

under the policy in accordance with the terms of the policy, but in no event shall such transfer or

succession operate to change the named insured or insureds covered under the policy. An

insured under a group health insurance policy, pursuant to agreement among the insured, the

group policyholder and the insurer, may make an assignment of all or any part of the incidents

of ownership held by the insured under the policy, including any right to designate a beneficiary

and any right to have an individual policy issued in case of termination of employment. An

assignment, whether made prior to or subsequent to July 1, 1971, is valid for the purpose of

vesting in the assignee all the incidents of ownership assigned, and entitles the insurer to deal

with the assignee as the owner in accordance with the policy, but without prejudice to the

insurer on account of any payment made or individual policy issued prior to receipt by the

insurer of such notice as may be required by the policy.
N.D. Cent. Code § 26.1-03-11.1 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-11.1
26.1-03-11.1. Insurance company annual statements - Filed with national association of insurance commissioners
Status: in_force

26.1-03-11.1. Insurance company annual statements - Filed with national association

of insurance commissioners.

1. Every domestic, foreign, and alien insurance company in this state shall transmit to the

national association of insurance commissioners, not later than March first of each

year, a copy of its annual statement, along with any additional filings as described by

the commissioner for the preceding year. The information filed with the national

association of insurance commissioners must be in the same format and scope as that

required by the commissioner and must include the signed jurat page and the actuarial

certification. Any amendments and addenda to the annual statement filing

subsequently filed with the commissioner must also be filed with the national

association of insurance commissioners. The insurance commissioner may exempt

any domestic company or category or class of domestic companies from the filing

requirement.

2. Foreign insurance companies domiciled in a state which has a law substantially similar

to subsection 1 are deemed to be in compliance with this section.

3. a. Documents, materials, or other information in the possession or control of the

commissioner which are an actuarial report, workpapers, or actuarial opinion

summary provided in support of the actuarial certification commonly known as the

statement of actuarial opinion, and any other material provided by the insurance

company to the commissioner in connection with the actuarial report, workpapers,

or actuarial opinion summary, is confidential and privileged and is not subject to

section 44-04-18. This subsection may not be construed to limit the authority to

subpoena or otherwise discover the documents, materials, or other information or

to limit use of the documents, materials, or other information in criminal

investigations or proceedings.

b. This subsection may not be construed to limit the commissioner's authority to

release the documents to the actuarial board for counseling and discipline so long

as the material is required for the purpose of professional disciplinary

proceedings and the actuarial board for counseling and discipline establishes

procedures satisfactory to the commissioner for preserving the confidentiality of

the documents. This section may not be construed to limit the commissioner's

authority to use the documents, materials, or other information in furtherance of

any regulatory or legal action brought as part of the commissioner's official duties.

c. This subsection does not apply to actuarial opinions required under
N.D. Cent. Code § 26.1-06.1-55 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-55
26.1-06.1-55. Claims of residents against insurers domiciled in reciprocal states
Status: in_force

26.1-06.1-55. Claims of residents against insurers domiciled in reciprocal states

1. In a liquidation proceeding in a reciprocal state against an insurer domiciled in that

state, claimants against the insurer who reside within this state may file claims either

with the ancillary receiver, if any, in this state, or with the domiciliary liquidator. Claims

must be filed on or before the last dates fixed for the filing of claims in the domiciliary

liquidation proceeding.

2. Claims belonging to claimants residing in this state may be proved either in the

domiciliary state under the law of that state, or in ancillary proceedings, if any, in this

state. If a claimant elects to prove a claim in this state, the claimant shall file the claim

with the liquidator in the manner provided in sections 26.1-06.1-34 and 26.1-06.1-35.

The ancillary receiver shall make a recommendation to the court as under section
N.D. Cent. Code § 26.1-26.6-04 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-04
26.1-26.6-04. Appointment and license as bail bond agent - Pledge of property as security - Penalty
Status: in_force

26.1-26.6-04. Appointment and license as bail bond agent - Pledge of property as

security - Penalty.

A person may not act in the capacity of a bail bond agent or perform any of the functions,

duties, or powers prescribed for a bail bond agent under this chapter unless that person is

appointed and licensed as provided in this chapter. However, this section does not prohibit any

individual from pledging real or other property as security for a bail bond in judicial proceedings

if the individual does not receive, or is not promised, money or other things of value therefor.

Violation of this section is a class A misdemeanor.
N.D. Cent. Code § 26.1-40-01 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-01
26.1-40-01. Definitions - Limitations
Status: in_force

26.1-40-01. Definitions - Limitations

As used in sections 26.1-40-02 through 26.1-40-12:

1. "Declination" means the refusal of an insurer to issue a policy upon receipt of a written

nonbinding application or written request for coverage from its insurance producer or

an applicant. The offering of insurance coverage with a company within an insurance

group which is different from the company requested on the nonbinding application or

written request for coverage, or the offering of policy coverage or rates substantially

less favorable than requested in the nonbinding application or written request for

coverage, is a declination.

2. "Nonpayment of premium" means failure of the insured to discharge when due any of

the insured's obligations in connection with the payment of premium on a policy, or any

installment of the premium, whether the premium is payable directly to the insurer or

its insurance producer or indirectly under any premium finance plan or extension of

credit.

3. "Policy" means any automobile policy which includes automobile liability coverage,

uninsured motorist coverage, underinsured motorist coverage, automobile medical

payments coverage, basic or optional excess no-fault benefits, or automobile physical

damage coverage, delivered or issued for delivery in this state, insuring as the named

insured an individual residing in this state, and under which the insured vehicles

designated in the policy are of the following types only:

a. A motor vehicle of the private passenger type that is not used as a public or livery

conveyance, nor rented to others.

b. Any four-wheel motor vehicle with a load capacity of one thousand five hundred

pounds [680.39 kilograms] or less which is not used in the occupation,

profession, or business of the insured, nor used as a public or livery conveyance,

nor rented to others.

c. Any motorcycle as that term is defined in section 39-01-01 that is not used as a

public or livery conveyance, nor rented to others.

d. An unconventional vehicle as that term is defined in subsection 2 of section

39-29.2-01 that is not used as a public or livery conveyance, nor rented to others.

"Policy" does not include any policy that has been in effect less than sixty days at the

time notice of cancellation is mailed or delivered by the insurer unless it is a renewal

policy; any policy issued under the North Dakota assigned risk plan; any policy

insuring more than six motor vehicles; any policy covering the operation of a garage,

automobile sales agency, repair shop, service station, or public parking place; any

policy providing insurance only on an excess basis; or any other contract providing

insurance to a named insured even though the contract may incidentally provide

insurance with respect to such motor vehicles.

4. "Renewal" or "to renew" means the issuance and delivery by an insurer of a policy

replacing, at the end of the previous policy period, a policy previously issued and

delivered by the same insurer; the issuance and delivery of a certificate or notice

extending the term of a policy beyond its policy period or term; or the extension of the

term of a policy beyond its policy period or term pursuant to a provision for extending

the policy by payment of a continuation premium. The term includes a change or

alteration in the amount of a deductible, coverage, or exclusion which results in

substantially equivalent coverage if the altered terms are provided to the insured in the

notice of renewal. Any policy with a policy period or term of less than six months must

be considered as if written for a policy period or term of six months except in case of

termination under any of the circumstances specified in subsection 2 of section
N.D. Cent. Code § 26.1-36.5-05 — ND Code / Title 26.1 / Chapter 26.1-36.5 / Section 26.1-36.5-05
26.1-36.5-05. Authority and jurisdiction
Status: in_force

26.1-36.5-05. Authority and jurisdiction

This chapter is adopted pursuant to the requirements of sections 4301 and 13623 of Public

Law 103-66 [107 Stat. 312; 29 U.S.C. 1161 et seq. and 42 U.S.C. 1396g-1]. The commissioner

may take any action reasonably necessary to enforce this chapter and section 26.1-36-12. Any

insurer subject to the provisions of this chapter or section 26.1-36-12 must submit to the

jurisdiction of the commissioner and to the courts of this state to the greatest extent permitted

under state or federal law.
N.D. Cent. Code § 26.1-15.1-28 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-28
26.1-15.1-28. Examination of societies
Status: in_force

26.1-15.1-28. Examination of societies

1. The commissioner may examine any domestic, foreign, or alien society transacting or

applying for admission to transact business in this state in the same manner as

authorized for examination of domestic, foreign, or alien insurers. Requirements of

notice and an opportunity to respond before findings are made public as provided in

the laws regulating insurers are applicable to the examination of societies.

2. The expense of each examination and of each valuation, including compensation and

actual expense of examiners, must be paid by the society examined or whose

certificates are valued, upon statements furnished by the commissioner.
N.D. Cent. Code § 26.1-27-01.1 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-01.1
26.1-27-01.1. Pharmacy benefits manager
Status: repealed

26.1-27-01.1. Pharmacy benefits manager

Repealed by S.L. 2025, ch. 278, § 11.
N.D. Cent. Code § 26.1-13-31 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-31
26.1-13-31. County mutual fire and lightning companies may form reinsurance company
Status: repealed

26.1-13-31. County mutual fire and lightning companies may form reinsurance

company.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-22-11 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-11
26.1-22-11. Arbitration of value or loss
Status: in_force

26.1-22-11. Arbitration of value or loss

1. If the office and the state agency, political subdivision, or winter show having custody

of any property disagree about the insurable value of the property or the amount of

loss insured, the office and the state agency, political subdivision, or winter show may

agree to have the value or loss determined by a competent, disinterested contractor,

architect, experienced appraiser, appraisal company, or a member of those respective

professional boards at the expense of the state agency, political subdivision, or winter

show owning the property.

2. If the office and the state agency, political subdivision, or winter show are unable to

resolve a disagreement under subsection 1, the determination must be arbitrated as

provided in this subsection.

a. The office and the state agency, political subdivision, or winter show having

custody of the property each shall select one competent, disinterested contractor,

architect, experienced appraiser, appraisal company, or a member of those

respective professional boards. The two selected arbitrators shall select a third

arbitrator with similar qualifications.

b. The three arbitrators shall determine the insurable value of the property or the

amount of loss insured within thirty days after the selection of the first two

arbitrators. Upon determination by a majority of the arbitrators, the arbitrators

shall notify the parties of the determination in writing. The determination is binding

on both parties.

c. Each party to the dispute shall pay the expenses of the arbitrator chosen by the

party. The expenses of the third arbitrator must be paid equally by both parties to

the dispute.

d. While the value is being determined under this section, property must continue to

be valued in the same amount as previously determined, or in case of new

buildings or property, in the amount determined by the office.

3. This section applies to existing property, new construction, and property with a change

in value.
N.D. Cent. Code § 26.1-16-20 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-20
26.1-16-20. Expense fund - Credits - Levies
Status: in_force

26.1-16-20. Expense fund - Credits - Levies

The membership fee of the society, which may be not less than one dollar nor more than

five dollars, may be used for expenses. The certificate of membership must state the

percentage of death assessments, not exceeding ten percent, that may be used for expenses,

and moneys received on the assessments, within the limitations of this section, must be credited

to the expense fund. Expense fund assessments may be levied in accordance with the

applicable provisions in the membership certificate in amounts not exceeding three dollars in

any one calendar year.
N.D. Cent. Code § 26.1-01-08 — ND Code / Title 26.1 / Chapter 26.1-01 / Section 26.1-01-08
26.1-01-08. Rulemaking - Administrative procedure - Appeal from commissioner's decision
Status: in_force

26.1-01-08. Rulemaking - Administrative procedure - Appeal from commissioner's

decision.

Any rulemaking or any administrative proceeding conducted by the commissioner is subject

to chapter 28-32, and any order or decision of the commissioner, unless otherwise specifically

provided for by law, is subject to review or appeal in the manner provided by chapter 28-32.
N.D. Cent. Code § 26.1-39.2-02 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-02
26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance policy - Right to cancel - Duties
Status: in_force

26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance

policy - Right to cancel - Duties.

1. A person that enters a written contract with a residential contractor to provide goods or

services to be paid from the proceeds of a property and casualty insurance policy may

cancel the contract before midnight on the later of the fifth business day after the

person has:

a. Entered the written contract; or

b. Received written notice from the person's insurer that all or part of the claim or

contract is not a covered loss under the insurance policy.

2. The written contract must include a statement that the insured homeowner has the

right to cancel the contract in accordance with subsection 1.

3. The person seeking to cancel the contract shall evidence the cancellation by giving the

residential contractor a signed and dated copy of written notice of the cancellation.

a. The notice of cancellation may be delivered or mailed to the address of the

residential contractor's place of business as stated in the contract.

b. The notice of cancellation must include a copy of the written notice from the

person's insurer, if applicable, to the effect that all or part of the claim or contract

is not a covered loss under the insurance policy.

c. Notice of cancellation given by mail is effective upon deposit in the United States

mail, postage prepaid, if properly addressed to the residential contractor.

d. Notice of cancellation is not required to be in a particular form and is sufficient if

the notice indicates the intent of the insured not to be bound by the contract.

4. Within ten days after a contract to provide goods or services to be paid from the

proceeds of a property and casualty insurance policy has been canceled by

notification pursuant to this section, the residential contractor shall tender to the

person canceling the contract any payments, partial payments, or deposits made by

the person and any note or other evidence of indebtedness, except if the residential

contractor has provided goods or services agreed to by the person in writing to be

necessary to prevent damage to the premises, the residential contractor is entitled to

be paid the reasonable value of those goods or services. A contract provision to

provide goods or services to be paid from the proceeds of a property and casualty

insurance policy requiring the payment of a fee that is not for those goods or services

is not enforceable against a person that has canceled a contract pursuant to this

section.
N.D. Cent. Code § 26.1-39-29 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-29
26.1-39-29. Civil remedy actions against property insurers
Status: in_force

26.1-39-29. Civil remedy actions against property insurers

Notwithstanding any provision under title 26.1, before a named insured may proceed with a

bad faith claim against a property insurer, the named insured shall establish through an adverse

adjudication by a court of law the property insurer breached the insurance contract and a final

judgment or decree must have been rendered against the insurer.
N.D. Cent. Code § 26.1-17-09 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-09
26.1-17-09. Capital - Repayment
Status: in_force

26.1-17-09. Capital - Repayment

A health service corporation writing hospital service contracts or medical service contracts

may not commence business and enter into any contracts with subscribers, nor secure any

application therefor, unless the corporation has a contributed surplus of not less than one

hundred thousand dollars. A health service corporation writing health service contracts other

than hospital service or medical service contracts may not enter into any contracts with any

subscribers, nor secure any application therefor, unless the corporation has a contributed

surplus of not less than twenty-five thousand dollars. The contributed surplus is repayable when

the unassigned earned surplus exceeds the amount required to be initially paid in as contributed

surplus, only if the payment does not impair the working capital of the health service

corporation.
N.D. Cent. Code § 26.1-29-14 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-14
26.1-29-14. Concealment defined
Status: in_force

26.1-29-14. Concealment defined

"Concealment" means a neglect to communicate that which a party knows and ought to

communicate.
N.D. Cent. Code § 26.1-45-03 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-03
26.1-45-03. Limits of group long-term care insurance
Status: in_force

26.1-45-03. Limits of group long-term care insurance

No group long-term care insurance coverage may be offered to a resident of this state

under a group policy issued in another state to a group described in subdivision d of

subsection 3 of section 26.1-45-01 unless the insurance commissioner or an insurance

department in another state having statutory and regulatory long-term care insurance

requirements substantially similar to those in this state has made a determination that the

long-term care insurance requirements have been met.
N.D. Cent. Code § 26.1-30-04 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-04
26.1-30-04. Insurance only on interest of insured - Stipulation of interest void
Status: in_force

26.1-30-04. Insurance only on interest of insured - Stipulation of interest void

When the name of the person intended to be insured is specified in an insurance policy, it

can be applied only to that person's own proper interest. Every stipulation in an insurance policy

for the payment of loss regardless of whether the person insured has or has not any interest in

the property insured or that the policy is proof of such interest is void.
N.D. Cent. Code § 26.1-19-01 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-01
26.1-19-01. Interpretation
Status: in_force

26.1-19-01. Interpretation

This chapter must be interpreted liberally to achieve the following purposes:

1. To encourage development of effective and economic methods of making legal

services available to the public in this state.

2. To allow development of legal service plans and encourage experimentation with

innovative methods of organizing and administering those plans.

3. To encourage competition among the various entities organized under this statute.

4. To ensure maintenance of a high level of competence and adherence to professional

standards.
N.D. Cent. Code § 26.1-17-21 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-21
26.1-17-21. Limitations on dental and optometric service contracts
Status: in_force

26.1-17-21. Limitations on dental and optometric service contracts

Every subscriber under a dental or optometric service plan must receive a copy of the

contract. The contract must clearly state the care, appliances, materials, and supplies to be

provided under the contract and the rate charged the subscriber. Every subscriber must have, at

all times, free choice of the dentist or practitioner who is to treat the subscriber, and this right

must be prominently printed in the contract. Every optometric service contract must provide that

a subscriber has the freedom of choice to have the materials and supplies furnished by any

practitioner or optician, the cost for which is to be covered in accordance with the terms of the

contract.
N.D. Cent. Code § 26.1-33-24 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-24
26.1-33-24. Calculations of adjusted premiums by the nonforfeiture net level premium method
Status: in_force

26.1-33-24. Calculations of adjusted premiums by the nonforfeiture net level premium

method.

1. This section applies to all policies issued on or after the operative date of this section.

Except as provided in subsection 7, the adjusted premiums for any policy must be

calculated on an annual basis and must be such uniform percentage of the respective

premiums specified in the policy for each policy year, excluding amounts payable as

extra premiums to cover impairments or special hazards and also excluding any

uniform annual contract charge or policy fee specified in the policy in a statement of

the method to be used in calculating the cash surrender values and paid-up

nonforfeiture benefits, that the present value, at the date of issue of the policy, of all

adjusted premiums equals the sum of:

a. The then present value of the future guaranteed benefits provided for by the

policy;

b. One percent of either the amount of insurance, if the insurance is uniform in

amount, or the average amount of insurance at the beginning of each of the first

ten policy years; and

c. One hundred twenty-five percent of the nonforfeiture net level premium as

hereinafter defined.

In applying the percentage specified in subdivision c, no nonforfeiture net level

premium may exceed four percent of either the amount of insurance, if the insurance

is uniform in amount, or the average amount of insurance at the beginning of each of

the first ten policy years. The date of issue of a policy for the purpose of this section is

the date as of which the rated age of the insured is determined.

2. The nonforfeiture net level premium is equal to the present value, at the date of issue

of the life insurance policy, of the guaranteed benefits provided for by the policy

divided by the present value, at the date of issue of the policy, of an annuity of one per

annum payable on the date of issue of the policy and on each anniversary of the policy

on which a premium falls due.

3. In the case of life insurance policies that cause on a basis guaranteed in the policy

unscheduled changes in benefits or premiums, or that provide an option for changes in

benefits or premiums other than a change to a new policy, the adjusted premiums and

present values must initially be calculated on the assumption that future benefits and

premiums do not change from those stipulated at the date of issue of the policy. At the

time of any change in the benefits or premiums the future adjusted premiums,

nonforfeiture net level premiums, and present values must be recalculated on the

assumption that future benefits and premiums do not change from those stipulated by

the policy immediately after the change.

4. Except as otherwise provided in subsection 7, the recalculated future adjusted

premiums for any life insurance policy must be the uniform percentage of the

respective future premiums specified in the policy for each policy year, excluding

amounts payable as extra premiums to cover impairments and special hazards, and

also excluding any uniform annual contract charge or policy fee specified in the policy

in a statement of the method to be used in calculating the cash surrender values and

paid-up nonforfeiture benefits, that the present value, at the time of change to the

newly defined benefits or premiums, of all such future adjusted premiums equals the

excess of:

a. The sum of:

(1) The then present value of the then future guaranteed benefits provided for

by the policy; plus

(2) The additional expense allowance, if any; divided by

b. The then cash surrender value, if any, or present value of any paid-up

nonforfeiture benefit under the policy.

5. The additional expense allowance, at the time of the change to the newly defined

benefits or premiums, is the sum of:

a. One percent of the excess, if positive, of the average amount of insurance at the

beginning of each of the first ten policy years subsequent to the change over the

average amount of insurance prior to the change at the beginning of each of the

first ten policy years subsequent to the time of the most recent previous change,

or, if there has been no previous change, the date of issue of the policy; and

b. One hundred twenty-five percent of the increase, if positive, in the nonforfeiture

net level premium.

6. The recalculated nonforfeiture net level premium is equal to the result obtained by

dividing the sum of the nonforfeiture net level premium applicable prior to the change

times the present value of an annuity of one per annum payable on each anniversary

of the policy on or subsequent to the date of the change on which a premium would

have fallen due had the change not occurred and the present value of the increase in

future guaranteed benefits provided for by the policy by the present value of an annuity

of one per annum payable on each anniversary of the policy on or subsequent to the

date of change on which a premium falls due.

7. Notwithstanding any other provision of this section to the contrary, in the case of a life

insurance policy issued on a substandard basis which provides reduced graded

amounts of insurance so that, in each policy year, the policy has the same tabular

mortality cost as an otherwise similar policy issued on the standard basis which

provides higher uniform amounts of insurance, adjusted premiums and present values

for the substandard policy may be calculated as if it were issued to provide the higher

uniform amounts of insurance on the standard basis.

8. All adjusted premiums and present values referred to in sections 26.1-33-18 through

26.1-33-28 must for all ordinary life insurance policies be calculated on the basis of the

commissioners 1980 standard ordinary mortality table, or at the election of the insurer

for any one or more specified plans of life insurance, the commissioners 1980

standard ordinary mortality table with ten-year select mortality factors; must for all

policies of industrial insurance be calculated on the basis of the commissioners 1961

standard industrial mortality table; and must for all policies issued in a particular

calendar year be calculated on the basis of a rate of interest not exceeding the

nonforfeiture interest rate as defined in this section for policies issued in that calendar

year. However:

a. At the option of the insurer, calculations for all policies issued in a particular

calendar year may be made on the basis of a rate of interest not exceeding the

nonforfeiture interest rate, as defined in this section, for policies issued in the

immediately preceding calendar year.

b. Under any paid-up nonforfeiture benefit, including any paid-up dividend additions,

any cash surrender value available, whether or not required by section

26.1-33-18, must be calculated on the basis of the mortality table and rate of

interest used in determining the amount of such paid-up nonforfeiture benefit and

paid-up dividend additions, if any.

c. An insurer may calculate the amount of any guaranteed paid-up nonforfeiture

benefit, including any paid-up additions under the policy on the basis of an

interest rate no lower than that specified in the policy for calculating cash

surrender values.

d. In calculating the present value of any paid-up term insurance with accompanying

pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality

assumed may be not more than those shown in the commissioners 1980

extended term insurance table for ordinary life insurance policies and not more

than the commissioners 1961 industrial extended term insurance table for

industrial insurance policies.

e. For insurance issued on a substandard basis, the calculation of any adjusted

premiums and present values may be based on appropriate modifications of the

tables.

f. For policies issued before the operative date of the valuation manual, any

commissioners standard ordinary mortality tables, adopted after 1980 by the

national association of insurance commissioners, that are approved by rule

adopted by the commissioner for use in determining the minimum nonforfeiture

standard may be substituted for the commissioners 1980 standard ordinary

mortality table with or without ten-year select mortality factors or for the

commissioners 1980 extended term insurance table. For policies issued on or

after the operative date of the valuation manual, the valuation manual must

provide the commissioners standard mortality table for use in determining the

minimum nonforfeiture standard that may be substituted for the commissioners

1980 standard ordinary mortality table with or without ten-year select mortality

factors or for the commissioners 1980 extended term insurance table. If the

commissioner approves by rule any commissioners standard ordinary mortality

table adopted by the national association of insurance commissioners for use in

determining the minimum nonforfeiture standard for policies issued on or after the

operative date of the valuation manual, then that minimum nonforfeiture standard

supersedes the minimum nonforfeiture standard provided by the valuation

manual.

g. For policies issued before the operative date of the valuation manual, any

commissioners standard industrial mortality tables, adopted after 1980 by the

national association of insurance commissioners, that are approved by rule

adopted by the commissioner for use in determining the minimum nonforfeiture

standard may be substituted for the commissioners 1961 standard industrial

mortality table or the commissioners 1961 industrial extended term insurance

table. For policies issued on or after the operative date of the valuation manual,

the valuation manual must provide the commissioners standard mortality table for

use in determining the minimum nonforfeiture standard that may be substituted

for the commissioners 1961 standard industrial mortality table or the

commissioners 1961 industrial extended term insurance table. If the

commissioner approves by rule any commissioners standard industrial mortality

table adopted by the national association of insurance commissioners for use in

determining the minimum nonforfeiture standard for policies issued on or after the

operative date of the valuation manual then that minimum nonforfeiture standard

supersedes the minimum nonforfeiture standard provided by the valuation

manual.

9. The nonforfeiture interest rate is defined:

a. For policies issued before the operative date of the valuation manual, the

nonforfeiture interest rate per annum for any policy issued in a particular calendar

year shall be equal to one hundred twenty-five percent of the calendar year

statutory valuation interest rate for such policy as defined in chapter 26.1-35,

rounded to the nearer one quarter of one percent, but the nonforfeiture interest

rate may not be less than four percent.

b. For policies issued on or after the operative date of the valuation manual the

nonforfeiture interest rate per annum for any policy issued in a particular calendar

year must be provided by the valuation manual.

10. Notwithstanding any other provision in this title to the contrary, any refiling of

nonforfeiture values or their methods of computation for any previously approved

policy form which involves only a change in the interest rate or mortality table used to

compute nonforfeiture values does not require refiling of any other provisions of that

policy form.

11. Upon the operative date of this section, any insurer may file with the commissioner a

written notice of its election to comply with the provision of this section after a specified

date before January 1, 1989, which must be the operative date of this section for the

insurer. If an insurer makes no election, the operative date of this section for the

insurer is January 1, 1989.
N.D. Cent. Code § 26.1-42.1-06 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-06
26.1-42.1-06. Plan of operation
Status: in_force

26.1-42.1-06. Plan of operation

1. The association shall submit to the commissioner a plan of operation and any

amendments to this plan necessary or suitable to assure the fair, reasonable, and

equitable administration of the association. The plan of operation and any

amendments become effective upon written approval by the commissioner. If the

association fails to submit a suitable plan of operation within ninety days following

August 1, 1999, or if at any time after August 1, 1999, the association fails to submit

suitable amendments to the plan, the commissioner, after notice and hearing, shall

adopt rules as necessary or advisable to implement this chapter. These rules continue

in force until modified by the commissioner or superseded by a plan submitted by the

association and approved by the commissioner.

2. All member insurers shall comply with the plan of operation.

3. The plan of operation must:

a. Establish procedures by which all the powers and duties of the association under

section 26.1-42.1-05 will be performed.

b. Establish procedures for handling assets of the association.

c. Establish procedures for the disposition of liquidating dividends or other moneys

received from the estate of the insolvent insurer.

d. Establish the amount and method of reimbursing members of the board of

directors under section 26.1-42.1-04.

e. Establish procedures by which claims may be filed with the association, if

necessary, and establish acceptable forms of proof of covered claims. Notice of

claims to the receiver or liquidator of the insolvent insurer are deemed notice to

the association or the association's agent and periodically a list of claims must be

submitted to the association or similar organization in another state by the

receiver or liquidator.

f. Establish regular places and times for meetings of the board of directors.

g. Establish procedures for records to be kept of all financial transactions of the

association, the association's agents, and the board of directors.

h. Provide that any member insurer aggrieved by any final action or decision of the

association may appeal to the commissioner within thirty days after the action or

decision.

i. Establish procedures by which selections for the board of directors will be

submitted to the commissioner.

j. Contain provisions necessary or proper for the execution of the powers and

duties of the association.

4. The plan of operation may provide that powers and duties of the association, except

those under subdivision d of subsection 1 of section 26.1-42.1-05 and subdivision b of

subsection 2 of section 26.1-42.1-05, are delegated to a corporation, association, or

other organization that performs or will perform functions similar to those of this

association or this association's equivalent in two or more states. This corporation,

association, or organization must be reimbursed as a servicing facility would be

reimbursed and must be paid for performance of any other functions of the

association. A delegation under this subsection takes effect only with the approval of

the board of directors and the commissioner, and may be made only to a corporation,

association, or organization that extends protection not substantially less favorable

and less effective than that provided by this chapter.
N.D. Cent. Code § 26.1-05-07.3 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-07.3
26.1-05-07.3. Conversion to foreign insurer
Status: in_force

26.1-05-07.3. Conversion to foreign insurer

A domestic insurer, upon the approval of the commissioner, may transfer its domicile to

another state in which it is admitted to transact the business of insurance. Upon transfer, the

insurer ceases to be a domestic insurer and, if qualified, may be admitted to this state as a

foreign insurer. The commissioner shall approve a proposed transfer unless the commissioner

determines the transfer is not in the interests of the policyholders of the state.
N.D. Cent. Code § 26.1-27-02 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-02
26.1-27-02. Insurer defined
Status: in_force

26.1-27-02. Insurer defined

In this chapter, "insurer" means any person, including a self-insurer, engaged as a principal

in the business of annuities or life or health insurance.
N.D. Cent. Code § 26.1-36.1-08 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-08
26.1-36.1-08. Effect of policy not conforming to chapter
Status: in_force

26.1-36.1-08. Effect of policy not conforming to chapter

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

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

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

insurer, the insured, and the beneficiary are governed by this chapter.
N.D. Cent. Code § 26.1-36.3-09 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-09
26.1-36.3-09. Periodic market evaluation
Status: repealed

26.1-36.3-09. Periodic market evaluation

Repealed by S.L. 2003, ch. 256, § 3.
N.D. Cent. Code § 26.1-36-36.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-36.1
26.1-36-36.1. Filing requirements for advertising
Status: repealed

26.1-36-36.1. Filing requirements for advertising

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-39.1-01 — ND Code / Title 26.1 / Chapter 26.1-39.1 / Section 26.1-39.1-01
26.1-39.1-01. Definitions
Status: in_force

26.1-39.1-01. Definitions

As used in this chapter:

1. "Certificate holder" means a person, other than a policyholder, to which a certificate of

insurance has been issued.

2. "Certificate of insurance" means a document or instrument, regardless of how titled or

described, that is prepared or issued by an insurer or insurance producer as a

statement of property or casualty insurance coverage. The term does not include a

policy of insurance or insurance binder.

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

state to sell, solicit, or negotiate property or casualty insurance.

4. "Insurer" means any organization that issues property or casualty insurance.

5. "Policyholder" means a person that contracted with an insurer for property or casualty

insurance coverage.
N.D. Cent. Code § 26.1-18.1-18 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-18
26.1-18.1-18. Examinations
Status: in_force

26.1-18.1-18. Examinations

1. The commissioner may make an examination of the affairs of any health maintenance

organization and providers with whom the organization has contracts, agreements, or

other arrangements as often as is reasonably necessary for the protection of the

interests of the people of this state but not less frequently than once every five years.

2. Every health maintenance organization and provider shall submit its books and

records for the examinations and in every way facilitate the completion of the

examination. For the purpose of examinations, the commissioner may administer

oaths to, and examine the officers and insurance producers of, the health maintenance

organization and the principals of the providers concerning their business.

3. The expenses of examinations under this section must be assessed against the health

maintenance organization being examined and remitted to the commissioner.

4. In lieu of the examination, the commissioner may accept the report of an examination

made by the commissioner of another state.
N.D. Cent. Code § 26.1-20.1-01 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-01
26.1-20.1-01. Definitions
Status: in_force

26.1-20.1-01. Definitions

In this chapter, unless the context otherwise requires:

1. "Insurance premium finance company" means a person engaged in the business of

entering into or acquiring insurance premium finance agreements.

2. "Licensee" means a person holding a license issued under this chapter.

3. "Premium finance agreement" means an agreement by which an insured or

prospective insured promises to pay an insurance premium finance company the

amount advanced or to be advanced under the agreement to an insurer or to an

insurance producer in payment of premiums on an insurance policy together with a

finance charge. The term does not include an agreement to finance premiums when a

life or disability insurance policy is made the security or collateral for the repayment of

a debt.
N.D. Cent. Code § 26.1-46-03 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-03
26.1-46-03. Risk retention groups not chartered in this state - Requirements for operation
Status: in_force

26.1-46-03. Risk retention groups not chartered in this state - Requirements for

operation.

Risk retention groups chartered in states other than this state and seeking to do business

as a risk retention group in this state shall observe and abide by the laws of this state as follows:

1. Notice of operations and designation of commissioner as agent. Before offering

insurance in this state, a risk retention group shall submit to the commissioner on a

form prescribed by the national association of insurance commissioners all of the

following:

a. A statement identifying the state or states in which the risk retention group is

chartered and licensed as a liability insurance company, date of chartering, its

principal place of business, and such other information, including information on

its membership, as the commissioner of this state may require to verify that the

risk retention group is qualified under subsection 11 of section 26.1-46-01.

b. A copy of its plan of operation or a feasibility study and revisions of such plan or

study submitted to its state of domicile; provided, however, that the provision

relating to the submission of a plan of operation or a feasibility study does not

apply with respect to any line or classification of liability insurance which was

defined in the Product Liability Risk Retention Act of 1981 before October 27,

1986, and was offered before such date by any risk retention group which had

been chartered and operating for not less than three years before such date.

c. The risk retention group shall submit a copy of any revision to its plan of

operation or feasibility study required by section 26.1-46-02 at the same time that

the revision is submitted to the commissioner of its chartering state.

d. A statement of registration, for which a filing fee must be determined by the

commissioner, which designated the commissioner as its agent for the purpose of

receiving service of legal documents or process.

2. Financial condition. Any risk retention group doing business in this state shall submit to

the commissioner upon the commissioner's request all of the following:

a. A copy of the group's financial statement submitted to its state of domicile, which

must be certified by an independent public accountant and contain a statement of

opinion on loss and loss adjustment expense reserves made by a member of the

American academy of actuaries or a qualified loss reserve specialist according to

criteria established by the national association of insurance commissioners.

b. A copy of each examination of the risk retention group as certified by the

commissioner or public official conducting the examination.

c. Upon request by the commissioner, a copy of any audit performed with respect to

the risk retention group.

d. Such information as may be required to verify its continuing qualifications as a

risk retention group under subsection 11 of section 26.1-46-01.

3. Taxation.

a. All premiums paid for coverages within this state to risk retention groups are

subject to taxation at the same rate and subject to the same interest, fines, and

penalties for nonpayment that are applicable to foreign-admitted insurers.

b. To the extent insurance producers are utilized, the insurance producers shall

report and pay the taxes for the premiums for risks which the insurance

producers have placed with or on behalf of a risk retention group not chartered in

this state.

c. To the extent the insurance producers are not utilized or fail to pay the tax, each

risk retention group shall pay the tax for risks insured within the state. Further,

each risk retention group shall report all premiums paid to it for risks insured

within the state.

d. This subsection does not apply to risk retention groups doing business in this

state which have fewer than twenty-six resident members or insureds.

e. To the extent that insurance producers are utilized pursuant to section

26.1-46-11, each insurance producer shall keep a complete and separate record

of all policies procured from each risk retention group, which record must be open

to examination by the commissioner, as provided in sections 26.1-03-19.1

through 26.1-03-22. These records must, for each policy and each kind of

insurance provided thereunder, include the limit of liability, the time period

covered, the effective date, the name of the risk retention group which issued the

policy, the gross premium charged, and the amount of return premiums, if any.

4. Compliance with prohibited practices chapter. Any risk retention group, its insurance

producers and representatives, shall comply with chapter 26.1-04.

5. Examination regarding financial condition. Any risk retention group must submit to an

examination by the commissioner to determine its financial condition if the

commissioner of the jurisdiction in which the group is chartered has not initiated an

examination or does not initiate an examination, within sixty days after a request by

the commissioner of this state. Any such examination must be coordinated to avoid

unjustified repetition and conducted in an expeditious manner and in accordance with

the national association of insurance commissioners examiner handbook.

6. Notice to purchasers. Any policy issued by a risk retention group must contain in

ten-point type of the front page and the declaration page, the following notice:

NOTICE

This policy is issued by your risk retention group. Your risk retention group may

not be subject to all of the insurance laws and regulations of your state. State

insurance insolvency guaranty funds are not available for your risk retention

group.

7. Prohibited acts regarding solicitation or sale. The following acts by a risk retention

group are prohibited:

a. The solicitation or sale of insurance by a risk retention group to any person who is

not eligible for membership in such group.

b. The solicitation or sale of insurance by, or operation of, a risk retention group that

is in a hazardous financial condition or is financially impaired.

8. Prohibition on ownership by an insurance company. No risk retention group may be

allowed to do business in this state if an insurance company is directly or indirectly a

member or owner of such risk retention group, other than in the case of a risk retention

group all of whose members are insurance companies.

9. Delinquency proceedings. A risk retention group not chartered in this state and doing

business in this state shall comply with a lawful order issued in a voluntary dissolution

proceeding or in a delinquency proceeding commenced by a state insurance

commissioner if there has been a finding of financial impairment after an examination

under subsection 4.

10. Any risk retention group, its insurance producers, and representatives shall comply

with chapter 26.1-04. The terms of any insurance policy issued by any risk retention

group may not provide, or be construed to provide, coverage prohibited generally by

statute of this state or declared unlawful by the highest court of this state whose law

applies to such policy.

11. A risk retention group that violates any provisions of this chapter will be subject to fines

and penalties, including revocation of its right to do business in this state, applicable to

licensed insurers generally. In addition to complying with the requirements of this

section, any risk retention group operating in this state prior to enactment of this

chapter, within thirty days after the effective date of this chapter, shall comply with the

provision of subdivision a of subsection 1.

12. A risk retention group that is not chartered in this state but is in compliance with this

section is deemed an authorized insurer for the satisfaction of any requirement, under

the laws of this state, that insurance coverage be placed with an authorized insurer.
N.D. Cent. Code § 26.1-11-11 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-11
26.1-11-11. Consent to service of process - Unauthorized insurance company
Status: in_force

26.1-11-11. Consent to service of process - Unauthorized insurance company

Any of the following acts in this state, effected by mail or otherwise, by any unauthorized

foreign or alien insurance company is equivalent to and constitutes an appointment by the

company of the commissioner as its attorney upon whom may be served all lawful process in

any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary arising out

of any insurance contract, and any such act signifies its agreement that the service of process is

of the same legal force and validity as personal service in this state, upon such insurer:

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

corporations or limited liability companies authorized to do business in this state.

2. The solicitation of applications for such contracts.

3. The collection of premiums, membership fees, assessments, or other considerations

for such contracts.

4. Any other transaction of insurance business.
N.D. Cent. Code § 26.1-13-35 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-35
26.1-13-35. County mutual insurance company - Reports to commissioner
Status: in_force

26.1-13-35. County mutual insurance company - Reports to commissioner

Each county mutual insurance company shall file an annual report with the commissioner

no later than March first of each year which must be verified by at least two principal officers of

the company and which must cover the preceding calendar year. The commissioner may

require additional reports as are deemed necessary and appropriate to enable the

commissioner to carry out the commissioner's duties under this chapter. The reports must be on

forms prescribed by the commissioner. The commissioner may also require a company that

operates in more than twenty counties to file audited financial statements as deemed necessary.
N.D. Cent. Code § 26.1-12.2-04 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-04
26.1-12.2-04. Optional provisions of plan of conversion
Status: in_force

26.1-12.2-04. Optional provisions of plan of conversion

1. The plan of conversion may allocate to a tax-qualified employee benefit plan

nontransferable subscription rights to purchase up to ten percent of the capital stock of

the converting mutual 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 of section 26.1-12.2-03. A tax-qualified employee benefit

plan may exercise subscription rights granted under this subsection regardless of the

total number of shares purchased by eligible members. If eligible members purchase

shares sufficient to yield gross proceeds equal to the maximum of the valuation range

established by subsection 4 of section 26.1-12.2-03, then the tax-qualified employee

benefit plan may purchase additional shares of capital stock of the converting mutual

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 of section 26.1-12.2-03 in an amount sufficient to equal ten percent of the

total shares of capital stock of the converted stock company outstanding.

2. The plan may provide that other classes of subscribers approved by the commissioner

shall receive nontransferable subscription rights to purchase capital stock of the

converting 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 of section 26.1-12.2-03 provided that such subscription

rights are subordinate to the subscription rights of eligible members. Other classes of

subscribers that may be approved by the commissioner include:

a. Members of the converting mutual company which became members after the

date fixed for establishing eligible members;

b. The shareholders 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 of section 26.1-12.2-03; or

c. The shareholders of another corporation that is a party to an acquisition, merger,

consolidation, or other similar transaction with the converting mutual company.
N.D. Cent. Code § 26.1-29-07 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-07
26.1-29-07. Measure of insurable interest
Status: in_force

26.1-29-07. Measure of insurable interest

The measure of an insurable interest in property is the extent to which the insured might be

damnified by loss or injury of the property.
N.D. Cent. Code § 26.1-45-04.1 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-04.1
26.1-45-04.1. Adoption of long-term care benefits comparison guides by commissioner
Status: in_force

26.1-45-04.1. Adoption of long-term care benefits comparison guides by

commissioner.

The insurance commissioner shall adopt rules to create a long-term care benefits

comparison guide to be presented at the point of sale between the client and insurance

producer. The guide must include information regarding nursing home coverage and

alternatives to nursing home coverage.
N.D. Cent. Code § 26.1-36.11-04 — ND Code / Title 26.1 / Chapter 26.1-36.11 / Section 26.1-36.11-04
26.1-36.11-04. Rulemaking authority
Status: in_force

26.1-36.11-04. Rulemaking authority

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

the provisions of this chapter.
N.D. Cent. Code § 26.1-26.8-20 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-20
26.1-26.8-20. Vendor authority
Status: in_force

26.1-26.8-20. Vendor authority

The commissioner may contract with nongovernmental entities, including the national

association of insurance commissioners or any affiliate or subsidiary the national association of

insurance commissioners oversees, to perform any ministerial functions, including the collection

of fees, related to public adjuster licensing.
N.D. Cent. Code § 26.1-27.1-07 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-07
26.1-27.1-07. Rulemaking authority
Status: in_force

26.1-27.1-07. Rulemaking authority

The commissioner shall adopt rules as necessary to implement this chapter.
N.D. Cent. Code § 26.1-40-19 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-19
26.1-40-19. Certificate of authority to issue automobile warranty policy - Issuance - Qualifications - Renewal
Status: repealed

26.1-40-19. Certificate of authority to issue automobile warranty policy - Issuance -

Qualifications - Renewal.

Repealed by S.L. 2001, ch. 107, § 4.
N.D. Cent. Code § 26.1-13-15 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-15
26.1-13-15. Territorial limits of county mutual company's operations - Terms of policies - Property insurable
Status: in_force

26.1-13-15. Territorial limits of county mutual company's operations - Terms of

policies - Property insurable.

1. A county mutual insurance company may not insure any property beyond the

company's authorized territory of operation except as provided in subsection 2 of

section 26.1-13-12 and except that this territorial limitation does not apply to

reinsurance contracts.

2. A policy may not be issued to exceed five years.

3. A policy may not be issued covering property located within the platted limits of an

incorporated city in this state, except the policy may provide coverage as specified

under sections 26.1-13-14 and 26.1-13-16 within the platted limits of the incorporated

city on:

a. The place of residence;

b. A rental property that is no larger than a four residential rental unit;

c. A nonresidential property that is not used by the general public; or

d. A nonresidential property that is part of an existing policy.

4. The company may insure all property located outside of incorporated cities within the

limits of the company's territory, as provided under section 26.1-13-02.

5. Policies issued under subsection 3 on property located within the platted limits of an

incorporated city with a population over ten thousand must conform to rules adopted

by the commissioner establishing requirements for underwriting risks and safeguarding

financial solvency. A company's net written premiums of the current year in cities with a

population over ten thousand may not exceed thirty-five percent of the gross written

premiums of the previous year.

6. A policy issued by the company, if the policy so provides, may cover loss or damage to

livestock, personal property, vehicles, and farm machinery while temporarily removed

from the premises of the insured to other locations.
N.D. Cent. Code § 26.1-09-08 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-08
26.1-09-08. Required assets - Reserve fund
Status: in_force

26.1-09-08. Required assets - Reserve fund

As used in this section, "net premiums or deposits" means the advance payments by

subscribers after deducting the amounts specifically provided for expenses in subscribers'

agreements. Assets in cash or in securities authorized for investment of funds of insurance

companies doing the same kind of business by the laws of the state in which the principal office

of the exchange is located must be maintained at all times in an amount equal to fifty percent of

the net annual advance premiums or deposits collected and credited to the accounts of

subscribers on policies having one year or less to run and pro rata on those for longer periods,

or in lieu thereof, one hundred percent of the net unearned premiums or deposits collected and

credited to the accounts of subscribers. In addition to those assets, there must be maintained a

reserve in the case of all classes of liability or similar kinds of insurance, in cash or in approved

or authorized securities, sufficient to discharge all liabilities on all outstanding losses arising

under policies issued, calculated on the basis of net premiums or deposits, and in accordance

with the laws relating to reserves for companies insuring similar risks. Whenever the assets are

less than the amount required by this section or less than one hundred thousand dollars,

whichever is the greater, the subscribers, or their attorney for them, shall make up the

deficiency.
N.D. Cent. Code § 26.1-13-24 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-24
26.1-13-24. Assessments for payment of losses and expenses
Status: repealed

26.1-13-24. Assessments for payment of losses and expenses

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-36-09.13 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.13
26.1-36-09.13. Medical services related to intoxication
Status: in_force

26.1-36-09.13. Medical services related to intoxication

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

organization may not deliver, issue, execute, or renew any major medical expense policy on a

group, individual, 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 any loss sustained or contracted in the consequence of the insured's being

intoxicated or under the influence of any narcotic. The coverage required under this section may

be subject to limitations under subdivision g of subsection 2 of section 26.1-36-04 or

subsection 15 of section 26.1-36-05.
N.D. Cent. Code § 26.1-47-01 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-01
26.1-47-01. Definitions
Status: in_force

26.1-47-01. Definitions

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

1. "Air ambulance" means a specially equipped aircraft licensed by the department of

health and human services for transporting patients.

2. "Air ambulance provider" means a publicly or privately owned organization that is

licensed or applies for licensure by the department of health and human services to

provide transportation and care of patients by air ambulance.

3. "Authorized representative" means:

a. A person to which a covered person has given express written consent to

represent the covered person;

b. A person authorized by law to provide substituted consent for a covered person;

or

c. If a covered person is unable to provide consent, the covered person's treating

health care professional or a family member of the covered person.

4. "Balance billing" means the practice of an air ambulance provider billing for the

difference between the air ambulance provider's charge and the health care insurer's

allowed amount.

5. "Commissioner" means the insurance commissioner of the state of North Dakota.

6. "Covered person" means an individual on whose behalf the health care insurer is

obligated to pay for or provide health care services.

7. "Facility" means an institution or other immobile health care setting providing physical,

mental, or behavioral health care services.

8. "Health benefit plan" means the health insurance policy or subscriber agreement

between the covered person or the policyholder and the health care insurer which

defines the services covered.

9. "Health care insurer" includes an insurance company as defined in section 26.1-02-01,

a health service corporation as defined in section 26.1-17-01, a health maintenance

organization as defined in section 26.1-18.1-01, and a fraternal benefit society as

defined in section 26.1-15.1-02.

10. "Health care provider" means licensed providers of health care services in this state.

11. "Health care services" means services rendered or products sold by a health care

provider within the scope of the provider's license. The term includes hospital, medical,

surgical, dental, vision, chiropractic, and pharmaceutical services or products.

12. "Network" means a group of preferred providers providing services under a network

plan.

13. "Network plan" means a health benefit plan that requires a covered person to use, or

creates incentives, including financial incentives, for a covered person to use health

care providers managed by, owned by, under contract with, or employed by the health

care insurer.

14. "Out-of-network" means a provider that is not providing the service under a network

plan.

15. "Preferred provider" means a duly licensed health care provider or group of providers

who have contracted with the health care insurer, under this chapter, to provide health

care services to covered persons under a health benefit plan.

16. "Preferred provider arrangement" means a contract between the health care insurer

and one or more health care providers which complies with all the requirements of this

chapter.

17. "Prior authorization" means confirmation by the covered person's health care insurer

that the air ambulance services sought to be provided by the air ambulance provider

meet the criteria for coverage under the covered person's health benefit plan as

defined by the provisions of the covered person's health benefit plan.
N.D. Cent. Code § 26.1-17-06 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-06
26.1-17-06. Authority of corporation writing optometric service contracts
Status: in_force

26.1-17-06. Authority of corporation writing optometric service contracts

A health service corporation writing optometric service contracts may:

1. Enter into contracts with subscribers whereby each subscriber, subscriber member,

officer, or employee is entitled to certain specified health services as provided in the

subscriber's contract.

2. Enter into contracts with similar corporations within or without the state for the

interchange of services to those included in subscription or other similar contracts, and

may provide subscription contracts for the substitution of such services in lieu of those

therein recited.

3. Enter into contracts with practitioners for the rendering of optometric service to

subscribers in accordance with the terms of the subscriber contract.

4. Enter into contracts with optical laboratories to provide material pursuant to contracts

with subscribers.
N.D. Cent. Code § 26.1-31.1-11 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-11
26.1-31.1-11. Rules
Status: in_force

26.1-31.1-11. Rules

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

the provisions of this chapter.
N.D. Cent. Code § 26.1-36-12.7 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.7
26.1-36-12.7. Freedom of choice for health care services
Status: in_force

26.1-36-12.7. Freedom of choice for health care services

1. As used in this section:

a. "Health benefit plan" has the same meaning as provided in section 26.1-36.3-01.

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

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

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

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

c. "Integrated delivery network" means a system of health care providers and

facilities which offer both health care services and health benefit plans.

2. A health insurer, including the Medicaid program, which is part of an integrated

delivery network may not obstruct patient choice by excluding a health care provider

licensed under the laws of this state from participating on the health insurer's panel of

providers if the provider is located within the geographic coverage area of the health

benefit plan and is willing and fully qualified to meet the terms and conditions of

participation, as established by the health insurer.
N.D. Cent. Code § 26.1-39-09.3 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-09.3
26.1-39-09.3. Fire protection class - Dispute
Status: in_force

26.1-39-09.3. Fire protection class - Dispute

1. This section applies to an insurance policy issued or renewed to insure real property in

this state.

2. Within thirty days following quoting, issuing, or renewing of the policy, the insured may

assert a fire protection class which differs from the class identified by the insurer and

the insurer shall implement this class. The insured shall present to the insurer a

credible basis for the assertion supported by factual information.

3. Within ninety days following receipt of the assertion by an insured, the insurer may

investigate the assertion and:

a. Change the fire protection class, effective from the date of issuance or renewal;

or

b. Document the basis for the original class and implement the original class

effective from the date of issuance or renewal.

4. After making a determination under subsection 3, the insurer shall inform the insured

of the determination.
N.D. Cent. Code § 26.1-03-19.2 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.2
26.1-03-19.2. Authority, scope, and scheduling of examinations
Status: in_force

26.1-03-19.2. Authority, scope, and scheduling of examinations

1. The commissioner or any of the commissioner's examiners may conduct an

examination under this chapter of any company whenever the commissioner in the

commissioner's sole discretion deems appropriate but shall at a minimum, conduct an

examination of every insurer licensed in this state not less frequently than once every

five years. In scheduling and determining the nature, scope, and frequency of the

examinations, the commissioner shall consider the matters as the results of financial

statement analyses and ratios, changes in management or ownership, actuarial

opinions, reports of independent certified public accountants, and other criteria as set

forth in the examiners' financial condition and market conduct handbook adopted by

the national association of insurance commissioners and in effect when the

commissioner exercises discretion under this section.

2. For purposes of completing an examination of any company under this chapter, the

commissioner may examine or investigate any person, or the business of any person,

insofar as the examination or investigation is, in the sole discretion of the

commissioner, necessary or material to the examination of the company.

3. In lieu of an examination under this chapter of any foreign insurer licensed in this state,

the commissioner may accept an examination report on the company as prepared by

the insurance department for the company's state of domicile or port-of-entry state

until January 1, 1994. Thereafter, the reports may only be accepted if the insurance

department was at the time of the examination accredited under the national

association of insurance commissioners' financial regulation standards and

accreditation program, or the examination is performed under the supervision of an

accredited insurance department or with the participation of one or more examiners

who are employed by an accredited state insurance department and who, after a

review of the examination workpapers and report, state under oath that the

examination was performed in a manner consistent with the standards and procedures

required by their insurance department, or the commissioner finds that the

examination was performed by the insurance department of a state that was

previously accredited under the national association of insurance commissioners but

has lost its accreditation, provided that state's consumer protection laws are no less

protective than those present under North Dakota law.
N.D. Cent. Code § 26.1-54-04 — ND Code / Title 26.1 / Chapter 26.1-54 / Section 26.1-54-04
26.1-54-04. Records
Status: in_force

26.1-54-04. Records

Notwithstanding any provision of this code making records confidential, the commissioner or

the commissioner's designee and the department of health and human services may receive

from and provide to federal and state agencies information gathered in the administration of the

exchange, including social security numbers, if the disclosure is necessary for the

commissioner, the department of health and human services, or the receiving entity to perform

its duties and responsibilities.
N.D. Cent. Code § 26.1-31-01 — ND Code / Title 26.1 / Chapter 26.1-31 / Section 26.1-31-01
26.1-31-01. Reinsurance contract defined
Status: in_force

26.1-31-01. Reinsurance contract defined

A reinsurance contract is one by which an insurer contracts with a third person to insure the

insurer against loss or liability by reason of an original insurance contract made by the insurer.
N.D. Cent. Code § 26.1-29-05 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-05
26.1-29-05. Insurable interest essential to insurance contract
Status: in_force

26.1-29-05. Insurable interest essential to insurance contract

The sole object of insurance is the indemnity of the insured, and if the insured has no

insurable interest, the contract is void.
N.D. Cent. Code § 26.1-13-06 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-06
26.1-13-06. Amendment of articles or bylaws
Status: repealed

26.1-13-06. Amendment of articles or bylaws

The articles of incorporation of a county mutual insurance company may be amended, and

its bylaws adopted, amended, or repealed, at any annual meeting of the company, or at any

special meeting called for that purpose, by the affirmative vote of two-thirds of the members

voting on the proposition.
N.D. Cent. Code § 26.1-26.9-08 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-08
26.1-26.9-08. License suspension, revocation, or refusal - Grounds
Status: in_force

26.1-26.9-08. License suspension, revocation, or refusal - Grounds

The commissioner may suspend, revoke, place on probation, or refuse to continue or issue

a license issued under this chapter if, after notice to the licensee or applicant and a hearing, the

commissioner finds as to the licensee any of the following conditions:

1. A materially untrue statement in the license application.

2. An acquisition or attempt to acquire a license through misrepresentation or fraud.

3. The applicant cheated on an examination for an insurance license.

4. Any cause for which issuance of the license could have been refused had it then

existed and been known to the commissioner at the time of issuance.

5. The applicant or licensee has been convicted of a felony or convicted of an offense, as

defined by section 12.1-01-04, determined by the commissioner to have a direct

bearing on a person's ability to serve the public as a licensee, or the commissioner

finds, after conviction of an offense, the person is not sufficiently rehabilitated under

section 12.1-33-02.1.

6. In the conduct of affairs under the license, the licensee has used fraudulent, coercive,

or dishonest practices, or has shown to be incompetent, untrustworthy, or financially

irresponsible.

7. A misrepresentation of the terms of any actual or proposed insurance contract.

8. The licensee knowingly solicited, procured, or sold unnecessary or excessive

insurance coverage to any person.

9. The licensee has forged another's name to an application for insurance.

10. An improper withholding of, misappropriating of, or converting to one's own use any

moneys belonging to policyholders, insurers, beneficiaries, or others received in the

course of one's insurance business.

11. The licensee has been found guilty of any unfair trade practice defined in this title or

fraud.

12. A violation of or noncompliance with any insurance laws of this state or a violation of or

noncompliance with any lawful rules or orders of the commissioner or of a

commissioner of another state.

13. The licensee's license has been suspended or revoked in any other state, province,

district, or territory for any reason or purpose other than noncompliance with

continuing education programs, or noncompliance with mandatory filing requirements

imposed upon a licensee by the state, province, district, or territory, provided the filing

does not directly affect the public interest, safety, or welfare.

14. The applicant or licensee has refused to respond within twenty days to a written

request by the commissioner for information regarding any potential violation of this

section.

15. Without express prior written approval from the commissioner, the licensee

communicates with a person the licensee knows has contacted the department

regarding an alleged violation committed by the licensee in an attempt to have the

complainant dismiss the complaint.

16. The licensee knowingly accepts insurance business from an individual who is not

licensed.

17. The applicant or licensee knowingly fails to comply with a court order imposing child

support obligation.

18. The applicant or licensee fails to file the required returns or pay the taxes due under

chapter 57-38 or comply with a court order directing payment of any income tax or

employer income tax withholding imposed by chapter 57-38.
N.D. Cent. Code § 26.1-22-10 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-10
26.1-22-10. Insurance for buildings and personal property - Additional coverage - Township and school district property
Status: in_force

26.1-22-10. Insurance for buildings and personal property - Additional coverage -

Township and school district property.

1. Upon application, the office shall provide for insurance against loss by fire, lightning,

inherent explosion, windstorm, cyclone, tornado and hail, explosions, riot attending a

strike, aircraft, smoke, vehicles, or may insure any other risks of direct physical loss,

subject to the restrictions and exclusions determined by the office.

a. Insurance under this section applies to all buildings owned by state agencies,

political subdivisions, and winter shows, and the fixtures and permanent contents

in the buildings.

b. Insurance coverage under this section may not exceed the insurable value of the

property.

c. State-owned buildings constructed after 1939 and fixtures and permanent

contents insured under this chapter must be insured at replacement cost unless

the office approves an alternate value.

d. The office may allow property to be insured on a blanket basis.

2. An insurance policy under this chapter must include the name of the insured, the

location and description of the insured property, the amount of insurance coverage,

and the amount of the assessment.

3. In lieu of or in addition to the coverage under this section, a state agency, political

subdivision, or winter show may purchase insurance from an authorized insurance

company for all:

a. Buildings and the contents of the buildings owned by the state mill and elevator

association.

b. Public buildings owned by a political subdivision.

c. Public libraries owned by the state or a political subdivision for damage through

vandalism.

4. The office shall develop guidelines to be used by state agencies, political subdivisions,

and winter shows to determine insurable values of property for insurance coverage

and indirect loss coverage under this chapter.

5. This chapter does not apply to the property of any township or school district located

outside of the incorporated limits of a city unless the township or school district

requests and applies for insurance coverage under this chapter. The application must

be approved in writing by the office to be effective.

6. A state agency, political subdivision, or winter show may not make payments, enter

contracts, or incur debt for insurance on buildings, fixtures, or permanent contents

except as provided under this chapter.

7. If the insurance is canceled under section 26.1-22-16, the state agency, political

subdivision, or winter show may procure insurance from any authorized insurance

company.

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

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

section 26.1-22-11.
N.D. Cent. Code § 26.1-33-42 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-42
26.1-33-42. Designation of trustee as beneficiary - Prior existence of will not required - Payments - Discharge
Status: in_force

26.1-33-42. Designation of trustee as beneficiary - Prior existence of will not required

- Payments - Discharge.

1. Under section 26.1-33-41, it is permissible to designate as beneficiary, payee, or

owner a trustee named in any inter vivos or testamentary trust whether or not such will

or codicil is in existence at the date of such designation. It is not necessary to the

validity of the trust that there be in existence a trust corpus other than the right to

receive the benefits or to exercise the rights resulting from such a designation.

2. It is also permissible to designate as a beneficiary, payee, or owner a trustee named or

to be named in, or ascertainable under, the will of the designator. Benefits or rights

resulting from such a designation are payable or transferable to the trustee upon

admission of the will or codicil to probate. Upon the payment of benefits to the trustee,

the benefits must be held, administered, and disposed of in accordance with the terms

of the testamentary trust created by the will or codicil. Payment of the benefits does

not cause the benefits or rights to be included in the property administered as part of

the designator's estate as subject to the claims of creditors.

3. If a trustee is designated pursuant to this section and no qualified trustee makes claim

to the benefits or rights resulting from the designation within one year of the death of

the designator, or if it is satisfactory to the person obligated to make the payment or

transfer as furnished within the one-year period that there is or will be no trustee to

receive the proceeds, payment or transfer must be made to the person or

representative of the designator, unless otherwise provided by the designation or other

controlling agreement made during the lifetime of the designator.

4. The payment of the benefits due or a transfer of the rights given under a designation

pursuant to this section and the receipt of the payment or transfer executed by the

trustee or other authorized payee constitutes a full discharge and acquittance of the

person or institution obligated to make payment or transfer.
N.D. Cent. Code § 26.1-33-43 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-43
26.1-33-43. Commingling of death benefits with trust assets
Status: in_force

26.1-33-43. Commingling of death benefits with trust assets

Death benefits held in trust may be commingled with any other assets which may properly

come into the trust. Sections 26.1-33-41 and 26.1-33-42 do not invalidate previous life

insurance policy beneficiary designations naming trustees of trusts established by will.