N.D. Cent. Code § 26.1-33-05 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-05
26.1-33-05. Provisions required in life policy
Status: in_force

26.1-33-05. Provisions required in life policy

No life insurance policy may be issued or delivered in this state, unless the policy contains:

1. A provision that all premiums are payable in advance either at the home office of the

company, or to an agent of the company, upon delivery of a receipt signed by one or

more of the officers who are named in the policy.

2. A provision that the policyholder is entitled to a thirty-one-day grace period for the

payment of every premium after the first, which may be subject to an interest charge,

during which grace period the insurance continues in force. The provision may contain

a stipulation that if the insured dies during the grace period, the overdue premium will

be deducted in any settlement under the policy.

3. A provision that the policy constitutes the entire contract between the parties and is

incontestable after it has been in force during the lifetime of the insured for two years

from its date, except for nonpayment of premiums and except for violations of the

policy relating to naval or military service in time of war, and, at the option of the

company, provisions relative to benefits in the event of total and permanent disability

and provisions that grant additional insurance specifically against death by accident

also may be excepted.

4. A provision that all statements made by the insured, in the absence of fraud, are

representations and not warranties, and that no such statement avoids the policy

unless it is contained in a written application and a copy of the application is endorsed

upon or attached to the policy when issued.

5. A provision that if the age of the insured has been understated, the amount payable

under the policy is such as the premium would have purchased at the correct age.

6. A provision that the policy participates in the surplus of the company and that,

beginning not later than the end of the third policy year, the company annually will

determine and account for the portion of the divisible surplus accruing on the policy,

and that the owner of the policy has the right each year to have the current dividend

arising from such participation paid in cash; and if the policy provides other dividend

options, it must provide further which one of the four standard options is effective if the

owner of the policy does not elect any of the other options. The four standard options

are payment in cash, application toward payment of any premiums, application to the

purchase of paid-up additions to the policy, or accumulation to the credit of the policy

with interest at the rate provided for in the policy and payable at the maturity of the

policy or at the anniversary of the policy. This provision, however, is not required in

nonparticipating policies.

7. A provision that after the policy has been in force three years, the company at any time

while the policy is in force, will advance on proper assignment of the policy and on the

sole security thereof, at a specified rate of interest, a sum equal to, or at the option of

the owner of the policy, less than, the reserve at the end of the current policy year on

the policy and on any dividend additions thereto, computed according to a mortality

table, interest rate, and method of valuation permitted by chapter 26.1-35, less a sum

not more than two and one-half percent of the amount insured by the policy and of any

dividend additions thereto; and that the company will deduct from the loan value any

existing indebtedness on the policy and any unpaid balance of the premium for the

current policy year, and may collect interest in advance on the loan to the end of the

current policy year. The provision may provide further that the loan may be deferred for

not exceeding six months after the application for the loan is made. It must be

stipulated further in the policy that failure to repay any advance or to pay interest

thereon does not void the policy unless the total indebtedness thereon to the company

equals or exceeds the loan value at the time of the failure nor until one month after

notice has been mailed by the company to the last-known address of the insured and

of the assignee, if any. No other condition may be exacted as a prerequisite to any

such advance. This provision is not required in a policy of term insurance.

8. A provision that if, in event of default in premium payments, the value of the policy is

applied to the purchase of other insurance, and if the insurance is in force and the

original policy has not been surrendered to the company and canceled, the policy may

be reinstated within three years from the default upon evidence of insurability

satisfactory to the company and payment of arrears of premiums with interest.

9. A provision that when a policy becomes a claim by the death of the insured, settlement

must be made upon receipt of due proof of death, or not later than two months after

receipt of the proof, and must include reasonable interest accrued from the date of

death so long as a proof of death is filed within one hundred eighty days after the date

of the death.

10. A table showing the amounts of installments in which the policy may provide its

proceeds may be payable.

11. A title on the face and on the back of the policy correctly describing the policy.

12. A statement whether any conditions or restrictions of liability by reason of travel,

occupation, change of residence, or suicide are provided. These restrictions, except in

the case of armed forces or military service in time of war, may only be effective during

the first year after the issuance of the policy for suicide and for two years after the

issuance of the policy in all other instances.

13. A provision that in the event of the death of an insured, the insurer will refund within

thirty days after notice to the insurer of the insured's death the portion of the premium,

fee, or other sum paid beyond the month of death. This provision does not apply to

term life insurance, flexible premium life insurance, or to any policy when the insurer

has a valid defense to the payment of benefits under the policy.

Any of the foregoing provisions or portions thereof, relating to premiums not applicable to single

premium policies, may not be incorporated to the extent to which they are inapplicable in a

single premium policy.
N.D. Cent. Code § 26.1-13-33 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-33
26.1-13-33. Articles and bylaws of mutual reinsurance company - Certificate of authority - Right to do business
Status: repealed

26.1-13-33. Articles and bylaws of mutual reinsurance company - Certificate of

authority - Right to do business.

Repealed by S.L. 2019, ch. 236, § 16.
N.D. Cent. Code § 26.1-53.1-15 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-15
26.1-53.1-15. Bundled products
Status: in_force

26.1-53.1-15. Bundled products

1. If a discount plan is bundled with other products, the bundled product must clearly

identify the discount plan component separately from each other component.

2. A discount plan organization that is a health insurer licensed pursuant to title 26.1

which provides a discount plan product that is incidental to the insured product is not

subject to this section.

3. If a discount plan is bundled with an insurance product, the discount plan organization

or marketer selling such product must be licensed pursuant to chapter 26.1-26.
N.D. Cent. Code § 26.1-19-09 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-09
26.1-19-09. Control prohibited
Status: in_force

26.1-19-09. Control prohibited

A prepaid legal services organization may not attempt to control any attorney in the exercise

of the attorney's professional judgment.
N.D. Cent. Code § 26.1-25.2-04 — ND Code / Title 26.1 / Chapter 26.1-25.2 / Section 26.1-25.2-04
26.1-25.2-04. Prohibited use of prior owner's history
Status: in_force

26.1-25.2-04. Prohibited use of prior owner's history

An insurer may not decline to insure a property not previously owned by an applicant based

solely upon the loss history of a previous owner of the property, unless the insurer can provide

evidence that the previous owner did not repair the damage.
N.D. Cent. Code § 26.1-07-14 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-14
26.1-07-14. Court may order liquidation of company - Commissioner to direct liquidation - Procedure
Status: repealed

26.1-07-14. Court may order liquidation of company - Commissioner to direct

liquidation - Procedure.

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-15.1-02 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-02
26.1-15.1-02. Fraternal benefit societies
Status: in_force

26.1-15.1-02. Fraternal benefit societies

Any incorporated society, order, or supreme lodge without capital stock, including one

exempted under subdivision b of subsection 1 of section 26.1-15.1-37 whether incorporated or

not, conducted solely for the benefit of its members and their beneficiaries and not for profit,

operated on a lodge system with ritualistic form of work, having a representative form of

government, and which provides benefits in accordance with this chapter, is a fraternal benefit

society.
N.D. Cent. Code § 26.1-06.2-05 — ND Code / Title 26.1 / Chapter 26.1-06.2 / Section 26.1-06.2-05
26.1-06.2-05. Prohibited acts during supervision
Status: in_force

26.1-06.2-05. Prohibited acts during supervision

During the period of supervision, the commissioner or the commissioner's designated

appointee shall serve as the administrative supervisor. The commissioner may provide that the

insurer may not do any of the following things during the period of supervision, without the prior

approval of the commissioner or the commissioner's appointed supervisor:

1. Dispose of, convey, or encumber any of its assets or its business in force.

2. Withdraw any of its bank accounts.

3. Lend any of its funds.

4. Invest any of its funds.

5. Transfer any of its property.

6. Incur any debt, obligation, or liability.

7. Merge or consolidate with another company.

8. Approve new premiums or renew any policies.

9. Enter into any new reinsurance contract or treaty.

10. Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or

contract, except for nonpayment of premiums due.

11. Release, pay, or refund premium deposits, accrued cash or loan values, unearned

premiums, or other reserves on any insurance policy, certificate, or contract.

12. Make any material change in management.

13. Increase salaries and benefits of officers or directors or the preferential payment of

bonuses, dividends, or other payments deemed preferential.
N.D. Cent. Code § 26.1-47-04 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-04
26.1-47-04. Preferred provider participation requirements
Status: in_force

26.1-47-04. Preferred provider participation requirements

Health care insurers may place reasonable limits on the number of classes of preferred

providers which satisfy the standards set forth by the health care insurer, provided that there be

no discrimination against any providers on the basis of religion, race, color, national origin, age,

sex, or marital status, and further provided that selection of preferred providers is made on the

combined basis of least cost and highest quality of service.
N.D. Cent. Code § 26.1-25.1-05 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-05
26.1-25.1-05. Initial notification
Status: in_force

26.1-25.1-05. Initial notification

1. If an insurer writing personal insurance uses credit information in underwriting or rating

a consumer, the insurer or the insurer's agent shall disclose, either on the insurance

application or at the time the insurance application is taken, that the insurer or the

insurer's agent may obtain credit information in connection with such application. Such

disclosure must be either written or provided to an applicant in the same medium as

the application for insurance. The insurer or the insurer's agent need not provide the

disclosure statement required under this section to any insured on a renewal policy if

such consumer has previously been provided a disclosure statement.

2. Use of the following example disclosure statement constitutes compliance with this

section: "In connection with this application for insurance, we may review your credit

report or obtain or use a credit-based insurance score based on the information

contained in that credit report. We may use a third party in connection with the

development of your insurance score."
N.D. Cent. Code § 26.1-17-14 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-14
26.1-17-14. Prisoner's coverage to continue - Conditions
Status: repealed

26.1-17-14. Prisoner's coverage to continue - Conditions

Repealed by S.L. 1985, ch. 316, § 22.
N.D. Cent. Code § 26.1-18.1-07 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-07
26.1-18.1-07. Requirements for group contract, individual contract, and evidence of coverage
Status: in_force

26.1-18.1-07. Requirements for group contract, individual contract, and evidence of

coverage.

1. a. Every group and individual contractholder is entitled to a group or individual

contract.

b. The contract may not contain provisions or statements which are unjust, unfair,

inequitable, misleading, deceptive, or which encourage misrepresentation as

defined by chapter 26.1-04.

c. The contract must contain a clear statement of the following:

(1) Name and address of the health maintenance organization.

(2) Eligibility requirements.

(3) Benefits and services within the service area.

(4) Emergency care benefits and services.

(5) Out-of-area benefits and services, if any.

(6) Copayments, deductibles, or other out-of-pocket expenses.

(7) Limitations and exclusions.

(8) Enrollee termination.

(9) Enrollee reinstatement, if any.

(10) Claims procedures.

(11) Enrollee grievance procedures.

(12) Continuation of coverage.

(13) Conversion.

(14) Extension of benefits, if any.

(15) Coordination of benefits, if applicable.

(16) Subrogation, if any.

(17) Description of the service area.

(18) Entire contract provision.

(19) Term of coverage.

(20) Cancellation of group or individual contractholder.

(21) Renewal.

(22) Reinstatement of group or individual contractholder, if any.

(23) Grace period.

(24) Conformity with state law.

An evidence of coverage may be filed as part of the group contract to describe

the provisions required in this subdivision.

2. In addition to those provisions required in subdivision c of subsection 1, an individual

contract must provide for a ten-day period to examine and return the contract and

have the premium refunded. If services were received during the ten-day period, and

the person returns the contract to receive a refund of the premium paid, the person

must pay for the services.

3. a. Every subscriber shall receive an evidence of coverage from the group

contractholder or the health maintenance organization.

b. The evidence of coverage may not contain provisions or statements which are

unfair, unjust, inequitable, misleading, deceptive, or which encourage

misrepresentation as defined by chapter 26.1-04.

c. The evidence of coverage must contain a clear statement of the provisions

required in subdivision c of subsection 1.

4. The commissioner may adopt rules establishing readability standards for individual

contract, group contract, and evidence of coverage forms.

5. No group or individual contract, evidence of coverage, or amendment thereto may be

delivered or issued for delivery in this state, unless its form has been filed with and

approved by the commissioner, as provided by sections 26.1-30-19 and 26.1-30-20.

6. The provisions set forth in sections 26.1-30-20 and 26.1-30-21 govern the approval

and disapproval of forms required to be filed under this section.

7. The commissioner may require the submission of whatever relevant information the

commissioner deems necessary in determining whether to approve or disapprove a

filing made pursuant to this section.
N.D. Cent. Code § 26.1-10.2-07 — ND Code / Title 26.1 / Chapter 26.1-10.2 / Section 26.1-10.2-07
26.1-10.2-07. Confidentiality
Status: in_force

26.1-10.2-07. Confidentiality

1. Any document, material, or other information, including the own risk and solvency

assessment summary report, in the possession of or control of the insurance

department which is obtained by, created by, or disclosed to the commissioner or any

other person under this chapter, is recognized by this state as being proprietary and to

contain trade secrets. Any such document, material, or other information is confidential

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

subject to discovery and not admissible in evidence in any private civil action.

However, the commissioner may use any document, material, or other information in

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

commissioner's official duties. The commissioner may not otherwise make the

document, material, or other information public without the prior written consent of the

insurer.

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

other own risk and solvency assessment-related information, through examination or

otherwise, while acting under the authority of the commissioner or with whom such

document, material, or other information is shared under this chapter may be permitted

or required to testify in any private civil action concerning any confidential document,

material, or information subject to subsection 1.

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

commissioner:

a. Upon request, may share any document, material, or other own risk and solvency

assessment-related information, including any confidential and privileged

document, material, or information subject to subsection 1 and any proprietary

and trade secret document and material with any other state, federal, or

international financial regulatory agency, including a member of any supervisory

college as defined in section 26.1-10-06.1, the national association of insurance

commissioners, or any third-party consultant designated by the commissioner,

provided the recipient agrees in writing to maintain the confidentiality and

privileged status of the own risk and solvency assessment-related document,

material, or other information and has verified in writing the legal authority to

maintain confidentiality.

b. May receive any document, material, or other own risk and solvency assessment-

related information, including any otherwise confidential and privileged document,

material, or information, and any proprietary and trade-secret information or

document, from regulatory officials of other foreign or domestic jurisdictions,

including a member of any supervisory college as defined in section 26.1-10-06.1

or from the national association of insurance commissioners, and shall maintain

as confidential or privileged any document, material, or information received with

notice or the understanding it is confidential or privileged under the laws of the

jurisdiction that is the source of the document, material, or information.

c. Shall enter a written agreement with the national association of insurance

commissioners or a third-party consultant governing sharing and use of

information provided under this chapter, consistent with this subsection which

must:

(1) Specify procedures and protocols regarding the confidentiality and security

of information shared with the national association of insurance

commissioners or a third-party consultant under this chapter, including

procedures and protocols for sharing by the national association of

insurance commissioners with other state regulators from states in which

the insurance group has domiciled insurers. The agreement must provide

the recipient agrees in writing to maintain the confidentiality and privileged

status of any own risk and solvency assessment-related document, material,

or other information and has verified in writing the legal authority to maintain

confidentiality;

(2) Specify ownership of information shared with the national association of

insurance commissioners or a third-party consultant under this chapter

remains with the commissioner and the national association of insurance

commissioner's or a third-party consultant's use of the information is subject

to the direction of the commissioner;

(3) Prohibit the national association of insurance commissioners or third-party

consultant from storing the information shared under this chapter in a

permanent database after the underlying analysis is completed;

(4) Require prompt notice to be given to an insurer for which confidential

information in the possession of the national association of insurance

commissioners or a third-party consultant under this chapter is subject to a

request or subpoena to the national association of insurance commissioners

or a third-party consultant for disclosure or production;

(5) Require the national association of insurance commissioners or a third-party

consultant to consent to intervention by an insurer in any judicial or

administrative action in which the national association of insurance

commissioners or a third-party consultant may be required to disclose

confidential information about the insurer shared with the national

association of insurance commissioners or a third-party consultant under

this chapter; and

(6) In the case of an agreement involving a third-party consultant, provide for

the insurer's written consent.

4. The sharing of any information or document by the commissioner under this chapter

does not constitute a delegation of regulatory authority or rulemaking, and the

commissioner is solely responsible for the administration, execution, and enforcement

of this chapter.

5. A waiver of any applicable privilege or claim of confidentiality in any document,

proprietary and trade-secret material, or other own risk and solvency

assessment-related information does not occur as a result of disclosure of the own risk

and solvency assessment-related information or document to the commissioner under

this section or as a result of sharing as authorized in this chapter.

6. Any document, material, or other information in the possession or control of the

national association of insurance commissioners or a third-party consultant under this

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

subpoena, and not subject to discovery and not admissible in evidence in any private

civil action.
N.D. Cent. Code § 26.1-45-05.1 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-05.1
26.1-45-05.1. Incontestability and rescission of long-term care insurance policy or certificate
Status: in_force

26.1-45-05.1. Incontestability and rescission of long-term care insurance policy or

certificate.

1. If a policy or certificate has been in force for less than six months, an insurer may not

rescind a long-term care insurance policy or certificate or deny an otherwise valid

long-term care insurance claim except upon a showing of misrepresentation that is

material to the acceptance for coverage.

2. If a policy or certificate has been in force for at least six months but less than two

years, an insurer may not rescind a long-term care insurance policy or certificate or

deny an otherwise valid long-term care insurance claim except upon a showing of

misrepresentation that is both material to the acceptance for coverage and that

pertains to the condition for which benefits are sought.

3. If a policy or certificate has been in force for two years, the policy or certificate may be

contested only upon a showing that the insured knowingly and intentionally

misrepresented relevant facts relating to the insured's health. The policy or certificate

may not be contested based upon misrepresentation alone.

4. A long-term care insurance policy or certificate may not be field-issued based on

medical or health status. For purposes of this section, "field-issued" means a policy or

certificate issued by an agent or a third-party administrator pursuant to the

underwriting authority granted to the agent or third-party administrator by an insurer.

5. If an insurer has paid benefits under the long-term care insurance policy or certificate,

the benefit payments may not be recovered by the insurer in the event that the policy

or certificate is rescinded.

6. In the event of the death of the insured, this section does not apply to the remaining

death benefit of a life insurance policy that accelerates benefits for long-term care. In

this situation, the remaining death benefits under these policies are governed by

section 26.1-33-05. In all other situations, this section applies to life insurance policies

that accelerate benefits for long-term care.
N.D. Cent. Code § 26.1-35-11 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-11
26.1-35-11. Minimum standard for accident and health insurance contracts
Status: in_force

26.1-35-11. Minimum standard for accident and health insurance contracts

For an accident and health insurance contract issued on or after the operative date of the

valuation manual, the standard prescribed in the valuation manual is the minimum standard of

valuation required under subsection 2 of section 26.1-35-01. For an accident and health

insurance contract issued after June 30, 1977, and before the operative date of the valuation

manual, the minimum standard of valuation is the standard adopted by the commissioner by

rule.
N.D. Cent. Code § 26.1-06.1-56 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-56
26.1-06.1-56. Attachment, garnishment, and levy of execution
Status: in_force

26.1-06.1-56. Attachment, garnishment, and levy of execution

During the pendency of a liquidation proceeding in this or any other state, whether the

liquidation proceeding is identified as such or not, no action or proceeding in the nature of an

attachment, garnishment, or levy of execution may be commenced or maintained in this state

against the delinquent insurer or its assets.
N.D. Cent. Code § 26.1-26-26 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-26
26.1-26-26. Temporary license as an insurance producer
Status: in_force

26.1-26-26. Temporary license as an insurance producer

The commissioner may issue a temporary license as an insurance producer for a period not

to exceed one hundred eighty days without requiring an examination if the commissioner

determines that the temporary license is necessary for the servicing of an insurance business in

the following cases:

1. To the surviving spouse, next of kin, administrator, executor, or employee of a licensed

insurance producer who died, or to the spouse, next of kin, employee, or legal

guardian of a licensed insurance producer who became disabled.

2. To a member or employee of a business entity, licensed as an insurance producer,

upon the death or disability of an individual designated as the principal insurance

producer in the business entity application or the license.

3. To the designee of a licensed insurance producer entering upon active service in the

armed forces of the United States.

4. In any other circumstance when the commissioner determines that the public interest

will best be served by the issuance of the license.
N.D. Cent. Code § 26.1-36-05 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-05
26.1-36-05. Group health policy or service contract standard provisions
Status: in_force

26.1-36-05. Group health policy or service contract standard provisions

Neither a group health insurance policy nor a group health service contract may be

delivered in this state unless it contains in substance the following provisions, or provisions that

in the opinion of the commissioner are more favorable to the persons insured and more

favorable to the policyholder or contractholder; provided, however, that subsections 5, 7, and 12

do not apply to credit accident and health insurance policies, that the standard provisions

required for individual health insurance policies do not apply to group health insurance policies,

and that if any provision of this section is in whole or in part inapplicable to or inconsistent with

the coverage provided by a particular form of policy or contract, the insurer shall omit from the

policy or contract any inapplicable provision or part of a provision, and shall modify any

inconsistent provision or part of the provision to make the provision contained in the policy or

contract consistent with the coverage provided by the policy or contract:

1. A provision that the policyholder or contractholder is entitled to a grace period of

thirty-one days for the payment of any premium due except the first, during which the

policy or contract continues in force, unless the policyholder or contractholder has

given the insurer written notice of discontinuance in advance of the date of

discontinuance and in accordance with the terms of the policy or contract. The policy

or contract may provide that the policyholder or contractholder is liable to the insurer

for the payment of a pro rata premium for the time the policy or contract was in force

during the grace period.

2. A provision that the validity of the policy or contract may not be contested except for

nonpayment of premiums, after it has been in force for two years from its date of issue;

and that the validity of the policy or contract may not be contested on the basis of a

statement made relating to insurability by any person covered under the policy or

contract after the insurance has been in force for two years during the person's lifetime

unless the statement is contained in a written instrument signed by the person making

the statement; provided, however, that no such provision precludes the assertion at

any time of defenses based upon the person's ineligibility for coverage under the

policy or contract.

3. A provision that a copy of the application, if any, of the policyholder or contractholder

will be attached to the policy or contract when issued, that all statements made by the

policyholder or contractholder or by the persons insured are deemed representations

and not warranties, and that no statement made by any insured person may be used

in any contest unless a copy of the instrument containing the statement is or has been

furnished to that person or, in the event of the death or incapacity of the insured

person, to the individual's beneficiary or personal representative.

4. A provision setting forth the conditions, if any, under which the insurer reserves the

right to require a person eligible for insurance to furnish evidence of individual

insurability satisfactory to the insurer as a condition to part or all of the individual's

coverage.

5. A provision specifying the additional exclusions or limitations, if any, applicable under

the policy or contract with respect to a disease or physical condition of a person, not

otherwise excluded from the person's coverage by name or specific description

effective on the date of the person's loss, which existed prior to the effective date of

the person's coverage under the policy or contract. Any such exclusion or limitation

may only apply to a disease or physical condition for which medical advice or

treatment was received by the person during the twelve months before the effective

date of the person's coverage. The exclusion or limitation may not apply to loss

incurred or disability commencing after the earlier of the end of a continuance period of

twelve months commencing on or after the effective date of the person's coverage

during all of which the person has received no medical advice or treatment in

connection with such disease or physical condition, or the end of the two-year period

commencing on the effective date of the person's coverage.

6. If the premiums or benefits vary by age, a provision specifying an equitable adjustment

of premiums or of benefits, or both, to be made in the event the age of a covered

person has been misstated. The provision must contain a clear statement of the

method of adjustment to be used.

7. A provision that the insurer will issue to the policyholder or contractholder for delivery

to each person insured a certificate setting forth a statement as to the insurance

protection to which that person is entitled, to whom the insurance benefits are payable,

and a statement as to any family member's or dependent's coverage.

8. A provision that written notice of claim must be given to the insurer within twenty days

after the occurrence or commencement of any loss covered by the policy or contract.

Failure to give notice within this time does not invalidate nor reduce any claim if it is

shown that it was not reasonably possible to give the notice and that notice was given

as soon as was reasonably possible.

9. A provision that the insurer will furnish to the person making claim, or to the

policyholder or contractholder for delivery to the person making claim, the forms

usually furnished for filing proof of loss. If the forms are not furnished before the

expiration of fifteen days after the insurer receives notice of any claim under the policy

or contract, the person making the claim is deemed to have complied with the

requirements of the policy or contract as to proof of loss upon submitting within the

time fixed in the policy or contract for filing proof of loss, written proof covering the

occurrence, character, and extent of the loss for which claim is made.

10. A provision that in the case of claim for loss of time for disability, written proof of loss

must be furnished to the insurer within ninety days after the commencement of the

period for which the insurer is liable, and that subsequent written proof of continuance

of the disability must be furnished to the insurer at intervals the insurer may

reasonably require, and that in the case of claim for any other loss, written proof of

loss must be furnished to the insurer within ninety days after the date of loss. Failure to

furnish the proof within this time does not invalidate nor reduce any claim if it was not

reasonably possible to furnish the proof within that time, provided the proof is

furnished as soon as reasonably possible and in no event, except in the absence of

legal capacity of the claimant, later than one year from the time proof is otherwise

required.

11. A provision that all benefits payable under the policy or contract other than benefits for

loss of time or unless subject to section 26.1-36-37.1 will be payable not more than

sixty days after receipt of due proof of loss. All accrued benefits payable under the

policy or contract for loss of time will be paid at least monthly during the continuance of

the period for which the insurer is liable, and that any balance remaining unpaid at the

termination of that period will be paid as soon as possible after receipt of proof of loss.

12. A provision that benefits for loss of life of the person insured will be payable to the

beneficiary designated by the insured person. If the policy or contract contains

conditions pertaining to family status, however, the beneficiary may be the family

member specified by the policy or contract terms. In either case, payment of these

benefits is subject to the provisions of the policy or contract in the event the

designated or specified beneficiary is not living at the death of the insured person. All

other benefits of the policy or contract are payable to the insured person. The policy or

contract may also provide that if any benefit is payable to the estate of a person, or to

a person who is a minor or otherwise not competent to give a valid release, the insurer

may pay the benefit, up to an amount not exceeding five thousand dollars, to any

relative by blood or connection by marriage of the person deemed by the insurer to be

equitably entitled to the benefit.

13. A provision that the insurer may examine the individual for whom claim is made when

and so often as it may reasonably require during the pendency of claim under the

policy or contract and also may make an autopsy in case of death when the autopsy is

not prohibited by law.

14. A provision that no action may be brought to recover on the policy or contract prior to

the expiration of sixty days after proof of loss has been filed in accordance with the

requirements of the policy or contract and that the action may not be brought at all

unless brought within three years from the expiration of the time which proof of loss is

required by the policy or contract.

15. A provision that except as otherwise provided under this subsection, the insurer is not

liable for any loss to which a contributing cause was the insured's commission of or

attempt to commit a crime or to which a contributing cause was the insured's

engagement in an illegal occupation. However, under this subsection the insurer is

liable for a loss to the extent the crime committed was a misdemeanor violation of

section 39-08-01.
N.D. Cent. Code § 26.1-32-04 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-04
26.1-32-04. Willful act exonerates insurer, negligence does not
Status: in_force

26.1-32-04. Willful act exonerates insurer, negligence does not

An insurer is not liable for a loss caused by the willful act of the insured, but the insurer is

not exonerated by the negligence of the insured or of the insured's agents or others.
N.D. Cent. Code § 26.1-25-11 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-11
26.1-25-11. Joint underwriting or joint reinsurance
Status: repealed

26.1-25-11. Joint underwriting or joint reinsurance

Repealed by S.L. 1991, ch. 302, § 26.
N.D. Cent. Code § 26.1-02-01.1 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-01.1
26.1-02-01.1. Definition of limited benefit policy - Application
Status: in_force

26.1-02-01.1. Definition of limited benefit policy - Application

In this title, "limited benefit policy" means a policy or certificate issued under a group

insurance policy that provides coverage for accident-only, credit, dental, vision, Medicare

supplement, long-term care, or disability income insurance; coverage issued as a supplement to

liability insurance, or automobile medical payment or no-fault insurance; or a policy or certificate

of specified disease, hospital confinement indemnity, or any other type of limited benefit health

insurance. Any statute that becomes effective after January 1, 1997, and affects accident and

health insurance, or any hospital, medical, or major medical policy, whether issued on a group

or individual basis, does not apply to a limited benefit policy unless the statute specifically

identifies application to a limited benefit policy.
N.D. Cent. Code § 26.1-37-07 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-07
26.1-37-07. Provisions of policies and certificates of insurance - Disclosure to debtors
Status: in_force

26.1-37-07. Provisions of policies and certificates of insurance - Disclosure to

debtors.

1. Before the debtor elects to purchase consumer credit insurance in connection with a

credit transaction, the following must be disclosed to the debtor in writing:

a. That the purchase of consumer credit insurance is optional and not a condition of

obtaining credit approval.

b. If more than one kind of consumer credit insurance is being made available to the

debtor, whether the debtor can purchase each kind separately or the multiple

coverages only as a package.

c. The conditions of eligibility, if any.

d. That if the consumer has other insurance that covers the risk, the consumer may

not want or need credit insurance.

e. That within the first thirty days after receiving the individual policy or group

certificate, the debtor may cancel the coverage and have all premiums paid by

the debtor refunded or credited. Thereafter, the debtor may cancel the policy at

any time during the term of the loan and receive a refund of any of the unearned

premium. However, only in those instances when insurance is a requirement for

the extension of credit, the debtor may be required to offer evidence of alternative

insurance acceptable to the creditor at the time of cancellation.

f. A brief description of the coverage, including a description of the amount, the

term, any exceptions, limitations, and exclusions, the insured event, any waiting

or elimination period, any deductible, any applicable waiver of premium provision,

to whom the benefits would be paid, and the premium rate for each coverage or

for all coverages in a package.

g. That if the premium or insurance charge is financed, it will be subject to finance

charges at the rate applicable to the credit transaction.

2. The disclosures in subsection 1 must be provided in the following manner:

a. In connection with consumer credit insurance offered contemporaneously with the

extension of credit or offered through direct mail advertisements, disclosure must

be made in writing and presented to the consumer in a clear and conspicuous

manner.

b. In conjunction with the offer of credit insurance subsequent to the extension of

credit by other than direct mail advertisements, disclosure may be provided orally

so long as written disclosures are provided to the debtor no later than the earlier

of:

(1) Ten days after the election of coverage; or

(2) The date any other written material is provided to the debtor.

3. All consumer credit insurance must be evidenced by an individual policy or a group

certificate of insurance which must be delivered to the debtor.

4. The individual policy or group certificate must, in addition to other requirements of law,

set forth the following:

a. The name and home-office address of the insurer;

b. The name or names of the debtor or debtors or in the case of a group certificate,

the identity by name or otherwise of the debtor or debtors;

c. The premium or amount of payment by the debtor separately for each kind of

coverage or for all coverages in a package, except that for open-end loans, the

premium rate and the balance to which the premium rate applies;

d. A full description of the coverage or coverages, including the amount and term

thereof, and any exceptions, limitations, and exclusions;

e. A statement that the benefits will be paid to the creditor to reduce or extinguish

the unpaid debt or to repair or replace the property and, whenever the amount of

insurance benefit exceeds the unpaid debt that any excess is payable to a

beneficiary, other than the creditor, named by the debtor or to the debtor's estate;

and

f. If the scheduled term of insurance is less than the scheduled term of the credit

transaction, a statement to that effect on the face of the individual policy or group

certificate in not less than ten-point bold-faced type.

5. Unless the individual policy or group certificate of insurance is delivered to the debtor

at the time the debt is incurred, or at such other time that the debtor elects to purchase

coverage, a copy of the application for the policy or a notice of proposed insurance,

signed by the debtor and setting forth the name and home-office address of the

insurer, the name or names of the debtor, the premium or amount of payment by the

debtor for the insurance and the amount, term, and a brief description of the coverage

provided, must be delivered to the debtor at the time the debt is incurred or the

election to purchase coverage is made. The copy of the application or notice of

proposed insurance must also refer exclusively to insurance coverage, and must be

separate and apart from the loan, sale, or other credit statement of account,

instrument, or agreement, unless the information required by this subsection is

prominently set forth in that material. Upon acceptance of the insurance by the insurer

and within thirty days of the date upon which the debt is incurred or the election to

purchase coverage is made, the insurer shall cause the individual policy or group

certificate of insurance to be delivered to the debtor. The application or notice of

proposed insurance must state that upon acceptance by the insurer, the insurance

becomes effective as provided in section 26.1-37-06.

6. The application, notice of proposed insurance, or certificate may be used to fulfill all of

the requirements of subsections 1 and 4 if it contains all of the information required by

those subsections.

7. The debtor has thirty days from the date the debtor receives either the individual policy

or the group certificate to review the coverage purchased. At any time within the

thirty-day period, the debtor may contact the creditor or insurer issuing the policy or

certificate and request that the coverage be canceled. The individual policy or group

certificate may require the request to be in writing or that the policy or certificate be

returned to the insurer, or both. The debtor must, within thirty days of the request,

receive a full refund or credit of all premiums or insurance charges paid by the debtor.

8. If the named insurer does not accept the risk, the debtor must receive a policy or

certificate of insurance setting forth the name and home-office address of the

substituted insurer and the amount of the premium to be charged, and if the amount of

premium is less than that set forth in the notice of proposed insurance an appropriate

refund must be made within thirty days. If no insurer accepts the risk, then all

premiums paid must be refunded or credited within thirty days of application to the

person entitled thereto.

9. For the purpose of subsection 5, an individual policy or group certificate delivered in

conjunction with an open-end consumer credit agreement or any consumer credit

insurance requested by the debtor after the date of the debt must be deemed to be

delivered at the time the debt is incurred or election to purchase coverage is made if

the delivery occurs within thirty days of the date the insurance is effective.

10. An individual policy or group certificate delivered in conjunction with an open-end

credit agreement continues from its effective date through the term of the agreement

unless the individual policy or group certificate is terminated in accordance with its

terms at an earlier date.

11. Credit property insurance coverage, at a minimum, must include the coverages in the

standard fire policy with coverage attachment and extended coverage endorsement

and must cover a substantial risk of loss of or damage to the property related to the

credit transaction.
N.D. Cent. Code § 26.1-06-05 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-05
26.1-06-05. Hearing
Status: in_force

26.1-06-05. Hearing

Any hearing pursuant to this chapter must be held within forty days of the date a filing is

made pursuant to section 26.1-06-02. Adjudications made pursuant to this chapter must be

made within sixty days after the filing. Upon filing an application with the commissioner for a

hearing under this section, the target company shall deposit with the commissioner the sum the

commissioner requires to defray the costs of the hearing and any investigation which the

commissioner makes in connection therewith. If the commissioner finds that the takeover bid is

in violation of chapters 26.1-05 and 26.1-07 or that effective provision is not made for fair and

full disclosure to offerees of all information material to a decision to accept or reject the offer, or

that the takeover bid would comply with this section if amended in certain respects, or that the

takeover bid is not in violation of chapters 26.1-04, 26.1-05, and 26.1-07 and that effective

provision is made for fair and full disclosure to offerees of all information material to a decision

to accept or reject the offer, the commissioner shall so adjudicate.
N.D. Cent. Code § 26.1-36-06.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-06.1
26.1-36-06.1. Coverage for off-label uses of drugs
Status: in_force

26.1-36-06.1. Coverage for off-label uses of drugs

1. In this section:

a. "Coverage of a drug" includes medically necessary services associated with the

administration of the drug.

b. "Medical literature" means scientific studies published in a peer review national

medical journal.

c. "Off-label use of drugs" means prescribing drugs for treatments other than those

stated in the labeling approved by the federal food and drug administration.

d. "Standard reference compendia" means the United States pharmacopeia drug

information or American hospital formulary service drug information.

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

organization that provides coverage for drugs may not issue, deliver, execute, or

renew any health insurance policy or health service contract on an individual, group,

blanket, franchise, or association basis which excludes coverage of a drug for a

particular indication on the grounds the drug has not been approved by the federal

food and drug administration for that indication if the drug is recognized for treatment

of the indication in one of the standard reference compendia or medical literature.

3. The insurance commissioner may direct an insurer or contractor regulated by this

section to make payments as required by this section.

4. The state health officer may appoint a panel of up to eight qualified medical experts to

review off-label uses of drugs not included in the standard reference compendia or

medical literature. This panel shall advise the insurance commissioner whether a

particular off-label use is medically appropriate and shall make recommendations

regarding payment of off-label use.

5. This section does not alter existing law regarding provisions limiting the coverage of

drugs that have not been approved by the federal food and drug administration; does

not require coverage for any drug when the federal food and drug administration has

determined its use to be contraindicated; and does not require coverage for

experimental drugs not otherwise approved for any indication by the federal food and

drug administration.
N.D. Cent. Code § 26.1-03-22 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-22
26.1-03-22. State auditor to make examination when commissioner is disqualified
Status: in_force

26.1-03-22. State auditor to make examination when commissioner is disqualified

If the commissioner is a director, officer, agent, attorney, or stockholder of, or is interested

directly in, any insurance company except as an insured, the state auditor or a person

appointed by the state auditor shall examine the company. No officer or agent of any insurance

company doing business in this state may be appointed to examine the affairs of the company.
N.D. Cent. Code § 26.1-06.1-27 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-27
26.1-06.1-27. Voidable preferences and liens
Status: in_force

26.1-06.1-27. Voidable preferences and liens

1. a. A preference is a transfer of any of the property of an insurer to or for the benefit

of a creditor, for or on account of an antecedent debt, made or suffered by the

insurer within one year before the filing of a successful petition for liquidation

under this chapter, the effect of which transfer may be to enable the creditor to

obtain a greater percentage of this debt than another creditor of the same class

would receive. If a liquidation order is entered while the insurer is already subject

to a rehabilitation order, then such transfers must be deemed preferences if made

or suffered within one year before the filing of the successful petition for

rehabilitation, or within two years before the filing of the successful petition for

liquidation, whichever time is shorter.

b. Any preference may be avoided by the liquidator if:

(1) The insurer was insolvent at the time of the transfer;

(2) The transfer was made within four months before the filing of the petition;

(3) The creditor receiving it or to be benefited thereby or the creditor's agent

acting with reference thereto had, at the time when the transfer was made,

reasonable cause to believe that the insurer was insolvent or was about to

become insolvent; or

(4) The creditor receiving it was an officer, or any employee or attorney or other

person who was in fact in a position of comparable influence in the insurer

to an officer, whether or not that person held such position, or any

shareholder holding directly or indirectly more than five percent of any class

of any equity security issued by the insurer, or any other person, firm,

corporation, limited liability company, association, or aggregation of persons

with whom the insurer did not deal at arm's length.

c. When the preference is voidable, the liquidator may recover the property or, if it

has been converted, the liquidator may recover its value from any person who

has received or converted the property; except when a bona fide purchaser or

lienor has given less than fair equivalent value, the bona fide purchaser or lienor

shall have a lien upon the property to the extent of the consideration actually

given by the bona fide purchaser or lienor. If a preference by way of lien or

security title is voidable, the court may on due notice order the lien or title to be

preserved for the benefit of the estate, in which event the lien or title shall pass to

the liquidator.

2. a. A transfer of property other than real property must be deemed to be made or

suffered when it becomes so far perfected that no subsequent lien obtainable by

legal or equitable proceedings on a simple contract could become superior to the

rights of the transferee.

b. A transfer of real property must be deemed to be made or suffered when it

becomes so far perfected that no subsequent bona fide purchaser from the

insurer could obtain rights superior to the rights of the transferee.

c. A transfer which creates an equitable lien may not be deemed to be perfected if

there are available means by which a legal lien could be created.

d. A transfer not perfected prior to the filing of a petition for liquidation must be

deemed to be made immediately before the filing of the successful petition.

e. The provisions of this subsection apply whether or not there are or were creditors

who might have obtained liens or persons who might have become bona fide

purchasers.

3. a. A lien obtainable by legal or equitable proceedings upon a simple contract is one

arising in the ordinary course of such proceedings upon the entry or docketing of

a judgment or decree, or upon attachment, garnishment, execution, or like

process, whether before, upon, or after judgment or decree and whether before

or upon levy. It does not include liens which under applicable law are given a

special priority over other liens which are prior in time.

b. A lien obtainable by legal or equitable proceedings could become superior to the

rights of a transferee, or a purchaser could obtain rights superior to the rights of a

transferee within the meaning of subsection 2, if such consequences would follow

only from the lien or purchase itself, or from the lien or purchase followed by any

step wholly within the control of the respective lienholder or purchaser, with or

without the aid of ministerial action by public officials. Such a lien could not,

however, become superior and such a purchase could not create superior rights

for the purpose of subsection 2 through any acts subsequent to the obtaining of

such a lien or subsequent to such a purchase which require the agreement or

concurrence of any third party or which require any further judicial action or ruling.

4. A transfer of property for or on account of a new and contemporaneous consideration,

which is deemed under subsection 2 to be made or suffered after the transfer because

of delay in perfecting it, does not thereby become a transfer for or on account of an

antecedent debt if any acts required by the applicable law to be performed in order to

perfect the transfer as against liens or bona fide purchasers' rights are performed

within twenty-one days or any period expressly allowed by the law, whichever is less. A

transfer to secure a future loan, if such a loan is actually made, or a transfer which

becomes security for a future loan, has the same effect as a transfer for or on account

of a new and contemporaneous consideration.

5. If any lien deemed voidable under subdivision b of subsection 1 has been dissolved by

the furnishing of a bond or other obligation, the surety on which has been indemnified

directly or indirectly by the transfer of or the creation of a lien upon any property of an

insurer before the filing of a petition under this chapter which results in a liquidation

order, the indemnifying transfer or lien must also be deemed voidable.

6. The property affected by any lien deemed voidable under subsections 1 and 5 must be

discharged from the lien, and that property and any of the indemnifying property

transferred to or for the benefit of a surety passes to the liquidator, except that the

court may on due notice order any such lien to be preserved for the benefit of the

estate and the court may direct that such conveyance be executed as may be proper

or adequate to evidence the title of the liquidator.

7. The district court shall have summary jurisdiction of any proceeding by the liquidator to

hear and determine the rights of any parties under this section. Reasonable notice of

any hearing in the proceeding must be given to all parties in interest, including the

obligee of a releasing bond or other like obligation. When an order is entered for the

recovery of indemnifying property in kind or for the avoidance of an indemnifying lien,

the court, upon application of any party in interest, shall in the same proceeding

ascertain the value of the property or lien, and if the value is less than the amount for

which the property is indemnity or less than the amount of the lien, the transferee or

lienholder may elect to retain the property or lien upon payment to the liquidator of its

value, as ascertained by the court, within such reasonable times as the court shall fix.

8. The liability of the surety under a releasing bond or other like obligation must be

discharged to the extent of the value of the indemnifying property recovered or the

indemnifying lien nullified and avoided by the liquidator, or, when the property is

retained under subsection 7, to the extent of the amount paid to the liquidator.

9. If a creditor has been preferred, and afterward in good faith gives the insurer further

credit, without security of any kind, for property which becomes a part of the insurer's

estate, the amount of the new credit remaining unpaid at the time of the petition may

be set off against the preference which would otherwise be recoverable from the

creditor.

10. If an insurer, directly or indirectly, within four months before the filing of a successful

petition for liquidation under this chapter, or at any time in contemplation of a

proceeding to liquidate it, pays money or transfers property to an attorney at law for

services rendered or to be rendered, the transactions may be examined by the court

on its own motion or must be examined by the court on petition of the liquidator and

must be held valid only to the extent of the reasonable amount to be determined by the

court, and the excess may be recovered by the liquidator for the benefits of the estate

provided that when the attorney is in a position of influence in the insurer or an affiliate

thereof, payment of any money or the transfer of any property to the attorney at law for

services rendered or to be rendered must be governed by the provision of paragraph 4

of subdivision b of subsection 1.

11. a. Every officer, manager, employee, shareholder, member, subscriber, attorney, or

any other person acting on behalf of the insurer who knowingly participates in

giving any preference when that person has reasonable cause to believe the

insurer is insolvent or is about to become insolvent at the time of the preference

is personally liable to the liquidator for the amount of the preference. It is

permissible to infer that there is a reasonable cause to believe the insurer is

insolvent or is about to become insolvent if the transfer was made within four

months prior to the date of filing of the successful petition for liquidation.

b. Every person receiving any property from the insurer or the benefit thereof as a

preference voidable under subsection 1 is personally liable therefor and is bound

to account to the liquidator.

c. Nothing in this subsection prejudices any other claim by the liquidator against any

person.
N.D. Cent. Code § 26.1-55-02 — ND Code / Title 26.1 / Chapter 26.1-55 / Section 26.1-55-02
26.1-55-02. Insurer conduct
Status: in_force

26.1-55-02. Insurer conduct

1. Before November 1, 2014, an insurer shall perform a comparison of the insurer's

insureds' in-force life insurance policies and retained asset accounts against a death

master file in order to identify potential matches of the insurer's insureds.

Semiannually, an insurer shall perform a comparison of the insurer's insureds' in-force

life insurance policies and retained asset accounts against the revised death master

file in order to identify the potential matches of the insurer's insureds.

2. For each potential match identified as a result of a death master file or revised death

master file match, within twelve months of the potential match, the insurer shall:

a. Complete a good-faith effort, which the insurer shall document, to confirm the

death of the insured or retained asset accountholder against other available

records and information;

b. Review the insurer's records to determine whether the individual who has died

purchased any other products with the insurer; and

c. Determine whether benefits are due in accordance with the applicable policy or

contract, and if benefits are due in accordance with the applicable policy or

contract the insurer shall:

(1) Use good-faith efforts, which the insurer shall document, to locate the

beneficiary or beneficiaries; and

(2) Provide the appropriate claims forms or instructions to the beneficiary or

beneficiaries to make a claim, including the need to provide an official death

certificate, if applicable under the policy or contract.

3. With respect to group life insurance, for each potential match identified as a result of a

death master file or revised death master file match, the insurer shall confirm the

possible death of an insured if the insurer maintains at least the following information

of those covered under a policy or certificate:

a. The social security number or the name and date of birth;

b. Beneficiary designation information;

c. Coverage eligibility;

d. Benefit amount; and

e. Premium payment status.

4. Every insurer shall implement procedures to account for:

a. Nicknames, initials used in lieu of a first or middle name, use of a middle name,

compound first and middle names, and interchanged first and middle names;

b. Compound last names, maiden or married names, and hyphens, blank spaces,

and apostrophes in last names;

c. Incomplete date of birth data and transposition of the month and date portions of

a date of birth; and

d. Incomplete social security numbers.

5. To the extent permitted by law, for each potential match identified as a result of a death

master file or revised death master file match, the insurer may disclose minimum

necessary personal information about the insured or beneficiary to:

a. A person the insurer reasonably believes may be able to assist the insurer locate

the beneficiary; or

b. A person otherwise entitled to payment of the claims proceeds.

6. An insurer or an insurer's service provider may not charge an insured, accountholder,

or beneficiary for any fees or costs associated with a comparison, search, or

verification conducted pursuant to this section.

7. The benefits from a life insurance policy or a retained asset account, plus any

applicable accrued interest must be first payable to the designated beneficiaries or

owners and if the beneficiaries or owners cannot be found, escheat to the state as

unclaimed property as provided under this chapter.

8. Within twelve months following a potential match identified as a result of a death

master file or revised death master file match, an insurer shall:

a. Notify the state abandoned property office that a life insurance policy beneficiary

or retained asset accountholder has not submitted and completed a claim with

the insurer and that the insurer has complied with subsections 2 and 3 and has

been unable, after good-faith efforts documented by the insurer, to contact the

retained asset accountholder, beneficiary, or beneficiaries and unable to complete

the necessary payment; and

b. Submit any unclaimed life insurance benefits or unclaimed retained asset

accounts, plus any applicable accrued interest, to the state abandoned property

office under chapter 47-30.2.

9. Except as otherwise provided under this chapter, chapter 47-30.2 applies to the

escheatment of unclaimed life insurance benefits or unclaimed retained asset

accounts.
N.D. Cent. Code § 26.1-58-07 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-07
26.1-58-07. Rules
Status: in_force

26.1-58-07. Rules

The commissioner may adopt rules to implement this chapter.
N.D. Cent. Code § 26.1-31.1-08 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-08
26.1-31.1-08. Duties of reinsurers utilizing the services of a reinsurance intermediary-manager
Status: in_force

26.1-31.1-08. Duties of reinsurers utilizing the services of a reinsurance

intermediary-manager.

1. A reinsurer may not engage the services of any person, firm, association, corporation,

or limited liability company to act as a reinsurance intermediary-manager on its behalf

unless such person, firm, association, corporation, or limited liability company is

licensed as required by subsection 2 of section 26.1-31.1-02.

2. The reinsurer shall annually obtain a copy of statements of the financial condition of

each reinsurance intermediary-manager which the reinsurer has engaged, prepared

by an independent certified public accountant, in a form acceptable to the

commissioner.

3. If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall

annually obtain the opinion of an actuary attesting to the adequacy of loss reserves

established for losses incurred and outstanding on business produced by the

reinsurance intermediary-manager. This opinion must be in addition to any other

required loss reserve certification.

4. Binding authority for all retrocessional contracts or participation in reinsurance

syndicates rests with an officer of the reinsurer who may not be affiliated with the

reinsurance intermediary-manager.

5. Within thirty days of termination of a contract with a reinsurance

intermediary-manager, the reinsurer shall provide written notification of its termination

to the commissioner.

6. A reinsurer may not appoint to its board of directors any officer, director, employee,

controlling shareholder, or subproducer of its reinsurance intermediary-manager. This

subsection does not apply to relationships governed by chapter 26.1-10.
N.D. Cent. Code § 26.1-49-03 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-03
26.1-49-03. Powers
Status: in_force

26.1-49-03. Powers

In addition to the powers granted a cooperative under chapter 10-15, a health provider

cooperative has the powers granted a nonprofit corporation under chapter 10-33. The power

granted under chapter 10-15 controls over any inconsistent power granted by chapter 10-33.
N.D. Cent. Code § 26.1-04-08 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-08
26.1-04-08. Rulemaking
Status: in_force

26.1-04-08. Rulemaking

The commissioner may adopt reasonable rules necessary to identify specific methods of

competition and acts or practices prohibited by section 26.1-04-03. The rules may not enlarge

upon nor extend the provisions of section 26.1-04-03.
N.D. Cent. Code § 26.1-26.9-01 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-01
26.1-26.9-01. Definitions
Status: in_force

26.1-26.9-01. Definitions

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

1. "Location" means any physical location in this state or any website, call center site, or

similar location directed to residents of this state.

2. "Occupant" means the person who rents a space at a self-service storage facility

under a rental agreement, or a sublessee, successor, or assignee of the renter.

3. "Owner" means any person who owns, leases, subleases, manages, or operates a

self-service storage facility and receives rent from an occupant under a rental

agreement.

4. "Personal property" means movable property not affixed to land, including

merchandise and household goods.

5. "Rental agreement" means a written agreement between the owner and the occupant

which establishes or modifies the terms and conditions of the occupant's use of a

space at a self-service storage facility.

6. "Self-service storage facility" means any real property used for renting or leasing

individual spaces in which occupants customarily store and remove their personal

property. The term does not include a garage used principally for parking motor

vehicles; any property of a financial institution which contains vaults, safe deposit

boxes, or other receptacles for the purpose and benefit of the financial institution's

customers; or a warehouse where warehouse receipts, bills of lading, or other

documents of title are issued for the personal property stored.

7. "Self-service storage insurance" means personal property insurance offered in

connection with and incidental to the rental of a space at a self-service storage facility

and which provides coverage to occupants at the self-service storage facility where the

insurance is transacted for the loss of or damage to personal property occurring at the

facility or when the property is in transit to or from the facility during the period of the

rental agreement.

8. "Supervising entity" means a person that is a licensed insurer or insurance producer

appointed by an insurer to supervise the administration of a self-service storage

insurance program.
N.D. Cent. Code § 26.1-26-12 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-12
26.1-26-12. License application - Accompanied by fees
Status: repealed

26.1-26-12. License application - Accompanied by fees

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-32-08 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-08
26.1-32-08. Proof of loss - Insurer to furnish blanks - Waiver
Status: in_force

26.1-32-08. Proof of loss - Insurer to furnish blanks - Waiver

When notice of loss is given to the insurer on behalf of the insured or the beneficiary of a life

insurance policy, the insurer, within twenty days after receipt of notice, shall furnish to the

insured or beneficiary, as the case may be, a blank form of proof of loss. In the case of life

insurance, the beneficiary shall have ninety days after receipt of the blank form in which to make

proof of loss. In the case of insurance other than life insurance, the insured shall have sixty days

after the blank form is furnished in which to make proof of loss. If the insurer fails to furnish a

blank form of proof of loss within the required time, the insurer has waived the requirement of

proof of loss. Any agreement made to waive the provisions of this section is void.
N.D. Cent. Code § 26.1-36.12-10 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-10
26.1-36.12-10. Length of prior authorization
Status: in_force

26.1-36.12-10. Length of prior authorization

A prior authorization is valid for at least six months after the date the health care provider

receives the prior authorization.
N.D. Cent. Code § 26.1-10-08 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-08
26.1-10-08. Injunctions - Prohibitions against voting securities - Sequestration of voting securities
Status: in_force

26.1-10-08. Injunctions - Prohibitions against voting securities - Sequestration of

voting securities.

1. Whenever it appears to the commissioner that any insurer or any director, officer,

employee, or agent thereof has committed or is about to commit a violation of this

chapter or of any rule or order issued by the commissioner under this chapter, the

commissioner may apply to the district court for the county in which the principal office

of the insurer is located or if the insurer has no principal office in this state then to the

district court of Burleigh County for an order enjoining the insurer or the director,

officer, employee, or agent thereof from violating or continuing to violate this chapter or

any rule or order, and for any other equitable relief as the nature of the case and the

interests of the insurer's policyholders, creditors, and shareholders or the public may

require.

2. A security which is the subject of any agreement or arrangement regarding acquisition,

or which is acquired or to be acquired, in contravention of this chapter or any rule or

order issued by the commissioner hereunder may not be voted at any shareholders'

meeting or counted for quorum purposes, and any action of shareholders requiring the

affirmative vote of a percentage of shares may be taken as though the securities were

not issued and outstanding, but any action taken at the meeting is not invalidated by

the voting of those securities, unless the action would materially affect control of the

insurer or unless the courts of this state have so ordered. If an insurer or the

commissioner has reason to believe that any security of the insurer has been or is

about to be acquired in contravention of this chapter or any rule or order issued by the

commissioner hereunder, the insurer or the commissioner may apply to the district

court of Burleigh County or to the district court of the county in which the insurer has

its principal place of business to enjoin any offer, request, invitation, agreement, or

acquisition made in contravention of section 26.1-10-03 or any rule or order issued by

the commissioner thereunder to enjoin the voting of any security so acquired, to void

any vote of the security already cast at any meeting of shareholders, and for any other

equitable relief as the nature of the case and the interests of the insurer's

policyholders, creditors, and shareholders or the public may require.

3. When a person has acquired or is proposing to acquire any voting securities in

violation of this chapter or any rule or order issued by the commissioner hereunder, the

district court of Burleigh County or the district court of the county in which the insurer

has its principal place of business may, on the notice the court deems appropriate and

upon the application of the insurer or the commissioner, seize or sequester any voting

securities of the insurer owned directly or indirectly by the person and issue any orders

with respect as may be appropriate to effectuate this chapter.

4. Notwithstanding any other provision of law, for the purpose of this chapter the site of

the ownership of the securities of domestic insurers is deemed to be in this state.
N.D. Cent. Code § 26.1-04-18 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-18
26.1-04-18. Order does not relieve from other liability
Status: in_force

26.1-04-18. Order does not relieve from other liability

An order of the commissioner under this chapter or order of a court affirming the

commissioner's order does not relieve or absolve any person affected by the order from any

liability under any other law of this state.
N.D. Cent. Code § 26.1-33-06 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-06
26.1-33-06. Provisions prohibited in life policy
Status: in_force

26.1-33-06. Provisions prohibited in life policy

No life insurance policy may be issued or delivered in this state if it contains any of the

following:

1. A provision for forfeiture of the policy for failure to repay any loan on the policy, or to

pay interest on such loan, while the total indebtedness on the policy is less than the

loan value thereof; or any provision for forfeiture for failure to repay any such loan or to

pay interest on the loan unless the provision contains a stipulation that no forfeiture

occurs until at least one month after notice has been mailed by the company to the

last-known address of the insured and of the assignee, if any.

2. A provision limiting the time within which any action may be commenced to less than

five years after the claim for relief accrues.

3. A provision by which the policy purports to be issued or take effect more than six

months before the original application for the insurance was made. This subsection

does not prohibit the exchange, alteration, or conversion of any policy of life insurance.

4. A provision for any mode of settlement at maturity of less value than the amount

insured on the face of the policy plus dividend additions, if any, less any indebtedness

to the company on the policy and less any premium that by the terms of the policy may

be deducted.
N.D. Cent. Code § 26.1-36.12-15 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-15
26.1-36.12-15. Effect of change in prior authorization clinical criteria
Status: in_force

26.1-36.12-15. Effect of change in prior authorization clinical criteria

1. If, during a plan year, a prior authorization review organization changes coverage

terms for a health care service or the clinical criteria used to conduct prior

authorizations for a health care service, the change in coverage terms or in clinical

criteria does not apply until the next plan year for any enrollee who received prior

authorization for a health care service using the coverage terms or clinical criteria in

effect before the effective date of the change.

2. This section does not apply if a prior authorization review organization changes

coverage terms for a drug or device that has been:

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

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

manufacturer.
N.D. Cent. Code § 26.1-12-13 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-13
26.1-12-13. Applicability of general insurance laws to mutual companies
Status: in_force

26.1-12-13. Applicability of general insurance laws to mutual companies

In all respects not specifically provided for in this chapter, mutual insurance companies

organized under this chapter are subject to the provisions of this title relating to insurance

companies generally.
N.D. Cent. Code § 26.1-18.1-12 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-12
26.1-18.1-12. Protection against insolvency
Status: in_force

26.1-18.1-12. Protection against insolvency

1. Net worth requirements.

a. Before issuing any certificate of authority, the commissioner shall require that the

health maintenance organization have an initial net worth of one million dollars

and shall thereafter maintain the minimum net worth required under subdivision b.

b. Except as provided in subdivisions c and d, every health maintenance

organization must maintain a minimum net worth equal to the greater of:

(1) One million dollars;

(2) Two percent of annual premium revenues as reported on the most recent

annual financial statement filed with the commissioner on the first one

hundred fifty million dollars of premium and one percent of annual premium

on the premium in excess of one hundred fifty million dollars;

(3) An amount equal to the sum of three months uncovered health care

expenditures as reported on the most recent financial statement filed with

the commissioner; or

(4) An amount equal to the sum of:

(a) Eight percent of annual health care expenditures except those paid on

a capitated basis or managed hospital payment basis as reported on

the most recent financial statement filed with the commissioner; and

(b) Four percent of annual hospital expenditures paid on a managed

hospital payment basis as reported on the most recent financial

statement filed with the commissioner.

c. A health maintenance organization licensed before August 1, 1993, and licensed

only in this state must maintain the minimum requirements which are in effect at

the time this chapter became law.

d. (1) In determining net worth, no debt may be considered fully subordinated

unless the subordination clause is in a form acceptable to the commissioner.

Any interest obligation relating to the repayment of any subordinated debt

must be similarly subordinated.

(2) The interest expenses relating to the repayment of any fully subordinated

debt must be considered covered expenses.

(3) Any debt incurred by a note meeting the requirements of this section, and

otherwise acceptable to the commissioner, may not be considered a liability

and must be recorded as equity.

2. Deposit requirements.

a. Unless otherwise provided below, each health maintenance organization shall

deposit with the commissioner or, at the discretion of the commissioner, with any

organization or trustee acceptable to the commissioner through which a custodial

or controlled account is utilized, cash, securities, or any combination of these or

other measures that are acceptable to the commissioner which at all times shall

have a value of not less than three hundred thousand dollars.

b. A health maintenance organization that is licensed only in this state and is in

operation on August 1, 1993, shall make a deposit equal to one hundred

thousand dollars.

c. The deposit shall be an admitted asset of the health maintenance organization in

the determination of net worth.

d. All income from deposits is an asset of the organization. A health maintenance

organization that has made a securities deposit may withdraw that deposit or any

part thereof after making a substitute deposit of cash, securities, or any

combination of these or other measures of equal amount and value. Any

securities must be approved by the commissioner before being deposited or

substituted.

e. The deposit must be used to protect the interests of the health maintenance

organization's enrollees and to assure continuation of health care services to

enrollees of a health maintenance organization that is in rehabilitation or

conservation. The commissioner may use the deposit for administrative costs

directly attributable to a receivership or liquidation. If the health maintenance

organization is placed in receivership or liquidation, the deposit is an asset

subject to the provisions of the liquidation act.

f. The commissioner may reduce or eliminate the deposit requirement if the health

maintenance organization deposits with the state treasurer, insurance

commissioner, or other official body of the state or jurisdiction of domicile for the

protection of all subscribers and enrollees, wherever located, of the health

maintenance organization, cash, acceptable securities or surety, and delivers to

the commissioner a certificate to the effect, duly authenticated by the appropriate

state official holding the deposit.

3. Liabilities. Every health maintenance organization shall, when determining liabilities,

include an amount estimated in the aggregate to provide for any unearned premium

and for the payment of all claims for health care expenditures which have been

incurred, whether reported or unreported, which are unpaid and for which the

organization is or may be liable, and to provide for the expense of adjustment or

settlement of the claims. The liabilities must be computed in accordance with rules

adopted by the commissioner upon reasonable consideration of the ascertained

experience and character of the health maintenance organization.

4. Hold harmless.

a. Every contract between a health maintenance organization and a participating

provider of health care services must be in writing and must set forth that in the

event the health maintenance organization fails to pay for health care services as

set forth in the contract, the subscriber or enrollee is not liable to the provider for

any sums owed by the health maintenance organization.

b. In the event that the participating provider contract has not been reduced to

writing as required by this subsection or that the contract fails to contain the

required prohibition, the participating provider may not collect or attempt to collect

from the subscriber or enrollee sums owed by the health maintenance

organization.

c. No participating provider, or agent, trustee, or assignee thereof, may maintain any

action at law against a subscriber or enrollee to collect sums owed by the health

maintenance organization.

5. Continuation of benefits. The commissioner shall require that each health maintenance

organization have a plan for handling insolvency which allows for continuation of

benefits for the duration of the contract period for which premiums have been paid and

continuation of benefits to members who are confined on the date of insolvency in an

inpatient facility until their discharge or expiration of benefits. In considering a plan, the

commissioner may require:

a. Insurance to cover the expenses to be paid for continued benefits after an

insolvency.

b. Provisions in provider contracts that obligate the provider to provide services for

the duration of the period after the health maintenance organization's insolvency

for which premium payment has been made and until the enrollee's discharge

from inpatient facilities.

c. Insolvency reserves.

d. Acceptable letters of credit.

e. Any other arrangements to assure that benefits are continued as specified above.

6. Notice of termination. An agreement to provide health care services between a

provider and a health maintenance organization must require that if the provider

terminates the agreement, the provider shall give the organization at least sixty days'

advance notice of termination.
N.D. Cent. Code § 26.1-26-13.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-13.1
26.1-26-13.1. Appointments
Status: in_force

26.1-26-13.1. Appointments

1. An insurance producer may not act as an agent of an insurer unless the insurance

producer becomes an appointed agent of that insurer. An insurance producer who is

not acting as an agent of an insurer is not required to become appointed.

2. To appoint an insurance producer as its agent, the appointing insurer shall file a notice

of appointment within thirty days from the later of the date the agency contract is

executed or the first insurance application is submitted. The notice must be in a format

approved by the insurance commissioner. An insurer may also appoint an insurance

producer to all or some insurers within the insurer's holding company system or group

by the filing of a single appointment request.

3. An insurer shall pay an appointment fee for each insurance producer appointed by the

insurer in the amount and method of payment set forth in section 26.1-01-07.

4. An insurer shall remit, in a manner prescribed by the commissioner, a renewal

appointment fee in the amount set forth in section 26.1-01-07.
N.D. Cent. Code § 26.1-05-07.1 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-07.1
26.1-05-07.1. Approval of the domestic insurer - Premium waiver
Status: in_force

26.1-05-07.1. Approval of the domestic insurer - Premium waiver

1. An insurer organized under the laws of another state which is admitted to do business

in this state for the purpose of writing insurance may be a domestic insurer by

complying with the requirements of law relative to the organization and licensing of a

domestic insurer of the same type in this state and by designating its principal place of

business at a place in this state. For purposes of this section, a company is deemed to

have designated its principal place of business at a place in this state if the company

locates its home office in this state. If an insurer seeks to become a domestic insurer

but is unable to designate its principal place of business in this state, the insurer may

place on deposit with the Bank of North Dakota, upon the approval of the

commissioner, a sum established by the commissioner, which may not be withdrawn

without the approval of the commissioner. An insurer that complies with this subsection

is entitled to the certificates and licenses to transact the business of a domestic insurer

in this state and is subject to the authority and jurisdiction of this state.

2. After an insurance company has redomesticated to this state and located and

maintained its home office in this state, the insurance company is allowed a credit

against the premium tax imposed and due under section 26.1-03-17 for an amount

equal to the premium tax paid in this state during the first two years as a domestic

company in this state. This credit must be used in the third and fourth years following

the company's redomestication to this state and may not be carried over beyond the

fourth year.
N.D. Cent. Code § 26.1-02.1-07 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-07
26.1-02.1-07. Confidentiality
Status: in_force

26.1-02.1-07. Confidentiality

1. Any documents, materials, or other information in the possession or control of the

commissioner which are provided pursuant to section 26.1-02.1-06 or obtained by the

commissioner in an investigation of suspected or actual fraudulent insurance acts are

confidential by law and privileged, not subject to subpoena, and not subject to

discovery or admissible in evidence in any private civil action. However, the

commissioner is authorized to use the documents, materials, or other information in

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

commissioner's official duties.

2. Neither the commissioner nor any person who received documents, materials, or other

information while acting under the authority of the commissioner may be permitted or

required to testify in any private civil action concerning any confidential documents,

materials, or information subject to subsection 1.

3. In order to assist in the performance of the commissioner's duties, the commissioner

may:

a. Share documents, materials, or other information, including the confidential and

privileged documents, materials, or information subject to subsection 1 with other

state, federal, and international regulatory agencies, with the national association

of insurance commissioners and its affiliates and subsidiaries, and with local,

state, federal, and international law enforcement authorities, provided that the

recipient agrees to maintain the confidentiality and privileged status of the

document, material, or other information;

b. Receive documents, materials, or information, including otherwise confidential

and privileged documents, materials, or information from the national association

of insurance commissioners and its affiliates and subsidiaries and from regulatory

and law enforcement officials of other foreign or domestic jurisdictions, and shall

maintain as confidential or privileged any document, material, or information

received with notice or the understanding that it is confidential or privileged under

the laws of the jurisdiction that is the source of the document, material, or

information; and

c. Enter into agreements governing sharing and use of information consistent with

this subsection.

4. A privilege or claim of confidentiality in the documents, materials, or information is not

waived as a result of disclosure to the commissioner under this section or as a result

of sharing as authorized in subsection 3.

5. Any investigative information gathered under section 26.1-02.1-06 or 26.1-02.1-08 is

criminal investigative information and may not be disclosed except as provided under

section 44-04-18.7.
N.D. Cent. Code § 26.1-26.3-04 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-04
26.1-26.3-04. Duties of insurers
Status: in_force

26.1-26.3-04. Duties of insurers

1. The insurer shall have on file, in a form acceptable to the commissioner, an

independent financial examination of each managing general agent with which it has

done business.

2. If a managing general agent establishes loss reserves, the insurer shall annually

obtain the opinion of an actuary attesting to the adequacy of loss reserves established

for losses incurred and outstanding on business produced by the managing general

agent. This is in addition to any other required loss reserve certification.

3. The insurer shall periodically and at least semiannually conduct an onsite review of the

underwriting and claims processing operations of the managing general agent.

4. Binding authority for all reinsurance contracts or participation in insurance or

reinsurance syndicates rests with an officer of the insurer, who may not be affiliated

with the managing general agent.

5. Within thirty days of entering into or termination of a contract with a managing general

agent, the insurer shall provide written notification of the appointment or termination to

the commissioner. Notices of appointment of a managing general agent must include a

statement of duties which the applicant is expected to perform on behalf of the insurer,

the lines of insurance for which the applicant is to be authorized to act, and any other

information the commissioner may request.

6. An insurer shall review its books and records each quarter to determine if any of its

insurance producers have become, by operation of subsection 3 of section

26.1-26.3-01, a managing general agent as defined in that section. If the insurer

determines that an insurance producer has become a managing general agent

pursuant to the above, the insurer shall promptly notify the insurance producer and the

commissioner of the determination and the insurer and insurance producer shall fully

comply with the provisions of this chapter within thirty days.

7. An insurer may not appoint to its board of directors an officer, director, employee,

subagent, or controlling shareholder of its managing general agents. This subsection

does not apply to relationships governed by chapter 26.1-10.
N.D. Cent. Code § 26.1-10-10 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-10
26.1-10-10. Receivership
Status: in_force

26.1-10-10. Receivership

Whenever it appears to the commissioner that any person has committed a violation of this

chapter which so impairs the financial condition of a domestic insurer as to threaten insolvency

or make the further transaction of business by it hazardous to its policyholders, creditors,

shareholders, or the public, then the commissioner may proceed as provided in chapter

26.1-06.1 to take possession of the property of the insurer and to carry on its business.
N.D. Cent. Code § 26.1-03-18 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-18
26.1-03-18. Insurance or surety company to file statement of business done before authorization and to pay tax
Status: in_force

26.1-03-18. Insurance or surety company to file statement of business done before

authorization and to pay tax.

Before a surety company or an insurance company, other than a life insurance company,

may be authorized to transact business in this state, the commissioner may require it to file with

the commissioner a sworn statement and other proof that it has not written, or caused to be

written, any surety bond or insurance contract on any person, firm, or corporation, or on

property in this state, at any time prior to filing its application for a certificate of authority to do

business in this state. If it appears that the company has written, or caused to be written, any

such surety bond or insurance contract while it was not authorized to do business in this state, it

shall file a statement of all such bonds and contracts written by it, and the company shall pay

the premium tax due thereon before a certificate of authority is issued to it.
N.D. Cent. Code § 26.1-26.4-03 — ND Code / Title 26.1 / Chapter 26.1-26.4 / Section 26.1-26.4-03
26.1-26.4-03. Certification
Status: in_force

26.1-26.4-03. Certification

A utilization review agent may not conduct utilization review in this state unless the

utilization review agent has certified to the commissioner in writing that the agent is in

compliance with section 26.1-26.4-04. Certification must be made annually on or before March

first of each calendar year. In addition, a utilization review agent must file the following

information:

1. The name, address, telephone number, and normal business hours of the utilization

review agent.

2. The name and telephone number of a person for the commissioner to contact.

3. A description of the appeal procedures for utilization review determinations.

4. A list of the third-party payers for whom the private review agent is performing

utilization review in the state.

A provider may request that a utilization review agent furnish the provider with the medical

review criteria to be used in evaluating proposed or delivered health care services. Any material

changes in the information filed in accordance with this section must be filed with the

commissioner within thirty days of the change.
N.D. Cent. Code § 26.1-47-02 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-02
26.1-47-02. Preferred provider arrangements
Status: in_force

26.1-47-02. Preferred provider arrangements

Notwithstanding any provision of law to the contrary, any health care insurer may enter into

preferred provider arrangements.

1. Preferred provider arrangements must:

a. Establish the amount and manner of payment to the preferred provider. The

amount and manner of payment may include capitation payments for preferred

providers.

b. Include mechanisms, subject to the minimum standards imposed by chapter

26.1-26.4, which are designed to review and control the utilization of health care

services and establish a procedure for determining whether health care services

rendered are medically necessary.

c. Include mechanisms which are designed to preserve the quality of health care.

d. With regard to an arrangement in which the preferred provider is placed at risk for

the cost or utilization of health care services, specifically include a description of

the preferred provider's responsibilities with respect to the health care insurer's

applicable administrative policies and programs, including utilization review,

quality assessment and improvement programs, credentialing, grievance

procedures, and data reporting requirements. Any administrative responsibilities

or costs not specifically described or allocated in the contract establishing the

arrangement as the responsibility of the preferred provider are the responsibility

of the health care insurer.

e. Provide that in the event the health care insurer fails to pay for health care

services as set forth in the contract, the covered person is not liable to the

provider for any sums owed by the health care insurer.

f. Provide that in the event of the health care insurer insolvency, services for a

covered person continue for the period for which premium payment has been

made and until the covered person's discharge from inpatient facilities.

g. Provide that either party terminating the contract without cause provide the other

party at least sixty days' advance written notice of the termination.

2. Preferred provider arrangements may not unfairly deny health benefits to persons for

covered medically necessary services.

3. Preferred provider arrangements may not restrict a health care provider from entering

into preferred provider arrangements or other arrangements with other health care

insurers.

4. A health care insurer must file all its preferred provider arrangements with the

commissioner within ten days of implementing the arrangements. If the preferred

provider arrangement does not meet the requirements of this chapter, the

commissioner may declare the contract void and disapprove the preferred provider

arrangement in accordance with the procedure for policies set out in chapter 26.1-30.

5. A preferred provider arrangement may not offer an inducement to a preferred provider

to provide less than medically necessary services to a covered person. This

subsection does not prohibit a preferred provider arrangement from including

capitation payments or shared-risk arrangements authorized under subdivision a of

subsection 1 which are not tied to specific medical decisions with respect to a patient.

6. A health care insurer may not penalize a provider because the provider, in good faith,

reports to state or federal authorities any act or practice by the health care insurer

which jeopardizes patient health or welfare.
N.D. Cent. Code § 26.1-40.2-04 — ND Code / Title 26.1 / Chapter 26.1-40.2 / Section 26.1-40.2-04
26.1-40.2-04. Exclusions in motor vehicle liability insurance policies
Status: in_force

26.1-40.2-04. Exclusions in motor vehicle liability insurance policies

1. An authorized insurer that writes motor vehicle liability insurance in the state may

exclude any and all coverage and the duty to defend or indemnify for any injury or loss

occurring during the delivery available period and the delivery service period,

including:

a. Liability coverage for bodily injury and property damage;

b. Personal injury protection coverage under chapter 26.1-41;

c. Uninsured and underinsured motorist coverage;

d. Medical payments coverage;

e. Comprehensive physical damage coverage; and

f. Collision physical damage coverage.

2. This chapter does not:

a. Invalidate or limit an exclusion contained in a motor vehicle liability insurance

policy, including any insurance policy in use or approved for use which excludes

coverage for motor vehicles used for delivery or for any business use.

b. Invalidate, limit, or restrict an insurer's ability to underwrite any insurance policy.

c. Invalidate, limit, or restrict an insurer's ability to cancel and nonrenew policies.

3. A motor vehicle liability insurer that defends or indemnifies a claim against a delivery

network driver who is excluded under the terms of the insurer's policy may seek

recovery against the insurer providing coverage under subsections 1 and 2 of section

26.1-40.2-03 if the claim:

a. Occurs during the delivery available period or the delivery service period; and

b. Is excluded under the terms of its policy.
N.D. Cent. Code § 26.1-33-40 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-40
26.1-33-40. Avails of life policy payable to deceased or to the deceased's heirs, personal representatives, or estate - Exemption - Distribution
Status: in_force

26.1-33-40. Avails of life policy payable to deceased or to the deceased's heirs,

personal representatives, or estate - Exemption - Distribution.

The avails of a life insurance policy or of a contract payable by any mutual aid or benevolent

society, when made payable to the deceased, to the personal representatives of the deceased,

to the deceased's heirs, or to the deceased's estate, is not subject to the debts of the decedent

upon the death of the insured or member of the society except by special contract. The avails

must be inventoried as a part of the estate of the decedent and must be considered as part of

the general assets of the estate. The insured may transfer the avails of the life insurance policy

or contract either by will or by contract. Nothing contained in this section affects, in any manner,

any life insurance policy or beneficiary certificate which is made payable to a designated

person, including the spouse of the insured, or to persons or to members of a family designated

as a class, such as "all children" or "all brothers and sisters", even though the members of the

class are not designated by name; or permits any insured to dispose of the avails of a contract

by a mutual or fraternal society by will to anyone who could not be a beneficiary in the contract

under the charter or bylaws of the society.
N.D. Cent. Code § 26.1-33-02 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-02
26.1-33-02. Solicitation of life insurance regulated by rule of the commissioner
Status: in_force

26.1-33-02. Solicitation of life insurance regulated by rule of the commissioner

Insurers shall deliver to purchasers of life insurance information which will improve the

purchaser's ability to select the most appropriate plan of life insurance for the purchaser's

needs, which will improve the purchaser's understanding of the basic features of the policy

which has been purchased or which is under consideration, and which will improve the ability of

the purchaser to evaluate the relative costs of similar plans of life insurance. The commissioner

may adopt reasonable rules to implement this section.
N.D. Cent. Code § 26.1-26.5-02 — ND Code / Title 26.1 / Chapter 26.1-26.5 / Section 26.1-26.5-02
26.1-26.5-02. Applicability
Status: in_force

26.1-26.5-02. Applicability

This chapter applies to licensed insurers as defined in section 26.1-26.5-01, either domiciled

in this state or domiciled in a state that is not an accredited state having in effect a substantially

similar law. All provisions of the Insurance Holding Company Act, to the extent they are not

superseded by this chapter, continue to apply to all parties within holding company systems

subject to this chapter.
N.D. Cent. Code § 26.1-25-19 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-19
26.1-25-19. Exemptions
Status: in_force

26.1-25-19. Exemptions

The commissioner may, by rule, exempt any market from any or all of the provisions of this

chapter, if and to the extent that the exemption is necessary to achieve the purposes of this

chapter.
N.D. Cent. Code § 26.1-09-12 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-12
26.1-09-12. Certificate of authority - Issuance - Renewal - Suspension and revocation
Status: in_force

26.1-09-12. Certificate of authority - Issuance - Renewal - Suspension and revocation

Upon compliance with this chapter and the payment of the required fees and taxes, the

commissioner shall issue a certificate of authority to the attorney in the name and title

mentioned in section 26.1-09-04, to expire on the succeeding April thirtieth. The commissioner

may suspend or revoke any certificate in case of a breach of any of the conditions imposed by

the chapter after a reasonable notice in writing has been given to the attorney to appear and

show cause why the action should not be taken. Any attorney who procures a certificate under

this chapter may have the certificate renewed annually thereafter at the time provided for the

issuance of renewal certificates to insurance companies. A certificate continues in force and

effect until a new certificate is issued or is specifically refused.
N.D. Cent. Code § 26.1-38.1-04 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-04
26.1-38.1-04. Board of directors
Status: in_force

26.1-38.1-04. Board of directors

1. The board of directors of the association shall consist of not less than five nor more

than nine member insurers serving terms as established in the plan of operation. The

insurer members of the board must be selected by member insurers, subject to the

approval of the commissioner. Vacancies on the board must be filled for the remaining

period of the term by a majority vote of the remaining board members, for member

insurers, subject to the approval of the commissioner. To select the initial board of

directors, and initially organize the association, the commissioner shall give notice to

all member insurers of the time and place of the organizational meeting. In determining

voting rights of the organizational meeting, each member insurer is entitled to one vote

in person or by proxy. If the board of directors is not selected within sixty days after

notice of the organizational meeting, the commissioner may appoint the initial

members.

2. In approving selections or in appointing members to the board, the commissioner shall

consider, among other things, whether all member insurers are fairly represented.

3. Members of the board may be reimbursed from the assets of the association for

expenses incurred by them as members of the board of directors but members of the

board may not otherwise be compensated by the association for their services.
N.D. Cent. Code § 26.1-41-13 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-13
26.1-41-13. Priority of applicable security - Coordination of benefits
Status: in_force

26.1-41-13. Priority of applicable security - Coordination of benefits

1. A basic no-fault insurer has the primary obligation to make payment for economic loss

because of accidental bodily injury arising out of the operation of a motor vehicle;

provided, that the amount of all benefits a claimant recovered or is entitled to recover

for the same elements of loss under any workforce safety and insurance law must be

subtracted from the basic no-fault benefits otherwise payable for the injury.

2. As between applicable security basic no-fault benefits are payable as follows:

a. As to any person injured while occupying a secured motor vehicle, or injured as a

pedestrian by a secured motor vehicle, the basic no-fault insurer of the secured

motor vehicle shall pay the benefits.

b. As to any person who is injured while occupying an unsecured motor vehicle, or

while being struck as a pedestrian by an unsecured motor vehicle, the basic

no-fault insurer affording the benefits to the injured person shall pay the benefits.

c. As to any person injured while occupying a bus that is a secured motor vehicle,

the basic no-fault insurer affording benefits to the injured person as the owner of

a secured motor vehicle or as a relative of the owner of a secured motor vehicle

shall pay the benefits; and, if there is no basic no-fault insurer affording benefits

to the injured person, then the basic no-fault insurer of the bus shall pay the

benefits.

d. As to any person injured while occupying a secured motor vehicle that is

transporting persons under a ridesharing arrangement, as defined in section

8-02-07, the basic no-fault insurer affording benefits to the injured person as the

owner of a secured motor vehicle or as a relative of the owner of a secured motor

vehicle shall pay the benefits; and, if there is no basic no-fault insurer affording

benefits to the injured person, then the basic no-fault insurer of the secured motor

vehicle shall pay the benefits.

3. An insurer, health maintenance organization, or nonprofit health service corporation,

other than a basic no-fault insurer, authorized to do business in this state may

coordinate any benefits it is obligated to pay for economic loss incurred as a result of

accidental bodily injury, with the first ten thousand dollars of basic no-fault benefits. A

basic no-fault insurer authorized to do business in this state may coordinate any

benefits it is obligated to pay for medical expenses incurred as a result of accidental

bodily injury in excess of ten thousand dollars. An insurer, health maintenance

organization, or nonprofit health service corporation, other than a basic no-fault

insurer, may not coordinate benefits unless it provides those persons who purchase

benefits from it with an equitable reduction or savings in the direct or indirect cost of

purchased benefits. The commissioner shall approve any coordination of benefits plan.
N.D. Cent. Code § 26.1-53.1-20 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-20
26.1-53.1-20. Required disclosures
Status: in_force

26.1-53.1-20. Required disclosures

1. A discount plan organization or marketer shall disclose clearly and conspicuously in

writing to any prospective member and on any advertisements, marketing materials, or

brochures relating to a discount plan:

a. The plan is a discount plan and is not insurance coverage;

b. The range of discounts for medical or ancillary services provided under the plan

will vary depending on the type of provider and medical or ancillary service

received;

c. Unless the discount plan organization has an active certificate of authority to act

as a third-party administrator as described in subsection 6 of section

26.1-53.1-19, that the plan does not make payments to providers for the medical

or ancillary services received under the discount plan;

d. The plan member is obligated to pay for all medical or ancillary services, but will

receive a discount from those providers that have contracted with the discount

plan organization; and

e. The toll-free telephone number and internet website address for the registered

discount plan organization for prospective members and members to obtain

additional information about and assistance on the discount plan and up-to-date

lists of providers participating in the discount plan.

2. If the initial contact with a prospective member is by telephone, the disclosures

required under subsection 1 must be made orally and be included in the initial written

materials that describe the benefits under the discount plan provided to the

prospective or new member.

3. In addition to the disclosures required under subsection 1, each discount plan

organization or marketer shall provide to each prospective member, at the time of

enrollment, information that describes the terms and conditions of the discount plan,

including any limitations or restrictions on the refund of any processing fees or periodic

charges associated with the discount plan.
N.D. Cent. Code § 26.1-26-15 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-15
26.1-26-15. License requirement - Character
Status: in_force

26.1-26-15. License requirement - Character

An applicant for any license under this chapter must be deemed by the commissioner to be

competent, trustworthy, financially responsible, and of good personal and business reputation. If

the commissioner does not deem an applicant to be competent, trustworthy, financially

responsible, of good personal reputation, or of good business reputation, the commissioner may

deny the application for licensure.
N.D. Cent. Code § 26.1-29-11 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-11
26.1-29-11. What may be insured against
Status: in_force

26.1-29-11. What may be insured against

Any contingent or unknown event, whether past or future, which may damnify a person

having an insurable interest or create a liability against the person may be insured against,

subject to this title, with the exception of an insurance for or against the drawing of any lottery or

for or against any chance or ticket in a lottery drawing a prize.
N.D. Cent. Code § 26.1-32-06 — ND Code / Title 26.1 / Chapter 26.1-32 / Section 26.1-32-06
26.1-32-06. Proof or notice of loss - Requirements
Status: in_force

26.1-32-06. Proof or notice of loss - Requirements

When preliminary proof of loss is required by an insurance policy, the insured is not bound

to give such proof as would be necessary in a court, but it is sufficient for the insured to give the

best evidence which the insured has at the time.
N.D. Cent. Code § 26.1-26-31.6 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.6
26.1-26-31.6. Credit for teaching
Status: in_force

26.1-26-31.6. Credit for teaching

Any person teaching or lecturing at any approved continuing education course, seminar, or

program qualifies for the same number of hours granted to a person enrolled in the approved

course, seminar, or program.
N.D. Cent. Code § 26.1-39.2-03 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-03
26.1-39.2-03. Prohibited acts
Status: in_force

26.1-39.2-03. Prohibited acts

A residential contractor may not promise to rebate a portion of an insurance deductible as

an inducement to the sale of goods or services. A promise to rebate a portion of an insurance

deductible includes granting an allowance or offering a discount against the fees to be charged

or paying an insured or a person associated with the residential real estate a form of

compensation, except for an item of nominal value.
N.D. Cent. Code § 26.1-06-08 — ND Code / Title 26.1 / Chapter 26.1-06 / Section 26.1-06-08
26.1-06-08. Civil liabilities
Status: in_force

26.1-06-08. Civil liabilities

1. Any offeror who makes a takeover bid which does not comply with this chapter, or

makes a takeover bid by means of an untrue statement of a material fact or any

omission to state a material fact necessary in order to make the statement made, in

the light of the circumstances under which they were made, not misleading (the offeree

not knowing of such untruth or omission), and who does not sustain the burden of

proof that the offeror did not know, and in the exercise of reasonable care could not

have known, of the untruth or omission, is liable to any offeree whose shares are taken

up pursuant to the takeover bid who may sue to recover the shares, together with all

dividends received thereon, costs, and reasonable attorney's fees, upon the tender of

the consideration received from the offeror, or may sue for the substantial equivalent in

damages if the offeror no longer owns the shares.

2. Every person who materially participates or aids in a takeover bid made by an offeror

liable under subsection 1, or who directly or indirectly controls any offeror so liable, is

also liable jointly and severally with and to the same extent as the offeror so liable,

unless the person who so participates, aids, or controls, sustains the burden of proof

that the person did not know, and in the exercise of reasonable care could not have

known, of the existence of facts by reason of which the liability is alleged to exist. The

contribution is as in cases of contract among the several persons so liable.

3. Any tender specified in this section may be made at any time before entry of judgment.

4. No suit may be maintained to enforce any liability created under this section unless

brought within two years after the transaction upon which it is based; provided, that if

any person liable by reason of subsections 1 and 3 makes a written offer, before suit is

brought, to return the shares taken up pursuant to the takeover bid, together with all

dividends received thereon, upon the tender of the consideration received from the

offeror, or to pay damages if the offeror no longer owns the shares, no offeree may

maintain a suit under this section who has refused or failed to accept the offer within

thirty days of its receipt.

5. Any condition, stipulation, or provision binding any offeree to waive compliance with

this chapter or of any rule or order pursuant to this chapter is void.

6. The rights and remedies provided by this chapter are in addition to any and all other

rights and remedies that may exist at law or in equity.
N.D. Cent. Code § 26.1-05-19 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-19
26.1-05-19. Authorized investment of funds of insurance companies
Status: in_force

26.1-05-19. Authorized investment of funds of insurance companies

A domestic insurance company may invest any of its funds and accumulations in:

1. Securities or obligations made specifically eligible for such investment by law.

2. Bonds or other evidences of indebtedness issued, assumed, or guaranteed by the

United States, the District of Columbia, or by any state, territory, or insular possession

of the United States or by any county, city, township, school district, or other civil

division of a state, including loan-backed securities, those payable from special

revenues or earnings specifically pledged for the payment thereof, and those payable

from special assessments, including rights to purchase or sell these securities or

obligations if these rights are traded upon a contract market designated and regulated

by a federal agency and purchased for legitimate hedging, nonspeculative purposes.

3. Bonds or other evidences of indebtedness issued, assumed, or guaranteed by any

instrumentality or agency of the United States, including rights to purchase or sell

these securities or obligations if these rights are traded upon a contract market

designated and regulated by a federal agency and purchased for legitimate hedging,

nonspeculative purposes.

4. Notes or bonds secured by mortgage or deed of trust insured by the federal housing

administrator, debentures issued by the federal housing administrator, and securities

issued by national mortgage associations.

5. Bonds guaranteed under former chapter 6-09.2.

6. Bonds issued by the public finance authority pursuant to chapter 6-09.4.

7. Bonds issued by the state board of higher education under chapter 15-55.

8. Revenue bonds issued by the state water commission.

9. Interim financing notes issued by the state water commission pursuant to chapter

61-02.

10. Warrants issued by a city under chapter 40-24.

11. Bonds or notes issued pursuant to chapter 40-33.2.

12. Bonds or other obligations issued pursuant to chapter 40-58.

13. Bonds issued under chapter 40-61.

14. Bonds issued under chapter 54-30.

15. Notes or other evidences of indebtedness of the North Dakota life and health

insurance guaranty association not in default.

16. Notes or other interest-bearing obligations of any state development corporation of

which the company is a member, issued in accordance with chapter 10-30.

17. Bonds or other evidences of indebtedness issued, assumed, or guaranteed by Canada

or any province thereof, or by any municipality or district therein, provided that the

obligations are valid and legally authorized and issued.

18. Mortgage bonds and debentures of any solvent railway company duly incorporated

and authorized under the laws of this state or of any other state or insular possession

of the United States or of Canada or of any province thereof.

19. Obligations, including bonds or evidences of indebtedness, or participation in those

bonds or evidences of indebtedness, or loan-backed securities, which are issued,

assumed, guaranteed, or insured by any solvent legal entity duly incorporated and

authorized under the laws of the United States or of any state or insular possession

thereof, or of Canada or of any province thereof, including rights to purchase or sell

these securities or obligations if these rights are traded upon a contract market

designated and regulated by a federal agency and purchased for legitimate hedging,

nonspeculative purposes.

20. Preferred stock, of, or common or preferred stock guaranteed as to dividends by, and

common stock of, any corporation organized under the laws of the United States, any

state or possession of the United States, Canada or any province of Canada, including

rights to purchase or sell these securities or obligations if these rights are traded upon

a contract market designated and regulated by a federal agency and purchased for

legitimate hedging, nonspeculative purposes, subject to the following restrictions and

limitations:

a. Investments in preferred, guaranteed, and common stocks issued or guaranteed

by a single person may not exceed three percent of the insurance company's

admitted assets.

b. Investments in preferred, guaranteed, and common stocks may not exceed in the

aggregate the greater of twenty-five percent of admitted assets or one hundred

percent of the capital and surplus of a nonlife insurance company.

c. Investments in preferred, guaranteed, and common stocks may not exceed in the

aggregate twenty percent of the life insurance company's admitted assets.

For purposes of this section, preferred stock includes mandatory sinking fund

preferred stock. Common stock includes shares of mutual funds, master limited

partnerships trading as common stock, and American deposit receipts that are traded

on a nationally recognized securities exchange or on the national association of

securities dealers automated quotations system.

21. Savings accounts, under certificates of deposit or in any other form, in solvent banks

and trust companies which have qualified for federal deposit insurance corporation

protection, shares and savings accounts, under certificates of deposit, investment

certificates, or in any other form, in solvent savings and loan associations organized

under federal law or state law of any state which have qualified for federal savings and

loan insurance corporation protection, and shares and deposit accounts, under

certificates of deposit or in any other form, in solvent state or federally chartered credit

unions which are insured by the national credit union administration. Investments in

the shares and accounts are not limited to, or by, the amount of any such insurance

protection. Short-term or liquidity investments such as certificates of deposit,

repurchase agreements, bankers' acceptances, commercial paper, money market

mutual funds, or current interest accounts in solvent banks and trust companies,

savings and loan associations, state or federally chartered credit unions, investment

brokerage houses which are regulated by a federal agency, and such other types of

investments as may be deemed appropriate and authorized by rule by the

commissioner.

22. Loans made upon the security of its own policies, if a life insurance company, but no

loan on any policy may exceed the reserve value thereof.

23. Notes secured by mortgages on unencumbered real estate, including construction

loans and leaseholds substantially having and furnishing the rights and protection of a

first real estate mortgage, within the United States or any province of Canada. An

investment in a construction loan covering any single parcel of real estate may not

exceed one quarter of one percent of the admitted assets of the company. Investments

in construction loans in the aggregate may not exceed two percent of the admitted

assets of the company. No loan may be made under this subsection unless at the date

of acquisition the total indebtedness secured by such lien does not exceed eighty

percent of the value of the property upon which it is a lien, provided that the loan

requires immediate scheduled payment in periodic installments of principal and

interest and periodic payments are made no less frequently than annually. A loan that

does not meet these requirements may not exceed seventy-five percent of the value of

the property. A loan may be made in an amount exceeding these percentage

limitations if the value of the property mortgaged in excess of the limitation is

guaranteed or insured by the federal housing administration or guaranteed by the

administrator of veterans' affairs or is insured by private mortgage insurance through

an insurance company authorized to do business in this state. Loans may be

amortized on the basis of a final maturity not exceeding thirty years from the date of

the loan with an actual maturity date of the loan at any time less than thirty years. A

loan on a single-family dwelling, when the loan is amortized on the basis of a final

maturity twenty-five years or less from the date of the loan, may be made in an amount

not exceeding eighty percent of the value of the property mortgaged. The loan on a

single-family dwelling may be made in an amount exceeding eighty percent so long as

any amount over eighty percent of the value of the property mortgaged is insured by

private mortgage insurance through an insurance company authorized to do business

in this state. Buildings may not be included in the valuation of such property unless

they are insured and the policies are made payable to the company as its interest may

appear. A loan may not be made in excess of the amount of insurance carried on the

buildings plus the value of the land. No insurance company may hold less than the

entire loan represented by the bonds or notes described in this subsection except that

a company may own part of an aggregate obligation if all other participants in the

investment are insurance companies authorized to do business in North Dakota or

banks whose depositors are insured by the federal deposit insurance corporation or

savings and loan associations whose members are insured by the federal savings and

loan insurance corporation or unless the security of the bonds or notes, as well as all

collateral papers, including insurance policies, executed in connection therewith, are

made to and held by a trustee which is a solvent bank or trust company having a

paid-in capital of not less than two hundred fifty thousand dollars, except in case of

banks or trust companies incorporated under the laws of the state of North Dakota,

wherein a paid-in capital of not less than one hundred thousand dollars is required. In

case of proper notification of default, the trustee, upon request of at least twenty-five

percent of the holders of the bonds outstanding, and proper indemnification, shall

proceed to protect the rights of the bondholders under the provisions of the trust

indentures. An insurance company may acquire such an interest in real estate directly

or as a joint venture, limited liability company, or through a limited or general

partnership in which the insurance company is a partner. An insurance company

acquiring such an interest in real estate on the basis of a joint venture, limited liability

company, or through a limited or general partnership may acquire such an interest so

long as the company's interest does not exceed seventy-five percent of the value of

the property.

24. First mortgage bonds on improved city real estate in any state, issued by a corporation

duly incorporated under the laws of any state of the United States, if the loans on the

real estate are made in accordance with the requirements as to first mortgage loans in

subsection 23.

25. Real estate for the production of income or for improvement or development for the

production of income subject to the following provisions and limitations:

a. Real estate used primarily for farming or agriculture may not be acquired under

this subsection.

b. Investments made by any company under this subsection may not at any time

exceed ten percent of the admitted assets of the company.

c. An investment in any single parcel of real estate acquired under this subsection

may not exceed two percent of the admitted assets of the company.

d. The real estate, including the cost of improvements, must be valued at cost and

the improvements may be depreciated annually at an average rate of not less

than two percent of the original cost.

e. An insurance company may acquire such real estate or an interest in such real

estate directly or as a joint venture, limited liability company, or through a limited

or general partnership in which the insurance company is a partner.

26. Land and buildings used as home or regional offices, subject to the following

provisions and limitations:

a. Land and buildings thereon owned by the company in which the square footage

of the property is more than fifty percent occupied by the company and its

affiliates.

b. Investments or total commitment in the land and buildings may not aggregate

more than ten percent of the company's admitted assets without the consent of

the commissioner.

c. The real estate, including the cost of improvements, must be valued at cost and

the improvements must be depreciated annually at an average rate of not less

than two percent of the original cost.

27. Investments by loans or otherwise, in the purchase of electric or mechanical

machines, including software, constituting a data processing system. The company

may hold the system as an admitted asset for use in connection with the business of

the company if its aggregate cost does not exceed three percent of the company's

capital and surplus and the cost of the components constituting the system is fully

amortized over a period of not to exceed five years. If a data processing system

consists of separate components acquired at different times, then the cost of each

component must be amortized over a period not to exceed five years commencing

with the date of acquisition of each component.

28. Promissory notes amply secured by the pledge of bonds or other evidences of

indebtedness in which the company is authorized to invest its funds by the provisions

of this section.

29. Ownership of, or loans secured by first liens upon:

a. Production payments or interests therein payable from oil, gas, other

hydrocarbons, or other minerals in producing properties located in areas of

established and continuing production within the United States or the adjacent

continental shelf areas, which production payments are dischargeable from

property interests appraised by independent petroleum engineers at the time of

the acquisition or loan, based on current market prices, to have a current market

value of at least one hundred fifty percent of the purchase price of, or the amount

loaned upon the security of, such production payments. The term "production

payments" means rights to oil, gas, other hydrocarbons, or other minerals in

place or as produced which entitle the owner thereof to a specified fraction or

percentage of production or the proceeds thereof, until a specified or

determinable sum of money has been received, and which have investment

qualities and characteristics in which the speculative elements are not

predominant.

b. Royalty interests, overriding royalty interests, net profit interests, leasehold

interests, working interests, or other interests or rights in oil, gas, other

hydrocarbons, or other minerals in place or as produced, which interests or rights

may be subject to production payments of the nature described in subdivision a.

No domestic insurance company may invest more than five percent of its admitted

assets in the ownership of such interests or rights. In determining the amount invested

in such interests or rights at any given time, each insurance company may evaluate

such interests or rights in such manner as will permit it to amortize the interests or

rights over a period of time during which not more than seventy-five percent of the

dollar value of the recoverable production accruing to such interests or rights will be

produced, as determined by independent petroleum engineers at the time of

investment.

30. Obligations secured by a pledge of personal property, as follows:

a. Tangible personal property, or equipment trust certificates or other instruments

evidencing an interest in or debt secured by tangible personal property, if there is

a right to receive determined portions of rental, purchase, or other fixed obligatory

payments for the use or purchase of such tangible personal property.

b. Bonds, notes, or other evidences of indebtedness secured wholly or partially by

tangible personal property, provided that at the date of acquisition the amount of

such indebtedness does not exceed sixty-six and two-thirds percent of the value

of such tangible personal property.

The aggregate outstanding investment made under subdivisions a and b may not

exceed five percent of the admitted assets of the life insurance company.

31. Loans, securities, or investments issued by a small business investment company

created by the Myron G. Nelson Fund, Incorporated, and licensed by the small

business administration under the Small Business Investment Company Act of 1958

[Pub. L. 85-699; 72 Stat. 689; 15 U.S.C. 661 et seq.] or the Small Business Equity

Enhancement Act of 1992 [Pub. L. 102-366; 106 Stat. 1007-1020; 15 U.S.C. 661

et seq.].

32. Loans, securities, or investments in addition to those permitted in this section, whether

or not the loans, securities, or investments qualify or are permitted as legal

investments under its charter or under other provisions of this section or under other

provisions of the laws of this state. The aggregate admitted value of the company's

investments under this section may not at any one time exceed either seven percent of

the company's admitted assets, or the amount equal to the company's capital and

surplus in excess of the minimum capital and surplus required by law, whichever is

less.

33. Loans, securities, or investments in a North Dakota low-risk incentive fund organized

under chapter 26.1-50. The aggregate admitted value of the company's investment

under this subsection may not at any time exceed the lesser of five percent of the

company's admitted assets or the amount equal to the company's capital and surplus

in excess of the minimum capital and surplus required by law. A company making an

investment under this subsection may value at par any investment purchased at par.

34. Foreign investments of substantially the same types as those permitted under

subsections 19 and 20.

a. Under this subsection, a foreign investment is subject to the following restrictions

and limitations:

(1) Foreign investments issued, assumed, guaranteed, or insured by a single

person may not exceed three percent of the insurance company's admitted

assets.

(2) Foreign investments in a single foreign jurisdiction may not exceed in the

aggregate ten percent of the insurance company's admitted assets as to a

foreign jurisdiction that has a sovereign debt rating of one as determined by

the securities valuation office of the national association of insurance

commissioners or three percent of the insurance company's admitted assets

as to any other foreign jurisdiction.

(3) Foreign investments may not exceed in the aggregate twenty percent of the

insurance company's admitted assets.

b. Investments acquired under this subsection must be aggregated with investments

of the same type made under subsection 20 for purposes of determining

compliance with the limitations contained in that subsection.

c. For purposes of this subsection, a foreign investment means an investment in a

foreign jurisdiction or an investment in a legal entity domiciled in a foreign

jurisdiction. A foreign jurisdiction is any jurisdiction other than the United States,

any state or possession of the United States, Canada, or any province of

Canada.

The commissioner may adopt rules as to investments which are permissible for any

domestic insurance company which may waive or increase any limitation on investments or

authorize companies to invest their funds in investments which are not specifically mentioned in

statutes relating to investments if the commissioner finds, after notice and hearing, that such

funds would be well invested and available for the payment of losses. The commissioner, in

adopting such rules, may not be any more restrictive, or place any greater limitations on, any

type of investment in which companies are authorized by statute to invest their funds.

This section does not prohibit a company from taking any action deemed necessary or

expedient for the protection of investments made by it or from accepting in good faith, to protect

its interests, securities, or property not mentioned in this section in payment or to secure debts

due to it.
N.D. Cent. Code § 26.1-18.1-25 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-25
26.1-18.1-25. Coordination of benefits
Status: in_force

26.1-18.1-25. Coordination of benefits

1. Health maintenance organizations are permitted, but not required, to adopt

coordination of benefits provisions to avoid overinsurance and to provide for the

orderly payment of claims when a person is covered by two or more group health

insurance or health care plans.

2. If health maintenance organizations adopt coordination of benefits, the provisions must

be consistent with the coordination of benefits provisions that are in general use in the

state for coordinating coverage between two or more group health insurance or health

care plans.

3. To the extent necessary for health maintenance organizations to meet their obligations

as secondary carriers under the rules for coordination, health maintenance

organizations shall make payments for services that are received from nonparticipating

providers, provided outside their service areas, or not covered under the terms of their

group contracts or evidence of coverage.
N.D. Cent. Code § 26.1-21-12 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-12
26.1-21-12. Duty of state auditor - Investigations - Review of coverage
Status: in_force

26.1-21-12. Duty of state auditor - Investigations - Review of coverage

1. Upon notification from the office of jeopardized fund interests under section

26.1-21-02, the state auditor may investigate the relevant state agency or political

subdivision and may provide a report to the office regarding any findings.

2. The state auditor may evaluate the blanket bond coverage when conducting an audit

of a state agency or political subdivision. The state auditor may recommend changes

in the amount of coverage in the audit report.

3. Costs incurred by the state auditor under subsection 1 must be paid from the fund.

4. The state auditor may contract for an investigation under subsection 1.
N.D. Cent. Code § 26.1-02-15 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-15
26.1-02-15. Filing and status of foreign decrees
Status: in_force

26.1-02-15. Filing and status of foreign decrees

A certified copy of any foreign decree may be filed in the office of the clerk of any district

court of this state and concurrently in the office of the commissioner with information showing

which district court is being used. The clerk, upon receiving verification from the commissioner,

shall treat the foreign decree in the same manner as a decree of the district court. A filed foreign

decree has the same effect as a decree of a district court of this state, and is subject to the

same procedures, defenses, and proceedings for reopening, vacating, or staying as a decree of

a district court and may be enforced or satisfied in like manner.
N.D. Cent. Code § 26.1-26.6-10 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-10
26.1-26.6-10. Rules
Status: in_force

26.1-26.6-10. Rules

The commissioner may adopt reasonable rules for implementation and administration of this

chapter.
N.D. Cent. Code § 26.1-18.1-01 — ND Code / Title 26.1 / Chapter 26.1-18.1 / Section 26.1-18.1-01
26.1-18.1-01. Definitions
Status: in_force

26.1-18.1-01. Definitions

1. "Basic health care services" means the following medically necessary services:

preventive care, emergency care, inpatient and outpatient hospital and physician care,

diagnostic laboratory, and diagnostic and therapeutic radiological services.

2. "Capitated basis" means fixed per member per month payment or percentage of

premium payment wherein the provider assumes the full risk for the cost of contracted

services without regard to the type, value, or frequency of services provided. For

purposes of this definition, capitated basis includes the cost associated with operating

staff model facilities.

3. "Carrier" means a health maintenance organization, an insurer, a nonprofit hospital

and medical service corporation, or other entity responsible for the payment of benefits

or provision of services under a group contract.

4. "Copayment" means an amount an enrollee must pay in order to receive a specific

service which is not fully prepaid.

5. "Deductible" means the amount an enrollee is responsible to pay out of pocket before

the health maintenance organization begins to pay the costs associated with

treatment.

6. "Enrollee" means an individual who is covered by a health maintenance organization.

7. "Evidence of coverage" means a statement of the essential features and services of

the health maintenance organization coverage which is given to the subscriber by the

health maintenance organization or by the group contractholder.

8. "Extension of benefits" means the continuation of coverage under a particular benefit

provided under a contract following termination with respect to an enrollee who is

totally disabled on the date of termination.

9. "Grievance" means a written complaint submitted in accordance with the health

maintenance organization's formal grievance procedure by or on behalf of the enrollee

regarding any aspect of the health maintenance organization relative to the enrollee.

10. "Group contract" means a contract for health care services which by its terms limits

eligibility to members of a specified group. The group contract may include coverage

for dependents.

11. "Group contractholder" means the person to which a group contract has been issued.

12. "Health maintenance organization" means any person that undertakes to provide or

arrange for the delivery of basic health care services to enrollees on a prepaid basis,

except for enrollee responsibility for copayments or deductibles or both. However, a

qualified program of all-inclusive care for the elderly is not a health maintenance

organization.

13. "Health maintenance organization producer" means an insurance producer, as defined

in section 26.1-26-02, who solicits, negotiates, effects, procures, delivers, renews, or

continues a policy or contract for health maintenance organization membership, or

who takes or transmits a membership fee or premium for such a policy or contract,

other than for that person, or a person who advertises or otherwise holds out to the

public as such.

14. "Individual contract" means a contract for health care services issued to and covering

an individual. The individual contract may include dependents of the subscriber.

15. "Insolvent" or "insolvency" means that the organization has been declared insolvent

and placed under an order of liquidation by a court of competent jurisdiction.

16. "Managed hospital payment basis" means agreements wherein the financial risk is

primarily related to the degree of utilization rather than to the cost of services.

17. "Net worth" means the excess of total admitted assets over total liabilities, but the

liabilities do not include fully subordinated debt.

18. "Participating provider" means a provider as defined in subsection 19 who, under an

express or implied contract with the health maintenance organization or with its

contractor or subcontractor, has agreed to provide health care services to enrollees

with an expectation of receiving payment, other than copayment or deductible, directly

or indirectly from the health maintenance organization.

19. "Provider" means any physician, hospital, or other person licensed or otherwise

authorized to furnish health care services.

20. "Qualified program of all-inclusive care for the elderly" means a program that:

a. Is sponsored by a religious or charitable organization that is itself or is controlled

by an entity organized under section 501(c)(3) of the Internal Revenue Code [26

U.S.C. 501(c)(3)];

b. Has been approved by the centers for Medicare and Medicaid services of the

United States department of health and human services to operate, and is

currently operating as, a program of all-inclusive care for the elderly; and

c. Has revenues from private pay sources which do not exceed ten percent of the

program's total revenues.

21. "Replacement coverage" means the benefits provided by a succeeding carrier.

22. "Subscriber" means an individual whose employment or other status, except family

dependency, is the basis for eligibility for enrollment in the health maintenance

organization, or in the case of an individual contract, the person in whose name the

contract is issued.

23. "Uncovered expenditures" means the costs to the health maintenance organization for

health care services that are the obligation of the health maintenance organization, for

which an enrollee may also be liable in the event of the health maintenance

organization's insolvency and for which no alternative arrangements have been made

that are acceptable to the commissioner.
N.D. Cent. Code § 26.1-25.2-03 — ND Code / Title 26.1 / Chapter 26.1-25.2 / Section 26.1-25.2-03
26.1-25.2-03. Prohibited claims usage
Status: in_force

26.1-25.2-03. Prohibited claims usage

An insurer may not consider the following events for purposes of surcharging, declining,

nonrenewing, or canceling either personal insurance coverage or a binder for personal

insurance coverage. The events include:

1. An insured's inquiry into the type or level of coverage or an inquiry into whether a

policy will cover a loss;

2. An insured's inquiry regarding coverage for a loss if the insured files no claim;

3. A claim if the insurer conducts no investigation of a claim or initiates no other claim

activity and the claim does not involve deceptive practices on the part of the insured;

4. A claim if the insurer makes no payment to or on behalf of the insured and the claim

does not involve deceptive practices on the part of the insured;

5. A first-party property claim resulting from wind or hail if the insured had no previous

wind or hail claim on that property within the previous five years regardless of the

insurer unless the insurer can provide evidence that the insured unreasonably failed to

maintain the property and the failure to maintain the property contributed to the loss; or

6. A claim if the claim is over ten years old, unless the insurer can provide evidence that

the insured unreasonably failed to maintain the property and the failure to maintain the

property contributed to the loss.
N.D. Cent. Code § 26.1-57-01 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-01
26.1-57-01. Definitions
Status: in_force

26.1-57-01. Definitions

As used in this chapter:

1. "Administrator" means a person, other than an insurer or creditor, which performs

administrative or operational functions pursuant to guaranteed asset protection waiver

programs.

2. "Borrower" means a debtor, retail buyer, or lessee, under a finance agreement.

3. "Creditor" means the lender in a loan or credit transaction; the lessor in a lease

transaction; a dealer that provides credit to a motor vehicle retail buyer; the seller in a

commercial retail installment transaction; or an assignee of any of the these persons.

4. "Dealer" has the same meaning as provided under section 39-01-01.

5. "Finance agreement" means a loan, lease, or retail installment sales contract for the

purchase or lease of a motor vehicle.

6. "Free-look period" means the period of time from the effective date of the guaranteed

asset protection waiver until the date the borrower may cancel the contract without

penalty, fees, or costs to the borrower. This period of time may not be shorter than

thirty days.

7. "Guaranteed asset protection waiver" means a contractual agreement in which a

creditor agrees for a separate charge to cancel or waive all or part of amounts due on

a borrower's finance agreement if there is a total physical damage loss or unrecovered

theft of the motor vehicle, which agreement must be part of, or a separate addendum

to, the finance agreement.

8. "Insurer" means an insurance company licensed, registered, or otherwise authorized

to do business under the insurance laws of this state.

9. "Motor vehicle" has the same meaning as provided under section 39-01-01, except the

term includes a snowmobile and a trailer for a snowmobile, motorcycle, boat, camper,

or personal watercraft.
N.D. Cent. Code § 26.1-03.2-06 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-06
26.1-03.2-06. Mandatory control level event
Status: in_force

26.1-03.2-06. Mandatory control level event

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

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

organization's total adjusted capital is less than its mandatory control level

risk-based capital;

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

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

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

under section 26.1-03.2-07; or

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

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

notification by the commissioner to the health organization that the commissioner,

after a hearing, has rejected the health organization's challenge.

2. In the event of a mandatory control level event, the commissioner shall take such

actions as are necessary to place the health organization under regulatory control

under chapter 26.1-06.1. In that event, the mandatory control level event must be

deemed sufficient grounds for the commissioner to take action under chapter

26.1-06.1, and the commissioner shall have the rights, powers, and duties with respect

to the health organization as are set forth in chapter 26.1-06.1. If the commissioner

takes actions pursuant to an adjusted risk-based capital report, the health organization

is entitled to the protections of chapter 26.1-06.1 pertaining to summary proceedings.

Notwithstanding any of the foregoing, the commissioner may forego action for up to

ninety days after the mandatory control level event if the commissioner finds there is a

reasonable expectation that the mandatory control level event may be eliminated

within the ninety-day period.
N.D. Cent. Code § 26.1-28-03 — ND Code / Title 26.1 / Chapter 26.1-28 / Section 26.1-28-03
26.1-28-03. Licensing of vending machine devices - Expiration date
Status: in_force

26.1-28-03. Licensing of vending machine devices - Expiration date

The insurance producer shall apply for a license for each vending machine to be used. The

commissioner shall prescribe the form of the application. A fee of two dollars for each vending

machine must be paid at the time of making the application. Upon approval of the application,

the commissioner shall issue to the insurance producer a special vending machine license. The

license applies to a specific vending machine or to any machine of identical type which, after

written notice by the insurance producer to the commissioner, is substituted for it. The license

must specify the name and address of the insurance producer, the name and home office

address of the insurer, the name or other identifying information of the policy or policies to be

sold, the serial number or other identification of the vending machine, and the address, including

the location on the premises, where the machine is to be in operation. A vending machine for

which a license has been issued for operation at a specific address may be transferred to a

different address during the license year upon written notice to the commissioner at the time of

the transfer. The license for each vending machine expires April thirtieth of each year, but may

be renewed from year to year by the commissioner upon approval of the application of the

insurance producer, the furnishing of information requested by the commissioner, and the

payment of two dollars for each license year or part thereof for each machine. Proof of the

existence of a subsisting license must be displayed on or about each vending machine in use in

the manner the commissioner may reasonably require.
N.D. Cent. Code § 26.1-12.1-02 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-02
26.1-12.1-02. Mutual insurance holding company - Formation
Status: in_force

26.1-12.1-02. Mutual insurance holding company - Formation

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

by forming an insurance holding company based upon a mutual plan and continuing the

corporate existence of the reorganizing insurer as a stock insurance company. The

commissioner, if satisfied the reorganization meets the standards set forth in section

26.1-12.1-06, may approve the proposed plan of reorganization or may require as a condition of

approval the modification of the proposed plan of reorganization as the commissioner finds

necessary for the plan to meet the standards of section 26.1-12.1-06. The commissioner shall

retain jurisdiction over the mutual insurance holding company and the reorganized insurer

according to this section and chapter 26.1-10 to assure that policyholders' and members'

interests are protected.

All of the initial shares of the capital stock of the reorganized insurer must be issued to the

mutual insurance holding company or to an intermediate stock holding company that is wholly

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

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

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

become members of the mutual insurance holding company in accordance with the articles of

incorporation and bylaws of the mutual insurance holding company and the articles of

incorporation and bylaws of the reorganized insurance company as approved by the

commissioner. The mutual insurance holding company, directly or indirectly through an

intermediate stock holding company, must control at all times a majority of the voting shares of

the capital stock of the reorganized insurance company but this does not prohibit any future

demutualization or other conversion.
N.D. Cent. Code § 26.1-06.1-32 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-32
26.1-06.1-32. Recovery of premiums owed
Status: in_force

26.1-06.1-32. Recovery of premiums owed

1. a. An insurance producer, premium finance company, or any other person, other

than the insured, responsible for the payment of a premium is obligated to pay

any unpaid premium for the full policy term due the insurer at the time of the

declaration of insolvency, whether earned or unearned, as shown on the records

of the insurer. The liquidator shall also have the right to recover from such person

any part of an unearned premium that represents commission of such person.

Credits or setoffs, or both, may not be allowed to an insurance producer or

premium finance company for any amounts advanced to the insurer by the

insurance producer or premium finance company on behalf of, but in the absence

of a payment by, the insured.

b. An insured is obligated to pay any unpaid earned premium due the insurer at the

time of the declaration of insolvency, as shown on the records of the insurer.

2. Upon satisfactory evidence of a violation of this section, the commissioner may pursue

either one or both of the following courses of action:

a. Suspend or revoke or refuse to renew the licenses of such offending party or

parties.

b. Impose a penalty of not more than one thousand dollars for each and every act in

violation of this section by said party or parties.

3. Before taking any action as set forth in subsection 2, the commissioner shall give

written notice to the person, company, association, or exchange accused of violating

the law, stating specifically the nature of the alleged violation and fixing a time and

place, at least ten days thereafter, when a hearing on the matter must be held. After

the hearing, or upon failure of the accused to appear at the hearing, if a violation is

found to have been made, the commissioner shall impose any of the penalties under

subsection 2 as deemed advisable.

4. When the commissioner takes action in any or all of the ways set out in subsection 2,

the party aggrieved may appeal from said action to the district court.
N.D. Cent. Code § 26.1-09-03 — ND Code / Title 26.1 / Chapter 26.1-09 / Section 26.1-09-03
26.1-09-03. Reciprocal or interinsurance contracts - Execution
Status: in_force

26.1-09-03. Reciprocal or interinsurance contracts - Execution

Reciprocal or interinsurance contracts may be executed by an attorney, insurance producer,

or other representative, in this chapter designated as an attorney, duly authorized and acting for

the subscribers. The attorney may be a corporation. The office of the attorney may be

maintained at the place designated by the subscribers in the power of attorney.
N.D. Cent. Code § 26.1-03-11.4 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-11.4
26.1-03-11.4. Market conduct annual statement
Status: in_force

26.1-03-11.4. Market conduct annual statement

1. The commissioner may require a foreign or domestic insurance company to annually

file a market conduct annual statement. The statement must:

a. Be filed with the commissioner, or with the commissioner's designee, on a date

specified by the commissioner;

b. Include the scope of information prescribed by the commissioner; and

c. Be in the proper form and transmitted, as prescribed by the commissioner.

2. The commissioner may, in the commissioner's discretion and for good cause, exclude

an insurance company from filing a statement under this section.

3. The commissioner may adopt rules to implement and administer this section.
N.D. Cent. Code § 26.1-36-01 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-01
26.1-36-01. Scope
Status: in_force

26.1-36-01. Scope

No section of this chapter applies to or affects any policy of workforce safety and insurance

or any policy of liability insurance with or without supplementary expense coverage therein; or

any policy or contract of reinsurance; or any blanket or group insurance policy, except when the

section refers to a blanket or group insurance policy; or life insurance, endowment or annuity

contracts, or contracts supplemental thereto which contain only such provisions relating to

accident and sickness insurance as provide additional benefits in case of death or

dismemberment or loss of sight by accident, or as operate to safeguard such contracts against

lapse, or to give a special surrender value or special benefit or an annuity in the event that the

insured or annuitant shall become totally and permanently disabled, as defined by the contract

or supplemental contract.
N.D. Cent. Code § 26.1-19-15 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-15
26.1-19-15. Fees
Status: in_force

26.1-19-15. Fees

A prepaid legal services organization shall pay to the commissioner:

1. For filing a copy of its application for a certificate of authority or amendment thereto,

the amount provided by section 26.1-01-07.

2. For filing an annual report, the amount provided by section 26.1-01-07.

3. The expenses of any examinations conducted pursuant to section 26.1-19-14.
N.D. Cent. Code § 26.1-15.1-23 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-23
26.1-15.1-23. Exemption from insurance laws
Status: in_force

26.1-15.1-23. Exemption from insurance laws

Societies are governed by this chapter and are exempt from all other provisions of the

insurance laws of this state, except as expressly designated therein or as specifically made

applicable by this chapter.
N.D. Cent. Code § 26.1-44-06 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-06
26.1-44-06. Records of surplus lines producer
Status: in_force

26.1-44-06. Records of surplus lines producer

1. If the insured's home state is this state, each surplus lines producer shall keep in this

state a full and true record of each surplus lines insurance contract placed by or

through the producer, including a copy of the policy, certificate, cover note, or other

evidence of insurance showing each of the following applicable items:

a. Amount of the insurance, risks, and perils insured;

b. Brief description of the property insured and its location;

c. Gross premium charged;

d. Any return premium paid;

e. Rate of premium charged upon the several items of property;

f. Effective date and terms of the contract;

g. Name and address of the insured;

h. Name and address of the insurer;

i. Amount of tax and other sums to be collected from the insured;

j. Identity of the producer of record;

k. Any confirming correspondence from the insurer or its representative; and

l. The application.

2. The surplus lines producer shall keep open the record of each contract at all

reasonable times to examination by the commissioner without notice for a period not

less than five years following termination of the contract. In lieu of maintaining offices

in this state, each nonresident surplus lines producer shall make available to the

commissioner any and all records that the commissioner deems necessary for

examination.
N.D. Cent. Code § 26.1-15.1-26 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-26
26.1-15.1-26. Reports
Status: in_force

26.1-15.1-26. Reports

Reports must be filed in accordance with this section.

1. Every society transacting business in this state shall annually on or before the first day

of March file with the commissioner a true statement of its financial condition,

transactions, and affairs for the preceding calendar year and pay the fee prescribed by

section 26.1-01-07. The statement must be in general form and context as approved

by the national association of insurance commissioners for fraternal benefit societies

and as supplemented by the commissioner.

2. As part of the annual statement, each society shall on or before the first day of March

file with the commissioner a valuation of its certificates in force on the preceding

December thirty-first. The commissioner may for cause shown extend the time for filing

the valuation report for not more than two calendar months. The valuation must be

done in accordance with the standards specified in section 26.1-15.1-25. The valuation

and underlying data must be certified by a qualified actuary or, at the expense of the

society, verified by the actuary of the insurance department of the state of domicile of

the society.

3. A society neglecting to file the annual statement in the form and within the time

provided by this section shall forfeit one hundred dollars for each day during which the

neglect continues and, upon notice by the commissioner to that effect, its authority to

do business in this state ceases while the default continues.
N.D. Cent. Code § 26.1-39-06 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-06
26.1-39-06. Standard fire insurance policy
Status: in_force

26.1-39-06. Standard fire insurance policy

No fire insurance contract or policy, including a renewal, may be made, issued, used, or

delivered by any insurer or by any insurance producer or representative of the insurer on

property in this state other than such as conform in all particulars as to blanks, size of type,

context, provisions, agreements, and conditions with the 1943 standard fire insurance policy of

the state of New York, a copy of which must be filed in the office of the commissioner as the

standard policy for this state. The cancellation provisions contained in the standard policy are

superseded to the extent sections 26.1-39-10 through 26.1-39-21 are inconsistent with the

provisions. No other or different provision, agreement, condition, or clause may be made a part

of the contract or policy or be endorsed on the contract or policy or delivered with the contract or

policy, except as follows:

1. The name of the insurer, its location and place of business, the date of its

incorporation or organization, and the state or county under which the insurer is

organized, the amount of paid-up capital stock, whether it is a stock or mutual

company, the names of its officers, the number and the date of the policy, and

appropriate company emblems may be printed on policies issued on property in this

state; provided, however, that any insurer organized under special charter provisions

may so indicate upon its policy and may add a statement of the plan under which it

operates in this state.

2. Printed or written forms of description and specifications or schedules of the property

covered by any particular policy and any other matter necessary to express clearly all

the facts and conditions of insurance on any particular risk, which facts or conditions

may not be inconsistent with or a waiver of any of the provisions or conditions of the

standard policy, may be written upon or attached or appended to any policy issued on

property in this state. Appropriate forms of contracts, supplemental contracts, or

endorsements, by which the interest in the property described is insured against one

or more of the perils which the insurer is empowered to assume, may be used in

connection with the standard policy. The forms of contracts, supplemental contracts, or

endorsements attached or printed on the policy may contain provisions and

stipulations inconsistent with the standard policy if applicable only to the other perils.

The first page of the standard policy may be rearranged to provide space for the listing

of rates and premiums for coverages insured under the policy or under endorsements

attached or printed on the policy, and such other data as may be included for

duplication on daily reports for office records.

3. An insurer, if entitled to do business in this state, may with the approval of the

commissioner, if not already included in the standard form as filed with the

commissioner, print on its policies any provision which it is required by law to insert in

the policies if the provision is not in conflict with the laws of this state or the United

States, or of the provisions of the standard policy, but the provision must be printed

apart from the other provisions, agreements, or conditions of the policy and in type not

smaller than the body of the policy and a separate title, as follows: "Provisions required

by law to be stated in this policy", and must be a part of the policy.

4. A commercial insurance policy providing coverage for fire insurance in accordance

with this section may exclude coverage for loss by fire insured against if the fire is

caused directly or indirectly by terrorism.

5. There may be endorsed in writing on the outside of any policy the name, with the word

"Producer or Producers" and place of business, of any insurance producer or

producers. There may also be added, with the approval of the commissioner, a

statement of the group of companies with which the insurer is financially affiliated.

6. When two or more insurers, each having previously complied with the laws of this

state, unite to issue a joint policy, there may be expressed in the head line of each

policy the fact of the severalty of the contract; also the proportion of premiums to be

paid to each insurer and the proportion of liability which each insurer agrees to

assume. And in the printed conditions of the policy the necessary change may be

made from the singular to plural number, when reference is had to the insurers issuing

such policy.

7. With the approval of the commissioner, a combined farm policy may be used, the fire

portion of which must be substantially in accord with the standard policy.

8. The standard policy is an interest policy and must be so construed as to at all times

protect the interest, whatever it may be, of any named insured. Provided, however,

that a five-day grace period is allowed after the execution of any written instrument

transferring interest in insured property during which full protection must be granted

under the terms of the policy.

9. In case of other coverage on the same peril, the liability of each insurer may not be for

any greater amount or proportion of the loss than the ratio such insurance bears to the

valid and collectible whole insurance covering the property against the peril involved.

10. No contract or policy issued under this section may contain a limitation of less than

three years for the bringing of any suit or action under the contract or policy.

11. This section does not apply to inland marine, ocean marine, or automobile insurance.
N.D. Cent. Code § 26.1-26-31.2 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.2
26.1-26-31.2. Continuing education advisory task force
Status: in_force

26.1-26-31.2. Continuing education advisory task force

The commissioner shall appoint a continuing education advisory task force consisting of

nine members. The members must be representative, to the extent possible, of the various

members of the insurance industry and of the several classes of insurance. Before making

appointments to the advisory task force, the commissioner shall solicit nominations from the

several professional organizations representing persons selling insurance in this state and from

the organizations representing companies authorized to do business in this state. Members are

entitled to expenses pursuant to sections 44-08-04 and 54-06-09. The advisory task force may

recommend any rules to the commissioner which are necessary to fulfill its duties and powers.
N.D. Cent. Code § 26.1-26.6-01 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-01
26.1-26.6-01. Definition
Status: in_force

26.1-26.6-01. Definition

As used in this chapter, unless the context otherwise requires, "bail bond agent" means any

person that has been licensed by the commissioner and appointed by an insurer by power of

attorney to execute or countersign bail bonds for the insurer in connection with the judicial

proceedings and charges and receives money for the services.
N.D. Cent. Code § 26.1-53.1-14 — ND Code / Title 26.1 / Chapter 26.1-53.1 / Section 26.1-53.1-14
26.1-53.1-14. Charges and fees - Refund requirements
Status: in_force

26.1-53.1-14. Charges and fees - Refund requirements

1. A discount plan organization may charge a periodic charge as well as a reasonable

one-time processing fee for a discount plan.

2. If a member cancels the member's membership in the discount plan organization

within the first thirty days after the date of receipt of the signed consumer contract or

agreement, the member shall receive a reimbursement of all periodic charges.

3. If the discount plan organization cancels a membership for any reason other than

nonpayment of charges by the member, the discount plan organization shall make a

pro rata reimbursement of all periodic charges to the member.
N.D. Cent. Code § 26.1-26.9-06 — ND Code / Title 26.1 / Chapter 26.1-26.9 / Section 26.1-26.9-06
26.1-26.9-06. Authority of commissioner to investigate
Status: in_force

26.1-26.9-06. Authority of commissioner to investigate

Within a reasonable time after receipt of a properly completed application for a license

under this chapter, the commissioner may conduct investigations and propound interrogatories

concerning the applicant's qualifications, residence, business affiliations, and any other matter

the commissioner believes necessary or advisable to determine compliance with this chapter or

for the protection of the public.
N.D. Cent. Code § 26.1-44-01.1 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-01.1
26.1-44-01.1. Definitions
Status: in_force

26.1-44-01.1. Definitions

1. "Admitted insurer" means an insurer licensed to engage in the business of insurance

in this state.

2. "Eligible surplus lines insurer" means a nonadmitted insurer with which a surplus lines

producer may place surplus lines insurance pursuant to section 26.1-44-03.

3. "Exempt commercial purchaser" means any person purchasing commercial insurance

that, at the time of placement, meets the following requirements:

a. The person employs or retains a qualified risk manager to negotiate insurance

coverage.

b. The person has paid aggregate nationwide commercial property and casualty

insurance premiums in excess of one hundred thousand dollars in the

immediately preceding twelve months.

c. (1) The person meets at least one of the following criteria:

(a) The person possesses a net worth in excess of twenty million dollars,

as such amount is adjusted pursuant to paragraph 2.

(b) The person generates annual revenues in excess of fifty million

dollars, as such amount is adjusted pursuant to paragraph 2.

(c) The person employs more than five hundred full-time or full-time

equivalent employees per individual insured or is a member of an

affiliated group employing more than one thousand employees in the

aggregate.

(d) The person is a not-for-profit organization or public entity generating

annual budgeted expenditures of at least thirty million dollars, as such

amount is adjusted pursuant to paragraph 2.

(e) The person is a municipality with a population in excess of fifty

thousand persons.

(2) Each fifth January first occurring after July 21, 2010, and ongoing thereafter,

the amounts in subparagraphs a, b, and d of paragraph 1 will be adjusted to

reflect the percentage change for such five-year period in the consumer

price index for all urban consumers published by the bureau of labor

statistics of the department of labor.

4. "Home state".

a. Except as provided in subdivision b, "home state" means, with respect to an

insured:

(1) The state in which an insured maintains its principal place of business or, in

the case of an individual, the individual's principal residence; or

(2) If one hundred percent of the insured risk is located out of the state referred

to in paragraph 1, the state to which the greatest percentage of the insured's

taxable premium for that insurance contract is allocated.

b. If more than one insured from an affiliated group are named insureds on a single

nonadmitted insurance contract, the term "home state" means the home state, as

determined pursuant to subdivision a, of the member of the affiliated group that

has the largest percentage of premium attributed to it under such insurance

contract.

5. "Independently procured insurance" means insurance procured directly by an insured

from a nonadmitted insurer.

6. "Kind of insurance" means one of the types of insurance required to be reported in the

annual statement which must be filed with the commissioner by admitted insurers.

7. "Nonadmitted insurance" means any property and casualty insurance permitted to be

placed directly or through a surplus lines producer with a nonadmitted insurer eligible

to accept such insurance pursuant to section 26.1-44-03.

8. "Nonadmitted insurer" means an insurer not licensed to engage in the business of

insurance in this state but does not include a risk retention group as defined in

paragraph 4 of subdivision a of section 2 of the Liability Risk Retention Act of 1986

[15 U.S.C. 3901(a)(4)].

9. "Surplus lines insurance" means any property and casualty insurance on properties,

risks, or exposures, located or to be performed in this state, permitted to be placed

through a surplus lines producer with a nonadmitted insurer eligible to accept such

insurance pursuant to section 26.1-44-03.

10. "Surplus lines producer" means a person licensed under chapter 26.1-26 to place

insurance on properties, risks, or exposures with nonadmitted insurers eligible to

accept such insurance pursuant to section 26.1-44-03.

11. "Type of insurance" means coverage afforded under the particular policy that is being

placed.
N.D. Cent. Code § 26.1-42.1-05 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-05
26.1-42.1-05. Powers and duties of the association
Status: in_force

26.1-42.1-05. Powers and duties of the association

1. The association:

a. Shall pay covered claims existing before the order of liquidation and arising within

thirty days after the order of liquidation or before the policy expiration date if less

than thirty days after the order of liquidation, or before the insured replaces the

policy or causes the policy's cancellation, if the insured does so within thirty days

of the order of liquidation. The obligation must be satisfied by paying to the

claimant an amount as follows:

(1) An amount not exceeding ten thousand dollars per policy for a covered

claim for the return of unearned premium.

(2) An amount not exceeding three hundred thousand dollars per claim for all

other covered claims.

b. Is not obligated to pay a claimant an amount in excess of the obligation of the

insolvent insurer under the policy or coverage from which the claim arises.

Notwithstanding any other provision of this chapter, a covered claim does not

include a claim filed with the association after the earlier of eighteen months after

the date of the order of liquidation or the final date set by the court for the filing of

claims against the liquidator or receiver of an insolvent insurer and a claim does

not include any claim filed with the association or a liquidator for protection

afforded under the insured's policy for incurred, but not reported, losses.

Any obligation of the association to defend an insured on a covered claim

ceases upon the association's payment, by settlement releasing the insured or on

a judgment, of an amount equal to the lesser of the association's covered claim

obligation limit or the applicable policy limit or upon the association's tender of

that amount.

Notwithstanding any other provision of this chapter, an obligation of the

association to any person ceases when ten million dollars is paid in the aggregate

by the association and any one or more associations similar to the association of

any other state or states or any property and casualty security fund that obtains

contributions from insurers on a preinsolvency basis, to or on behalf of any

insured and the insured's affiliates on covered claims or allowed claims arising

under the policy or policies of any one insolvent insurer. For purposes of this

section, the term "affiliate" means a person who, directly or indirectly, through one

or more intermediaries, controls, is controlled by, or is under common control with

another person. If the association determines that there may be more than one

claimant having a covered claim or allowed claim against the association or any

associations similar to the association or any property and casualty insurance

security fund in other states, under the policy or policies of any one insolvent

insurer, the association may establish a plan to allocate amounts payable by the

association in any manner the association deems equitable.

c. Is deemed the insurer only to the extent of the association's obligation on the

covered claims and to that extent, subject to the limitations provided in this

chapter, has all rights, duties, and obligations of the insolvent insurer as if the

insurer had not become insolvent, including the right to pursue and retain salvage

and subrogation recoverable on paid covered claim obligations. The association

may not be deemed the insolvent insurer for any purpose relating to the issue of

whether the association is amenable to the personal jurisdiction of the courts of

any state.

d. Shall assess member insurer's amounts necessary to pay the obligations of the

association under subdivision a following an insolvency, the expenses of handling

covered claims following an insolvency and other expenses authorized by this

chapter. The assessments of each member insurer must be in the proportion that

the net direct written premiums of the member insurer for the calendar year

preceding the assessment bears to the net direct written premiums of all member

insurers for the calendar year preceding the assessment. Each member insurer

must be notified of the assessment at least thirty days before the assessment is

due. A member insurer may not be assessed in any one year an amount greater

than two percent of that member insurer's net direct written premiums for the

calendar year preceding the assessment. If the maximum assessment, together

with the other assets of the association, does not provide in any one year an

amount sufficient to make all necessary payments, the funds available must be

prorated and the unpaid portion must be paid as soon as funds become available.

The association shall pay claims in any order the association determines

reasonable, including the payment of claims as the claims are received from the

claimants or in groups or categories of claims. The association may exempt or

defer, in whole or in part, the assessment of any member insurer, if the

assessment would cause the member insurer's financial statement to reflect

amounts of capital or surplus less than the minimum amounts required for a

certificate of authority by any jurisdiction in which the member insurer is

authorized to transact insurance; provided, however, that during the period of

deferment, dividends may not be paid to shareholders or policyholders. Deferred

assessments must be paid when payment will not reduce capital or surplus below

required minimums. Deferred assessment payments must be refunded to those

companies receiving larger assessments by virtue of this deferment, or at the

election of any such company, credited against future assessments. Each

member insurer may set off against any assessment authorized payments made

on covered claims and expenses incurred in the payment of these claims by the

member insurer.

e. Shall investigate claims brought against the association and adjust, compromise,

settle, and pay covered claims to the extent of the association's obligation and

deny all other claims. The association may review settlements, releases, and

judgments to which the insolvent insurer or the insolvent insurer's insureds were

parties to determine the extent to which these settlements, releases, and

judgments may be properly contested. The association may appoint and direct

legal counsel retained under liability insurance policies for the defense of covered

claims.

f. Shall handle claims through the association's employees or through one or more

insurers or other persons designated as servicing facilities. Designation of a

servicing facility is subject to the approval of the commissioner, but this

designation may be declined by a member insurer.

g. Shall reimburse each servicing facility for obligations of the association paid by

the facility and for expenses incurred by the facility while handling claims on

behalf of the association and shall pay the other expenses of the association

authorized by this chapter.

2. The association may:

a. Employ or retain persons necessary to handle claims and perform other duties of

the association;

b. Borrow funds necessary to effect the purposes of this chapter in accordance with

the plan of operation;

c. Sue or be sued, and this power to sue includes the power and right to intervene

as a party before any court in this state which has jurisdiction over an insolvent

insurer;

d. Negotiate and become a party to contracts that are necessary to carry out the

purposes of this chapter;

e. Perform acts that are necessary or proper to effectuate the purposes of this

chapter; and

f. Refund to the member insurers in proportion to the contribution of each member

insurer that amount by which the assets of the association exceed the liabilities, if

at the end of any calendar year, the board of directors finds that the assets of the

association exceed the liabilities for the coming year as estimated by the board.

3. Except for actions by member insurers aggrieved by final actions or decisions by the

association pursuant to subdivision h of subsection 3 of section 26.1-42.1-06, all

claims for relief relating to this chapter against the association must be brought in the

courts of this state. These courts have exclusive jurisdiction over all actions relating to

this chapter against the association. Exclusive venue in any action by or against the

association is in the district courts of this state. The association, at its option, may

waive this exclusive venue as to specific actions.
N.D. Cent. Code § 26.1-33-01 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-01
26.1-33-01. Life insurance policy contains entire contract
Status: in_force

26.1-33-01. Life insurance policy contains entire contract

Every life insurance policy issued or delivered in this state by any life insurance corporation

doing business in the state must contain the entire contract between the parties.
N.D. Cent. Code § 26.1-41-05 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-05
26.1-41-05. Self-insurance - Liability policies - Authority of commissioner
Status: in_force

26.1-41-05. Self-insurance - Liability policies - Authority of commissioner

1. Self-insurance used as security required by this chapter may be provided by filing in

satisfactory form all of the following:

a. A continuing undertaking by the owner or other appropriate person to pay basic

no-fault benefits and the liabilities covered by motor vehicle liability insurance and

to perform all other obligations imposed by this chapter.

b. Evidence that appropriate provision exists for the prompt and efficient

administration of all claims, benefits, and obligations provided by this chapter.

c. Evidence that reliable financial arrangements, deposits, or commitments exist

providing assurance for payment of basic no-fault benefits and the liabilities

covered by motor vehicle liability insurance and all other obligations imposed by

this chapter substantially equivalent to those afforded by an insurance policy that

would comply with this chapter.

2. Every insurer authorized to transact the business of motor vehicle liability insurance in

this state shall file with the commissioner as a condition of its continued transaction of

business in this state a form declaring that its motor vehicle liability policies wherever

issued are deemed to provide the security required by this chapter when the motor

vehicle is operated in this state. Any nonadmitted insurer may file this form.

3. The commissioner may adopt necessary rules not inconsistent with this chapter. The

commissioner may provide schedules of reasonable maximum benefits payments for

specified medical services and rehabilitation expenses which basic no-fault insurers

may incorporate into their policies of basic or optional excess coverages afforded

pursuant to this chapter.
N.D. Cent. Code § 26.1-11-19 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-19
26.1-11-19. Application
Status: in_force

26.1-11-19. Application

This chapter does not apply to any action, suit, or proceeding against any unauthorized

foreign or alien insurance company arising out of any reinsurance, ocean marine, aircraft, or

railway insurance contract, insurance against legal liability arising out of the ownership,

operation, or maintenance of any property having a permanent situs outside this state, or

insurance against loss of or damage to any property having a permanent situs outside this state,

when the insurance contract designates the commissioner or a bona fide resident of this state

the attorney of the unauthorized insurance company 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 the contract or when the insurance company enters a general appearance in the

suit, action, or proceeding.
N.D. Cent. Code § 26.1-20.1-05 — ND Code / Title 26.1 / Chapter 26.1-20.1 / Section 26.1-20.1-05
26.1-20.1-05. Books and records
Status: in_force

26.1-20.1-05. Books and records

Every licensee shall maintain books and records, satisfactory to the commissioner, of the

licensee's premium finance agreements. The records must be maintained for a period of three

years after making the final entry with respect to a premium finance agreement. The records

may be preserved in photographic form. The records must be available for inspection by the

commissioner during ordinary business hours. The commissioner may require any licensee to

bring the licensee's records to the commissioner's office for examination.
N.D. Cent. Code § 26.1-26-51 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-51
26.1-26-51. Statute of limitations
Status: in_force

26.1-26-51. Statute of limitations

A civil action for the recovery of damages resulting from negligence or breach of contract

brought against any person licensed under this chapter by any person claiming to have been

injured as a result of the providing of insurance services or the failure to provide insurance

services by a licensee may not be commenced in this state after July 31, 1995, unless the

action is commenced on or before the earlier of:

1. Two years from the date the alleged act, omission, or neglect is discovered or should

have been discovered by the exercise of reasonable diligence; or

2. Six years after performance of the service for which the claim for relief arises, unless

discovery was prevented by the fraudulent conduct of the licensee.
N.D. Cent. Code § 26.1-33-03 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-03
26.1-33-03. Form of life insurance policy restricted
Status: in_force

26.1-33-03. Form of life insurance policy restricted

No life insurance policy may be issued or delivered in this state unless the form of the policy

is authorized by this chapter.
N.D. Cent. Code § 26.1-17-31 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-31
26.1-17-31. Annual statement
Status: in_force

26.1-17-31. Annual statement

Every health service corporation shall transmit to the commissioner, not later than March

first of each year, a statement of its condition and business for the year ending on the preceding

December thirty-first. The statement must be in the form and must contain the information

prescribed by the commissioner.
N.D. Cent. Code § 26.1-30.1-03.1 — ND Code / Title 26.1 / Chapter 26.1-30.1 / Section 26.1-30.1-03.1
26.1-30.1-03.1. Five-day notice exception for cancellation
Status: in_force

26.1-30.1-03.1. Five-day notice exception for cancellation

Policies subject to this chapter may be canceled upon five days' written notice to the named

insureds if one or more of the following conditions exist:

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

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

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

repaired.

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

sixty days following satisfactory adjustment of loss.

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

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

repair and reconstruction which are properly secured against unauthorized entry.

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

those buildings subject to extremely hazardous conditions not contemplated in filed

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

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

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

accordance with applicable law.

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

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

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

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

defrauding an insurer.

9. Buildings with any of the following conditions:

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

consecutive days or more.

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

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

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

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

which are violative of law or public policy.
N.D. Cent. Code § 26.1-34-04 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-04
26.1-34-04. Cash surrender benefit to be at least equal to value of paid-up annuity benefit
Status: in_force

26.1-34-04. Cash surrender benefit to be at least equal to value of paid-up annuity

benefit.

For annuity contracts that provide cash surrender benefits, the cash surrender benefits

available prior to maturity may not be less than the present value as of the date of surrender of

that portion of the maturity value of the paid-up annuity benefit which would be provided under

the contract at maturity arising from considerations paid prior to the time of cash surrender

reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of

the contract. The present value must be calculated on the basis of an interest rate not more

than one percent higher than the interest rate specified in the contract for accumulating the net

considerations to determine the maturity value, decreased by the amount of any indebtedness

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

existing additional amounts credited by the company to the contract. A cash surrender benefit

may not be less than the minimum nonforfeiture amount at that time. The death benefit under

the contracts must at least equal the cash surrender benefit.
N.D. Cent. Code § 26.1-36-01.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-01.1
26.1-36-01.1. Scope - Accident and health insurance policy mandates
Status: in_force

26.1-36-01.1. Scope - Accident and health insurance policy mandates

Unless expressly provided otherwise, an accident and health insurance policy health

coverage mandate under this chapter does not apply to an accident and health insurance policy

that is a high-deductible health plan under 26 U.S.C. 223 if the mandate would cause the policy

to fail to qualify as a high-deductible health plan under this federal law.