N.D. Cent. Code § 26.1-38.1-06 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-06
26.1-38.1-06. Assessments
Status: in_force

26.1-38.1-06. Assessments

1. For the purpose of providing the funds necessary to carry out the powers and duties of

the association, the board of directors shall assess the member insurers, separately

for each account, at such time and for such amounts as the board finds necessary.

Assessments must be due not less than thirty days after prior written notice to the

member insurers and must accrue interest at eighteen percent per annum on and after

the due date.

2. There must be two classes of assessment, as follows:

a. Class A assessments must be authorized and called for the purpose of meeting

administrative and legal costs and other expenses. Class A assessments may be

authorized and called whether or not related to a particular impaired or insolvent

insurer.

b. Class B assessments must be authorized and called to the extent necessary to

carry out the powers and duties of the association under section 26.1-38.1-05

with regard to an impaired or insolvent insurer.

3. The amount of any class A assessment must be determined at the discretion of the

board of directors and must be authorized and called on a non-pro rata basis.

4. The amount of any class B assessment, except for assessments related to long-term

care insurance, must be allocated for assessment purposes between the accounts and

among the subaccounts of the life insurance and annuity account, pursuant to an

allocation formula which may be based on the premiums or reserves of the impaired or

insolvent insurer or any other standard deemed by the board in its sole discretion as

being fair and reasonable under the circumstances.

5. The amount of the class B assessment for long-term care insurance written by the

impaired or insolvent insurer must be allocated according to a methodology included in

the plan of operation and approved by the commissioner. The methodology must

provide for fifty percent of the assessment to be allocated to accident and health

member insurers and fifty percent to be allocated to life and annuity member insurers.

6. Class B assessments against member insurers for each account and subaccount must

be in the proportion that the premiums received on business in this state by each

assessed member insurer on policies or contracts covered by each account for the

three most recent calendar years for which information is available preceding the year

in which the member insurer became insolvent or, in the case of an assessment with

respect to an impaired insurer, the three most recent calendar years for which

information is available preceding the year in which the member insurer became

impaired, bears to such premiums received on business in this state for such calendar

years by all assessed member insurers.

7. Assessments for funds to meet the requirements of the association with respect to an

impaired or insolvent insurer may not be authorized or called until necessary to

implement the purposes of this chapter. Classification of assessments under

subsection 2 and computation of assessments under this section must be made with a

reasonable degree of accuracy, recognizing that exact determinations may not always

be possible. The association shall notify each member insurer of its anticipated

pro rata share of an authorized assessment not yet called within one hundred eighty

days after the assessment is authorized.

8. The association may abate or defer, in whole or in part, the assessment of a member

insurer if, in the opinion of the board, payment of the assessment would endanger the

ability of the member insurer to fulfill its contractual obligations. In the event an

assessment against a member insurer is abated, or deferred in whole or in part, the

amount by which such assessment is abated or deferred may be assessed against the

other member insurers in a manner consistent with the basis for assessments set forth

in this section. Once the conditions that caused a deferral are removed or rectified, the

member insurer shall pay all assessments that were deferred pursuant to a repayment

plan approved by the association.

9. a. Subject to subdivision b, the total of all assessments authorized by the

association with respect to a member insurer for each subaccount of the life

insurance and annuity account and for the health account may not in any one

calendar year exceed two percent of that member insurer's average annual

premiums received in this state on the policies and contracts covered by the

subaccount or account during the three calendar years preceding the year in

which the member insurer became an impaired or insolvent insurer.

b. If two or more assessments are authorized in one calendar year with respect to

member insurers that become impaired or insolvent in different calendar years,

the average annual premiums for purposes of the aggregate assessment

percentage limitation referenced in subdivision a must be equal and limited to the

higher of the three-year average annual premiums for the applicable subaccount

or account as calculated pursuant to this section.

c. If the maximum assessment, together with the other assets of the association in

an account, does not provide in one year in either account an amount sufficient to

carry out the responsibilities of the association, the necessary additional funds

must be assessed as soon after as permitted under this chapter.

10. The board may provide in the plan of operation a method of allocating funds among

claims, whether relating to one or more impaired or insolvent insurers, when the

maximum assessment will be insufficient to cover anticipated claims.

11. If the maximum assessment for any subaccount of the life and annuity account in any

one year does not provide an amount sufficient to carry out the responsibilities of the

association, then pursuant to subsection 4, the board shall assess the other

subaccounts of the life and annuity account for the necessary additional amount,

subject to the maximum stated in subsection 9.

12. The board may, by an equitable method as established in the plan of operation, refund

to member insurers, in proportion to the contribution of each member insurer to that

account, the amount by which the assets of the account exceed the amount the board

finds is necessary to carry out during the coming year the obligations of the

association with regard to that account, including assets accruing from assignment,

subrogation, net realized gains, and income from investments. A reasonable amount

may be retained in any account to provide funds for the continuing expenses of the

association and for future claims.

13. It is proper for any member insurer, in determining its premium rates and policy owner

dividends as to any kind of insurance or health maintenance organization business

within the scope of this chapter, to consider the amount reasonably necessary to meet

its assessment obligations under this chapter.

14. The association shall issue to each member insurer paying an assessment under this

chapter, other than a class A assessment, a certificate of contribution, in a form

prescribed by the commissioner, for the amount of the assessment so paid. All

outstanding certificates must be of equal dignity and priority without reference to

amounts or dates of issue. A certificate of contribution may be shown by the member

insurer in its financial statement as an asset in such form and for such amount, if any,

and period of time as the commissioner may approve.

15. a. A member insurer that wishes to protest all or part of an assessment shall pay

when due the full amount of the assessment as set forth in the notice provided by

the association. The payment must be available to meet association obligations

during the pendency of the protest or any subsequent appeal. Payment must be

accompanied by a statement in writing that the payment is made under protest

and must set forth a brief statement of the grounds for the protest.

b. Within sixty days following the payment of an assessment under protest by a

member insurer, the association shall notify the member insurer in writing of its

determination with respect to the protest unless the association notifies the

member insurer that additional time is required to resolve the issues raised by the

protest.

c. Within thirty days after a final decision was made, the association shall notify the

protesting member insurer in writing of that final decision. Within sixty days of

receipt of notice of the final decision, the protesting member insurer may appeal

that final action to the commissioner.

d. In the alternative to rendering a final decision with respect to a protest based on a

question regarding the assessment base, the association may refer protests to

the commissioner for a final decision, with or without a recommendation from the

association.

e. If the protest or appeal on the assessment is upheld, the amount paid in error or

excess must be returned to the member insurer. Interest on a refund due a

protesting member insurer shall be paid at the rate actually earned by the

association.

16. The association may request information of member insurers in order to aid in the

exercise of its power under this section and member insurers shall comply promptly

with a request.
N.D. Cent. Code § 26.1-15.1-19 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-19
26.1-15.1-19. The benefit contract
Status: in_force

26.1-15.1-19. The benefit contract

1. Every society authorized to do business in this state shall issue to each owner of a

benefit contract a certificate specifying the amount of benefits provided. The certificate,

together with any riders or endorsements attached thereto, the laws of the society, the

application for membership, the application for insurance and declaration of

insurability, if any, signed by the applicant, and all amendments to each, constitute the

benefit contract, as of the date of issuance, between the society and the owner, and

the certificate must so state. A copy of the application for insurance and declaration of

insurability, if any, must be endorsed upon or attached to the certificate. All statements

on the application must be representations and not warranties. Any waiver of this

provision is void.

2. Any changes, additions, or amendments to the laws of the society duly made or

enacted subsequent to the issuance of the certificate are binding upon the owner and

the beneficiaries and govern and control the benefit contract in all respects the same

as though the changes, additions, or amendments had been made prior to and were in

force at the time of the application for insurance, except that no change, addition, or

amendment destroys or diminishes benefits that the society contracted to give the

owner as of the date of issuance.

3. Any person upon whose life a benefit contract is issued prior to attaining the age of

majority is bound by the terms of the application and certificate and by all the laws and

rules of the society to the same extent as though the age of majority had been attained

at the time of application.

4. A society shall provide in its laws that if its reserves as to all or any class of certificates

become impaired its board of directors or corresponding body may require that there

must be paid by the owner to the society the amount of the owner's equitable

proportion of the deficiency as ascertained by its board. If the payment is not made,

either the proportionate amount must stand as an indebtedness against the certificate

and draw interest not to exceed the rate specified for certificate loans under the

certificates or the owner may accept a proportionate reduction in benefits under the

certificate, either alone or in combination with an indebtedness against the certificate.

The society may specify the manner of the election and which alternative is to be

presumed if the member makes no election.

5. Copies of any of the documents mentioned in this section, certified by the secretary or

corresponding officer of the society, are prima facie evidence of their terms and

conditions.

6. No certificate may be delivered or issued for delivery in this state unless a copy of the

form has been filed with and approved by the commissioner in the manner provided for

like policies issued by life insurers in this state. Every life, accident, health, or disability

insurance certificate and every annuity certificate issued after December 31, 1988,

must meet the standard contract provision requirements not inconsistent with this

chapter for like policies issued by life insurers in this state, except that a society may

provide for a grace period for payment of premiums of one full month in its certificates.

The certificates must also contain a provision stating the amount of premiums which is

payable under the certificate and a provision reciting or setting forth the substance of

any sections of the laws or rules of the society in force at the time of issuance of the

certificate which, if violated, will result in the termination or reduction of benefits

payable under the certificate. If the laws of the society provide for expulsion or

suspension of a member, the certificate must also contain a provision that any member

so expelled or suspended, except for nonpayment of a premium or within the

contestable period for material misrepresentation in the application for membership or

insurance, has the privilege of maintaining the certificate in force by continuing

payment of the required premium.

7. Benefit contracts issued on the lives of persons below the minimum age for adult

membership may provide for transfer of control or ownership to the insured at an age

specified in the certificate. A society may require approval of an application for

membership in order to effect this transfer and may provide in all other respects for the

regulation, government, and control of the certificates and all rights, obligations, and

liabilities incident thereto. Ownership rights prior to transfer of control or ownership

must be specified in the certificate.

8. A society may specify the terms and conditions on which benefit contracts may be

assigned.
N.D. Cent. Code § 26.1-36-31 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-31
26.1-36-31. Medicare supplement policies - Definitions
Status: repealed

26.1-36-31. Medicare supplement policies - Definitions

Repealed by S.L. 1991, ch. 304, § 14.
N.D. Cent. Code § 26.1-26-31.4 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.4
26.1-26-31.4. Report of compliance
Status: repealed

26.1-26-31.4. Report of compliance

Repealed by S.L. 2009, ch. 252, § 7.
N.D. Cent. Code § 26.1-37-09 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-09
26.1-37-09. Applicability of credit life and health policy simplification standards
Status: in_force

26.1-37-09. Applicability of credit life and health policy simplification standards

All individual and group credit life insurance and credit accident and health insurance

policies and insurance certificates must comply with sections 26.1-33-29 through 26.1-33-32

and 26.1-36-13 through 26.1-36-16, respectively.
N.D. Cent. Code § 26.1-12.2-15 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-15
26.1-12.2-15. Rules
Status: in_force

26.1-12.2-15. Rules

The commissioner may adopt rules to administer and enforce this chapter.
N.D. Cent. Code § 26.1-17.1-16 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-16
26.1-17.1-16. Contracts with providers
Status: in_force

26.1-17.1-16. Contracts with providers

All contracts with providers or with entities subcontracting for the provision of limited health

services to enrollees on a prepayment or other basis must contain or must be construed to

contain the following terms and conditions:

1. In the event the prepaid limited health service organization fails to pay for limited

health services for any reason whatsoever, including insolvency or breach of this

contract, the enrollees are not liable to the provider for any sums owed to the provider

under this contract.

2. No provider, agent, trustee, or assignee thereof may maintain an action at law or

attempt to collect from the enrollee sums owed to the provider by the prepaid limited

health service organization.

3. These provisions do not prohibit collection of uncovered charges consented to by

enrollees or collection of copayments from enrollees.

4. These provisions survive the termination of this contract, regardless of the reason

giving rise to termination.

5. Termination of this contract does not release the provider from completing procedures

in progress on enrollees then receiving treatment for a specific condition for a period

not to exceed sixty days, at the same schedule of copayment or other applicable

charge in effect upon the effective date of termination of this contract.

6. Any amendment to these foregoing provisions of this contract must be submitted to

and be approved by the commissioner prior to becoming effective.
N.D. Cent. Code § 26.1-10.3-02 — ND Code / Title 26.1 / Chapter 26.1-10.3 / Section 26.1-10.3-02
26.1-10.3-02. Disclosure requirement
Status: in_force

26.1-10.3-02. Disclosure requirement

1. An insurer, or the insurance group of which the insurer is a member, no later than June

first of each calendar year, shall submit to the commissioner a corporate governance

annual disclosure that contains the information described in subsection 2 of section
N.D. Cent. Code § 26.1-45-05 — ND Code / Title 26.1 / Chapter 26.1-45 / Section 26.1-45-05
26.1-45-05. Cancellation - Nonrenewal - Termination
Status: in_force

26.1-45-05. Cancellation - Nonrenewal - Termination

No long-term care insurance policy may:

1. Be canceled, nonrenewed, or otherwise terminated on the grounds of the age or the

deterioration of the mental or physical health of the insured individual or certificate

holder.

2. Contain a provision establishing a new waiting period in the event existing coverage is

converted to or replaced by a new or other form within the same company, except with

respect to an increase in benefits voluntarily selected by the insured individual or

group policyholder.

3. Provide coverage for skilled nursing care only or provide significantly more coverage

for skilled care in a facility than coverage for lower levels of care.
N.D. Cent. Code § 26.1-31.1-01 — ND Code / Title 26.1 / Chapter 26.1-31.1 / Section 26.1-31.1-01
26.1-31.1-01. Definitions
Status: in_force

26.1-31.1-01. Definitions

As used in this chapter:

1. "Actuary" means a person who is a member in good standing of the American

academy of actuaries.

2. "Controlling person" means any person, firm, association, corporation, or limited

liability company who directly or indirectly has the power to direct or cause to be

directed, the management, control, or activities of the reinsurance intermediary.

3. "Insurer" means any person, firm, association, or corporation duly licensed in this state

pursuant to the applicable provisions of the insurance law as an insurer.

4. "Licensed producer" means an insurance producer or reinsurance intermediary

licensed pursuant to the applicable provision of this title.

5. "Qualified United States financial institution" means an institution that:

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

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

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

authorities having regulatory authority over banks and trust companies; and

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

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

of financial condition and standing considered necessary and appropriate to

regulate the quality of financial institutions whose letters of credit will be

acceptable to the commissioner.

6. "Reinsurance intermediary" means a reinsurance intermediary-broker or a reinsurance

intermediary-manager as these terms are defined in subsections 7 and 8.

7. "Reinsurance intermediary-broker" means any person, other than an officer or

employee of the ceding insurer, firm, association, or corporation who solicits,

negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding

insurer without the authority or power to bind reinsurance on behalf of such insurer.

8. "Reinsurance intermediary-manager" means any person, firm, association,

corporation, or limited liability company who has authority to bind or manages all or

part of the assumed reinsurance business of a reinsurer, including the management of

a separate division, department, or underwriting office, and acts as an agent for the

reinsurer whether known as a reinsurance intermediary-manager, manager, or other

similar term. Notwithstanding this definition, the following persons may not be

considered a reinsurance intermediary-manager, with respect to such reinsurer, for the

purposes of this chapter:

a. An employee of the reinsurer.

b. A United States manager of the United States branch of an alien reinsurer.

c. An underwriting manager which, pursuant to contract, manages all or part of the

reinsurance operations of the reinsurer, is under common control with the

reinsurer and subject to chapter 26.1-10, and whose compensation is not based

on the volume of premiums written.

d. The manager of a group, association, pool, or organization of insurers which

engage in joint underwriting or joint reinsurance and who are subject to

examination by the insurance commissioner of the state in which the manager's

principal business office is located.

9. "Reinsurer" means any person, firm, association, or corporation duly licensed in this

state pursuant to the applicable provisions of this title as an insurer with the authority

to assume reinsurance.

10. "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for

whom the reinsurance intermediary was acting failed to substantially comply with the

provisions of this chapter.
N.D. Cent. Code § 26.1-13-29 — ND Code / Title 26.1 / Chapter 26.1-13 / Section 26.1-13-29
26.1-13-29. Withdrawal from membership
Status: in_force

26.1-13-29. Withdrawal from membership

Any member of a county mutual insurance company may withdraw from membership at any

time while the company continues to transact the business for which the company was

organized if, by withdrawal, the number of members remaining in the company will not be

reduced below the original number of incorporators, or the assets of the company will not be

reduced below the amount at the time of incorporation. In order to withdraw, a member shall

surrender the policy for cancellation and give written notice of withdrawal to the secretary or

designated employee of the company.
N.D. Cent. Code § 26.1-03-10 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-10
26.1-03-10. Publication of abstract of annual statement and certificate of authority
Status: in_force

26.1-03-10. Publication of abstract of annual statement and certificate of authority

An insurance company, at the time it submits its annual statement for filing, shall submit an

abstract of the annual statement for publication on the form prescribed by the commissioner.

The abstract of the annual statement of each company, other than a state or county mutual

insurance company, must be published at least three times in a newspaper of general

circulation and evenly distributed for publication across all newspapers operating in the judicial

district. The abstract of the annual statement of each state or county mutual insurance company

must be published once in a newspaper published in the county in which the company has its

principal place of business, the newspaper to be designated by the members of the company at

their annual meeting. The certificate of authority issued by the commissioner to authorize the

company to do business within this state must be published in connection with the publication of

the abstract of its annual statement. The fees for publication are those provided under section
N.D. Cent. Code § 26.1-03.2-09 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-09
26.1-03.2-09. Supplemental provisions - Rules - Exemption
Status: in_force

26.1-03.2-09. Supplemental provisions - Rules - Exemption

1. The provisions of this chapter are supplemental to any other provisions of the laws of

this state, and do not preclude or limit any other powers or duties of the commissioner

under such laws, including chapter 26.1-06.1.

2. The commissioner may adopt reasonable rules necessary for the implementation of

this chapter.

3. The commissioner may exempt from the application of this chapter a domestic health

organization that:

a. Writes direct business only in this state;

b. Assumes no reinsurance in excess of five percent of direct premium written; and

c. Writes direct annual premiums for comprehensive medical business of less than

an amount determined by the commissioner; or

d. Is a limited health service organization that covers less than a number of lives

determined by the commissioner.
N.D. Cent. Code § 26.1-27.1-10 — ND Code / Title 26.1 / Chapter 26.1-27.1 / Section 26.1-27.1-10
26.1-27.1-10. Proceedings by commissioner - Service of process - Procedure
Status: in_force

26.1-27.1-10. Proceedings by commissioner - Service of process - Procedure

The commissioner shall serve process upon any licensee in any action or proceeding

instituted by the commissioner under this chapter by electronic mail to the electronic mail

address maintained in section 26.1-27.1-02 or by United States mail to the licensee at the

licensee's last-known address of record or principal place of business. Service of process under

this section is complete upon electronic mailing or United States mailing.
N.D. Cent. Code § 26.1-39.2-06 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-06
26.1-39.2-06. Notice required
Status: in_force

26.1-39.2-06. Notice required

A written contract, repair estimate, or work order prepared by a residential contractor to

provide goods or services to be paid from the proceeds of a property and casualty insurance

policy must include the following notice of the prohibition contained in section 26.1-39.2-03 in

capitalized fourteen-point type which must be signed by the named insured and sent to the

named insured's insurer before payment of proceeds under the applicable insurance policy:

"IT IS A VIOLATION OF THE INSURANCE LAWS OF NORTH DAKOTA TO REBATE ANY

PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO THE INSURED TO

ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO REPAIR DAMAGED PROPERTY.

REBATE OF A DEDUCTIBLE INCLUDES GRANTING AN ALLOWANCE OR OFFERING A

DISCOUNT AGAINST THE FEES TO BE CHARGED FOR WORK TO BE PERFORMED OR

PAYING THE INSURED HOMEOWNER THE DEDUCTIBLE AMOUNT SET FORTH IN THE

INSURANCE POLICY.

THE INSURED HOMEOWNER IS PERSONALLY RESPONSIBLE FOR PAYMENT OF THE

DEDUCTIBLE. THE INSURANCE FRAUD STATUTES AND NORTH DAKOTA CRIMINAL

STATUTES PROHIBIT THE INSURED HOMEOWNER FROM ACCEPTING FROM A

RESIDENTIAL CONTRACTOR A REBATE OF THE DEDUCTIBLE OR OTHERWISE

ACCEPTING AN ALLOWANCE OR DISCOUNT FROM THE RESIDENTIAL CONTRACTOR TO

COVER THE COST OF THE DEDUCTIBLE. VIOLATIONS MAY BE PUNISHABLE BY CIVIL

OR CRIMINAL PENALTIES."
N.D. Cent. Code § 26.1-26-08 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-08
26.1-26-08. Licensing of partnership, limited liability partnership, corporation, or limited liability company - Notice of change of individuals
Status: repealed

26.1-26-08. Licensing of partnership, limited liability partnership, corporation, or

limited liability company - Notice of change of individuals.

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-25-04 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-04
26.1-25-04. Rate filings
Status: in_force

26.1-25-04. Rate filings

1. Every insurer shall file with the commissioner, except as to inland marine risks which

by general custom of the business are not written according to manual rates or rating

plans, every manual, minimum class rate, rating schedule or rating plan, and every

other rating rule, and every modification of any of the foregoing which it proposes to

use. Every filing must state the proposed effective date thereof and must indicate the

character and extent of the coverage contemplated. When a filing is not accompanied

by the information upon which the insurer supports the filing, and the commissioner

does not have sufficient information to determine whether the filing meets the

requirements of this chapter, the commissioner shall require the insurer to furnish the

information upon which it supports the filing and the waiting period commences as of

the date the information is furnished. Every insurer shall file or incorporate by

reference to material which has been approved by the commissioner, at the same time

as the filing of the rate, all supplementary rating and supporting information to be used

in support of or in conjunction with a rate. The information furnished in support of a

filing may include:

a. The experience or judgment of the insurer or advisory organization making the

filing.

b. Its interpretation of any statistical data upon which it relies.

c. The experience of other insurers or advisory organizations.

d. Any other relevant factors.

A filing and any supporting information is open to public inspection after the filing

becomes effective. Specific inland marine rates on risks specially rated, made by an

advisory organization, must be filed with the commissioner.

2. After reviewing an insurer's filing, the commissioner may require that the insurer's

rates be based upon the insurer's own loss and expense information. If the insurer's

loss or allocated loss adjustment expense information is not actuarially credible, as

determined by the commissioner, the insurer may use or supplement its experience

with information filed with the commissioner by an advisory organization. Insurers

utilizing the services of an advisory organization must provide with their rate filing, at

the request of the commissioner, a description of the rationale for such use, including

its own information and method of utilization of the advisory organization's information.

This chapter does not require any insurer to become a member of or a subscriber to

any advisory organization.

3. The commissioner shall review filings as soon as reasonably possible after they have

been made in order to determine whether they meet the requirements of this chapter.

4. Subject to the exceptions specified in subsections 5 and 6, each filing must be on file

for a waiting period of sixty days before it becomes effective. The period may be

extended by the commissioner for an additional period not to exceed fifteen days if the

commissioner gives written notice within the waiting period to the insurer or advisory

organization which made the filing that the commissioner needs the additional time for

the consideration of the filing. Upon written application by the insurer or advisory

organization, the commissioner may authorize a filing which the commissioner has

reviewed to become effective before the expiration of the waiting period or any

extension thereof. A filing is deemed to meet the requirements of this chapter unless

disapproved by the commissioner within the waiting period or any extension thereof.

5. A filing with respect to a competitive market commercial risk rate filing, a private

passenger automobile rate filing in which the average rate change is less than five

percent, or a homeowner rate filing in which the average rate change is less than five

percent is deemed to meet the requirements of this chapter until such time as the

commissioner reviews the filing and so long thereafter as the filing remains in effect.

Specific inland marine rates on risks specially rated by an advisory organization

become effective when filed and are deemed to meet the requirements of this chapter

until such time as the commissioner reviews the filing and so long thereafter as the

filing remains in effect.

6. An insurer must file notice of a rate change for either a competitive market commercial

risk product, a private passenger automobile rate filing in which the average rate

change is less than five percent, or a homeowner rate filing in which the average rate

change is less than five percent with the commissioner within thirty days after

implementing the rate change. The exemption provided in subsection 5 for a private

passenger automobile or homeowner rate change filing is limited to no more than one

filing per calendar year.

7. The commissioner after notice and hearing may determine by order that a commercial

risk market is noncompetitive. A rate filing for a product in a noncompetitive

commercial risk market is subject to the provisions of this chapter. The commissioner's

order finding that a commercial risk market is noncompetitive expires after two years.

8. Under any rules the commissioner may adopt, the commissioner may, by written order,

suspend or modify the requirement of filing as to any kind of insurance, subdivision, or

combination thereof, or as to classes of risks, the rates for which cannot practicably be

filed before they are used. The orders and rules must be made known to insurers and

advisory organizations affected thereby. The commissioner may make any

examination the commissioner deems advisable to ascertain whether any rates

affected by the order meet the standards set forth in subdivision e of subsection 1 of

section 26.1-25-03.

9. Upon the written application of the insured, stating the insured's reasons therefor, filed

with and approved by the commissioner, a rate in excess of that provided by a filing

otherwise applicable may be used on any specific risk.

10. No insurer may make or issue a contract or policy except in accordance with the filings

that have been approved and are in effect for the insurer as provided in this chapter or

in accordance with subsection 8 or 9.

11. Nothing in this chapter may be construed to require an advisory organization or its

members or its subscribers to immediately refile final rates or premium charges

previously approved by the commissioner. Members or subscribers of an advisory

organization are authorized to continue to use insurance rates or premium charges

approved before July 1, 1991, or decreases from those rates or premium charges filed

by the advisory organization and subsequently approved after July 1, 1991.
N.D. Cent. Code § 26.1-06.1-47 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-47
26.1-06.1-47. Disposition of records during and after termination of liquidation
Status: in_force

26.1-06.1-47. Disposition of records during and after termination of liquidation

Whenever it appears to the commissioner that the records of any liquidated insurer or any

insurer in the process of liquidation are no longer useful, the commissioner may recommend to

the court and the court direct which records should be retained for future reference and which

records should be destroyed.
N.D. Cent. Code § 26.1-55-05 — ND Code / Title 26.1 / Chapter 26.1-55 / Section 26.1-55-05
26.1-55-05. Unfair trade practices - Liability limitation
Status: in_force

26.1-55-05. Unfair trade practices - Liability limitation

Failure to meet any requirement of this chapter is a violation of chapter 26.1-04. This

chapter does not create a private cause of action for violation of this chapter. Once an insurer

submits unclaimed life insurance benefits or unclaimed retained asset accounts, plus any

applicable accrued interests, to the state abandoned property office in compliance with this

chapter, the insurer is relieved and indemnified from additional liability to any person relating to

the proceeds submitted. This indemnification from liability is in addition to any other protections

provided by law.
N.D. Cent. Code § 26.1-03.1-04 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-04
26.1-03.1-04. Regulatory action level event
Status: in_force

26.1-03.1-04. Regulatory action level event

1. "Regulatory action level event" means, with respect to any insurer, any of the following

events:

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

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

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

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

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

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

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

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

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

the insurer's challenge;

d. The failure of the insurer to file a risk-based capital report by the filing date,

unless the insurer has provided an explanation for the failure that is satisfactory

to the commissioner and has cured the failure within ten days after the filing date;

e. The failure of the insurer to submit a risk-based capital plan to the commissioner

within the time period set forth in subsection 3 of section 26.1-03.1-03;

f. Notification by the commissioner to the insurer that:

(1) The risk-based capital plan or revised risk-based capital plan submitted by

the insurer, in the judgment of the commissioner, is unsatisfactory; and

(2) The notification constitutes a regulatory action level event with respect to the

insurer, provided the insurer has not challenged the determination under

section 26.1-03.1-07;

g. If, under section 26.1-03.1-07, the insurer challenges a determination by the

commissioner under subdivision f, the notification by the commissioner to the

insurer that, after a hearing, the commissioner has rejected the challenge;

h. Notification by the commissioner to the insurer that the insurer has failed to

adhere to its risk-based capital plan or revised risk-based capital plan, but only if

the failure has a substantial adverse effect on the ability of the insurer to eliminate

the company action level event in accordance with its risk-based capital plan or

revised risk-based capital plan and the commissioner has so stated in the

notification, provided the insurer has not challenged the determination under

section 26.1-03.1-07; or

i. If, under section 26.1-03.1-07, the insurer challenges a determination by the

commissioner under subdivision h, the notification by the commissioner to the

insurer that, after a hearing, the commissioner has rejected the challenge.

2. In the event of a regulatory action level event the commissioner shall:

a. Require the insurer to prepare and submit a risk-based capital plan or, if

applicable, a revised risk-based capital plan;

b. Perform such examination or analysis as the commissioner deems necessary of

the assets, liabilities, and operations of the insurer, including a review of its

risk-based capital plan or revised risk-based capital plan; and

c. Subsequent to the examination or analysis, issue an order specifying the

corrective actions as the commissioner determines are required in a corrective

order.

3. In determining corrective actions, the commissioner may take into account any factors

deemed relevant with respect to the insurer based upon the commissioner's

examination or analysis of the assets, liabilities, and operations of the insurer,

including the results of any sensitivity tests undertaken pursuant to the risk-based

capital instructions. The risk-based capital plan or revised risk-based capital plan must

be submitted:

a. Within forty-five days after the occurrence of the regulatory action level event;

b. If the insurer challenges an adjusted risk-based capital report under section

26.1-03.1-07 and the challenge is not judged to be frivolous by the commissioner,

within forty-five days after the notification to the insurer that, after a hearing, the

commissioner has rejected the insurer's challenge; or

c. If the insurer challenges a revised risk-based capital plan under section

26.1-03.1-07 and the challenge is not judged to be frivolous by the commissioner,

within forty-five days after the notification to the insurer that, after a hearing, the

commissioner has rejected the insurer's challenge.

4. The commissioner may retain actuaries and investment experts and other consultants

as the commissioner judges to be necessary to review the insurer's risk-based capital

plan or revised risk-based capital plan, examine or analyze the assets, liabilities, and

operations of the insurer and formulate the corrective order with respect to the insurer.

The fees, costs, and expenses relating to consultants must be borne by the affected

insurer or such other party as directed by the commissioner.
N.D. Cent. Code § 26.1-10-03.1 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-03.1
26.1-10-03.1. Acquisitions involving insurers not otherwise covered
Status: in_force

26.1-10-03.1. Acquisitions involving insurers not otherwise covered

1. For the purpose of this section:

a. "Acquisition" means any agreement, arrangement, or activity the consummation

of which results in a person acquiring directly or indirectly the control of another

person, and includes the acquisition of voting securities, the acquisition of assets,

bulk reinsurance, and mergers.

b. An "involved insurer" includes an insurer which either acquires or is acquired, is

affiliated with an acquirer or acquired, or is the result of a merger.

2. a. Except as exempted in subdivision b, this section applies to any acquisition in

which there is a change in control of an insurer authorized to do business in this

state.

b. This section does not apply to:

(1) A purchase of securities solely for investment purposes so long as the

securities are not used by voting or otherwise to cause or attempt to cause

the substantial lessening of competition in any insurance market in this

state. If a purchase of securities results in a presumption of control under

subsection 2 of section 26.1-10-01, it is not solely for investment purposes

unless the commissioner of the insurer's state of domicile accepts a

disclaimer of control or affirmatively finds that control does not exist and the

disclaimer action or affirmative finding is communicated by the domiciliary

commissioner to the commissioner of this state.

(2) The acquisition of a person by another person when both persons are

neither directly nor through affiliates primarily engaged in the business of

insurance, if preacquisition notification is filed with the commissioner in

accordance with subdivision a of subsection 3 thirty days prior to the

proposed effective date of the acquisition. However, the preacquisition

notification is not required for exclusion from this section if the acquisition

would otherwise be excluded from this section by any other paragraph of

this subdivision.

(3) The acquisition of already affiliated persons.

(4) An acquisition if, as an immediate result of the acquisition:

(a) In no market would the combined market share of the involved

insurers exceed five percent of the total market;

(b) There would be no increase in any market share; or

(c) In no market would the combined market share of the involved

insurers exceed twelve percent of the total market, and in no market

would the market share increase by more than two percent of the total

market.

For the purpose of this paragraph, a "market" means direct written

insurance premium in this state for a line of business as contained in the

annual statement required to be filed by insurers licensed to do business in

this state.

(5) An acquisition for which a preacquisition notification would be required

pursuant to this section due solely to the resulting effect on the ocean

marine insurance line of business.

(6) An acquisition of an insurer whose domiciliary commissioner affirmatively

finds that the insurer is in failing condition, there is a lack of feasible

alternative to improving the insurer's condition, the public benefits of

improving the insurer's condition through the acquisition exceed the public

benefits that would arise from not lessening competition, and the findings

are communicated by the domiciliary commissioner to the commissioner of

this state.

3. An acquisition covered by subsection 2 may be subject to an order pursuant to

subsection 5 unless the acquiring person files a preacquisition notification and the

waiting period has expired. The acquired person may file a preacquisition notification.

The commissioner shall give confidential treatment to information submitted under this

subsection in the same manner as provided in section 26.1-10-07.

a. The preacquisition notification must be in the form and contain the information

prescribed by the national association of insurance commissioners relating to

those markets which, under paragraph 4 of subdivision b of subsection 2, cause

the acquisition not to be exempted from the provisions of this section. The

commissioner may require additional material and information as the

commissioner deems necessary to determine whether the proposed acquisition, if

consummated, would violate the competitive standard of subsection 4. The

required information may include an opinion of an economist as to the

competitive impact of the acquisition in this state accompanied by a summary of

the education and experience of such person indicating that person's ability to

render an informed opinion.

b. The waiting period required begins on the date of receipt of the commissioner of

a preacquisition notification and ends on the earlier of the thirtieth day after the

date of its receipt, or termination of the waiting period by the commissioner. Prior

to the end of the waiting period, the commissioner on a one-time basis may

require the submission of additional needed information relevant to the proposed

acquisition, in the event the waiting period ends on the earlier of the thirtieth day

after receipt of the additional information by the commissioner or termination of

the waiting period by the commissioner.

4. a. The commissioner may enter an order under subdivision a of subsection 5 with

respect to an acquisition if there is substantial evidence that the effect of the

acquisition may be substantially to lessen competition in any line of insurance in

this state or tend to create a monopoly therein or if the insurer fails to file

adequate information in compliance with subsection 3.

b. In determining whether a proposed acquisition would violate the competitive

standard of subdivision a, the commissioner shall consider the following:

(1) Any acquisition covered under subsection 2 involving two or more insurers

competing in the same market is prima facie evidence of violation of the

competitive standards:

(a) If the market is highly concentrated and the involved insurers possess

the following shares of the market:

Insurer A Insurer B

4% 4% or more

10% 2% or more

15% 1% or more

(b) Or, if the market is not highly concentrated and the involved insurers

possess the following shares of the market:

Insurer A Insurer B

5% 5% or more

10% 4% or more

15% 3% or more

19% 1% or more

A highly concentrated market is one in which the share of the four

largest insurers is seventy-five percent or more of the market.

Percentages not shown in the tables are interpolated proportionately

to the percentages that are shown. If more than two insurers are

involved, exceeding the total of the two columns in the table is prima

facie evidence of violation of the competitive standard in subdivision a.

For the purpose of this paragraph, the insurer with the largest share of

the market must be deemed to be insurer A.

(2) There is a significant trend toward increased concentration when the

aggregate market share of any grouping of the largest insurers in the

market, from the two largest to the eight largest, has increased by seven

percent or more of the market over a period of time extending from any base

year five to ten years prior to the acquisition up to the time of the acquisition.

Any acquisition or merger covered under subsection 2 involving two or more

insurers competing in the same market is prima facie evidence of violation

of the competitive standard in subdivision a if:

(a) There is a significant trend toward increased concentration in the

market;

(b) One of the insurers involved is one of the insurance companies in a

grouping of large insurers showing the requisite increase in the market

share; and

(c) Another involved insurer's market is two percent or more.

(3) For the purposes of this subdivision:

(a) The term "insurer" includes any company or group of companies

under common management, ownership, or control.

(b) The term "market" means the relevant product and geographical

markets. In determining the relevant product and geographical

markets, the commissioner shall give due consideration to, among

other things, the definitions or guidelines, if any, promulgated by the

national association of insurance commissioners and to information, if

any, submitted by parties to the acquisition. In the absence of

sufficient information to the contrary, the relevant product market is

assumed to be the direct written insurance premium for a line of

business, such line being that used in the annual statement required

to be filed by insurers doing business in this state, and the relevant

geographical market is assumed to be this state.

(c) The burden of showing prima facie evidence of violation of the

competitive standard rests upon the commissioner.

(4) Even though an acquisition is not prima facie violative of the competitive

standard under paragraphs 1 and 2, the commissioner may establish the

requisite anticompetitive effect based upon other substantial evidence. Even

though an acquisition is prima facie violative of the competitive standard

under paragraphs 1 and 2, a party may establish the absence of the

requisite anticompetitive effect based upon other substantial evidence.

Relevant factors in making a determination under this paragraph include the

following: market shares, volatility of ranking of market leaders, number of

competitors, concentration, trend of concentration in the industry, and ease

of entry into and exit from the market.

c. An order may not be entered under subdivision a of subsection 5 if:

(1) The acquisition will yield substantial economies of scale or economies in

resource utilization that cannot be feasibly achieved in any other way, and

the public benefits which would arise from such economies exceed the

public benefits which would arise from not lessening competition; or

(2) The acquisition will substantially increase the availability of insurance, and

the public benefits of such increase exceed the public benefits which would

arise from not lessening competition.

5. a. If an acquisition violates the standards of this section, the commissioner may

enter an order:

(1) Requiring an involved insurer to cease and desist from doing business in

this state with respect to the line or lines of insurance involved in the

violation; or

(2) Denying the application of an acquired or acquiring insurer for a license to

do business in this state.

b. The order may not be entered unless:

(1) There is a hearing;

(2) Notice of the hearing is issued prior to the end of the waiting period and not

less than fifteen days prior to the hearing; and

(3) The hearing is concluded and the order is issued no later than sixty days

after the date of the filing of the preacquisition notification with the

commissioner. Every order must be accompanied by a written decision of

the commissioner setting forth findings of fact and conclusions of law.

c. An order pursuant to this subsection does not apply if the acquisition is not

consummated.

d. Any person who violates a cease and desist order of the commissioner under this

subsection and while the order is in effect, after notice and hearing and upon

order of the commissioner, may be subject at the discretion of the commissioner

to any one or both of the following:

(1) A monetary penalty of not more than ten thousand dollars for every day of

violation.

(2) Suspension or revocation of the person's license.

e. Any insurer or other person who fails to make any filing required by this section

and who also fails to demonstrate a good-faith effort to comply with any such

filing requirement is subject to a fine of not more than fifty thousand dollars.

f. Subsections 2 and 3 of section 26.1-10-10 and section 26.1-10-12 do not apply to

acquisitions covered under subsection 2.
N.D. Cent. Code § 26.1-12.1-01 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-01
26.1-12.1-01. Definitions
Status: in_force

26.1-12.1-01. Definitions

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

1. "Commissioner" means the insurance commissioner.

2. "Domestic mutual insurance company" or "mutual insurance company" means a

mutual insurance company incorporated under the laws of this state pursuant to

chapter 26.1-12 or other prior provisions of this title.

3. "Domestic mutual insurance holding company" or "mutual insurance holding company"

means a company formed under section 26.1-12.1-02.

4. "Eligible member" means a policyholder whose policy is in force as of the record date

or member as defined under the bylaws or articles of incorporation of the reorganizing

insurer. Unless otherwise provided in the reorganization plan, a person insured under

a certificate issued under a group policy is not an eligible member.

5. "Foreign mutual insurance company" means a mutual insurance company

incorporated under the laws of another state.

6. "Foreign mutual insurance holding company" means a company formed under

provisions of the laws of another state similar to those contained in this chapter.

7. "Membership interest" means all interests of eligible members of the reorganizing

insurer, including rights to vote and to participate in any distribution of surplus, whether

or not incident to the company's liquidation. It does not include the contractual rights

remaining with the reorganized insurance company.

8. "Plan of reorganization" means a plan to engage or participate in a reorganization

subject to this chapter.

9. "Policy" means a policy or contract of insurance issued by a mutual insurance

company, including an annuity contract.

10. "Record date" means the date the reorganizing insurer's board of directors adopts a

plan of reorganization or some other date specified as the record date in the plan of

reorganization and approved by the commissioner.

11. "Reorganization" means any plan or transaction described in section 26.1-12.1-02,

26.1-12.1-03, 26.1-12.1-15, 26.1-12.1-16, or 26.1-12.1-17, or any change in the

reorganized insurer's articles of incorporation or bylaws which is a material change to

the plan of reorganization filed and approved by the commissioner affecting the ability

of the reorganizing insurer to meet the standards described in section 26.1-12.1-06.

12. "Reorganized insurance company" means a mutual insurance company that has

completed a reorganization to a stock company that is subject to this chapter. A

domestic or foreign mutual insurance company that has completed a reorganization to

a stock company may retain the word "mutual" in its name so long as it is clearly

identified with its name that it is a stock insurance subsidiary of a domestic or foreign

mutual insurance holding company.

13. "Reorganizing insurer" means a mutual insurance company, whether domestic or

foreign, seeking to participate, or participating, in a merger or other reorganization as

defined in this chapter.
N.D. Cent. Code § 26.1-36.6-03 — ND Code / Title 26.1 / Chapter 26.1-36.6 / Section 26.1-36.6-03
26.1-36.6-03. Self-insurance health plans - Requirements
Status: in_force

26.1-36.6-03. Self-insurance health plans - Requirements

1. The following policy provisions apply to a self-insurance health plan or to the

administrative services only or third-party administrator, and are subject to the

jurisdiction of the commissioner: sections 26.1-36-03, 26.1-36-03.1, 26.1-36-05,

26.1-36-10, 26.1-36-12, 26.1-36-12.4, 26.1-36-12.6, 26.1-36-13, 26.1-36-14,

26.1-36-17, 26.1-36-18, 26.1-36-19, 26.1-36-23, 26.1-36-29, 26.1-36-37.1, 26.1-36-38,

26.1-36-39, 26.1-36-41, 26.1-36-44, and 26.1-36-46.

2. The following health benefit provisions applicable to a group accident and health

insurance policy under chapter 26.1-36 apply to a self-insurance health plan and are

subject to the jurisdiction of the commissioner: sections 26.1-36-06, 26.1-36-06.1,

26.1-36-07, 26.1-36-08, 26.1-36-08.1, 26.1-36-09, 26.1-36-09.1, 26.1-36-09.2,

26.1-36-09.3, 26.1-36-09.5, 26.1-36-09.6, 26.1-36-09.7, 26.1-36-09.8, 26.1-36-09.9,

26.1-36-09.10, 26.1-36-09.11, 26.1-36-09.12, 26.1-36-09.13, 26.1-36-09.14,

26.1-36-09.15, 26.1-36-11, 26.1-36-12.2, 26.1-36-20, 26.1-36-21, 26.1-36-22,

26.1-36-23.1, and 26.1-36-43. Section 26.1-36-09.17 applies to a self-insurance health

plan and is subject to the jurisdiction of the commissioner.
N.D. Cent. Code § 26.1-12.1-16 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-16
26.1-12.1-16. Existing domestic mutual insurance holding company - Reorganization
Status: in_force

26.1-12.1-16. Existing domestic mutual insurance holding company - Reorganization

An existing domestic mutual insurance holding company, with the prior approval of the

commissioner pursuant to, and under the provisions of section 26.1-12.1-06, may:

1. Acquire direct or indirect ownership of a foreign mutual insurance company as a

reorganizing insurer in compliance with the laws of its state of domicile; and

2. Grant membership interest and equity rights in the domestic mutual insurance holding

company to eligible members of a foreign mutual insurance company as a

reorganizing insurer that merges with a direct or indirect domestic or foreign subsidiary

of the domestic mutual insurance holding company, or is otherwise acquired by the

domestic mutual insurance holding company.

The commissioner shall consider the fairness of the terms and conditions of the transaction,

whether the interests of the eligible members of the domestic mutual insurance holding

company that is a party to the transaction are protected in accordance with this chapter. A plan

of reorganization under this section must be approved by the eligible members of the domestic

mutual insurance holding company in accordance with subsection 2 of section 26.1-12.1-09.
N.D. Cent. Code § 26.1-57-05 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-05
26.1-57-05. Disclosures
Status: in_force

26.1-57-05. Disclosures

A guaranteed asset protection waiver must disclose, as applicable, in writing and in clear,

understandable language that is easy to read, the following:

1. Neither the extension of credit, the terms of the credit, nor the terms of the related

motor vehicle sale or lease, may be conditioned upon the purchase of the guaranteed

asset protection waiver.

2. The name and address of the initial creditor and the borrower at the time of sale, and

the identity of any administrator if different from the creditor.

3. The purchase price and the terms of the guaranteed asset protection waiver, including

the requirements for protection, conditions, or exclusions associated with the

guaranteed asset protection waiver.

4. The borrower may cancel the guaranteed asset protection waiver within a free-look

period as specified in the waiver, and is entitled to a full refund of the purchase price, if

no benefits have been provided.

5. The procedure the borrower shall follow, if any, to obtain guaranteed asset protection

waiver benefits under the terms and conditions of the waiver, including a telephone

number and address at which the borrower may apply for waiver benefits.

6. The procedure for canceling the guaranteed asset protection waiver and for requesting

any refund due.

7. To receive any refund due in the event of a borrower's cancellation of the guaranteed

asset protection waiver agreement or early termination of the finance agreement after

the free-look period of the guaranteed asset protection waiver, the borrower, in

accordance with terms of the waiver, shall provide a written request to cancel to the

creditor, administrator, or such other party. If the request to cancel is a result of the

early termination of the finance agreement the borrower shall provide the written

request to cancel within ninety days of the occurrence of the event terminating the

finance agreement.

8. The methodology for calculating any refund of the unearned purchase price of the

guaranteed asset protection waiver due, in the event of cancellation of the guaranteed

asset protection waiver or early termination of the finance agreement.
N.D. Cent. Code § 26.1-26-32 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-32
26.1-26-32. Renewal of appointments and licenses - Annual fee
Status: in_force

26.1-26-32. Renewal of appointments and licenses - Annual fee

An appointment of an insurance producer and the license of a surplus lines insurance

producer or insurance consultant terminates upon failure to pay the prescribed annual renewal

fees before May first.
N.D. Cent. Code § 26.1-40-04 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-04
26.1-40-04. Statement of reason for cancellation
Status: in_force

26.1-40-04. Statement of reason for cancellation

A notice of cancellation for nonpayment of premium must include or be accompanied by a

statement of the reason for cancellation. Any other notice of cancellation must state or be

accompanied by either a statement of the reason for cancellation, or a statement that upon

written request of the named insured, the insurer will specify in writing the reason for

cancellation. The written request must be mailed or delivered to the insurer at least ten days

prior to the effective date of cancellation. The insurer shall mail or deliver the reason to the

named insured within ten days after receipt of the written request. Failure to comply with the

notice of cancellation provisions of section 26.1-40-03 or failure to furnish reasons for

cancellation when required or requested is sufficient cause for the commissioner to cancel,

revoke, or refuse to renew that company's certificate of authority to do business in this state.
N.D. Cent. Code § 26.1-36.3-10 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-10
26.1-36.3-10. Waiver of certain state laws
Status: repealed

26.1-36.3-10. Waiver of certain state laws

Repealed by S.L. 2013, ch. 236, § 6.
N.D. Cent. Code § 26.1-16-04 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-04
26.1-16-04. Organization of society - Minimum number of members
Status: in_force

26.1-16-04. Organization of society - Minimum number of members

Any number of persons, not less than five, all of whom are residents of this state, may form

a benevolent society by complying with the applicable provisions of this chapter.
N.D. Cent. Code § 26.1-12-10 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-10
26.1-12-10. Mutual life insurance company - Amount of subscribed insurance required - Surplus required
Status: in_force

26.1-12-10. Mutual life insurance company - Amount of subscribed insurance

required - Surplus required.

A mutual life insurance company may not issue a policy until not less than two hundred

thousand dollars of insurance in not less than two hundred separate risks have been subscribed

for and entered on its books. The commissioner may not issue a certificate of authority for the

transaction of business to the company unless it has a surplus of assets over all liabilities of at

least one million dollars. A domestic mutual life insurance company shall maintain surplus of at

least this amount. However, for any company doing business only in this state, if the minimum

asset and surplus requirements required by this section are more than the minimum

requirements required at the time a company was issued its original certificate of authority, the

company shall increase its assets and surplus to a minimum of one hundred thousand dollars.

All other companies shall increase their surplus of assets over all liabilities according to the

schedule set out in subsection 4 of section 26.1-12-08.
N.D. Cent. Code § 26.1-17-08 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-08
26.1-17-08. Corporation not authorized to practice a profession
Status: in_force

26.1-17-08. Corporation not authorized to practice a profession

This chapter does not authorize a health service corporation to engage in the practice of

medicine, dentistry, optometry, or any other profession for which a license or registration is

required.
N.D. Cent. Code § 26.1-26-09 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-09
26.1-26-09. Exceptions to licensing requirements
Status: in_force

26.1-26-09. Exceptions to licensing requirements

1. Nothing in this chapter may be construed to require an insurer to obtain an insurance

producer license. In this section, the term "insurer" does not include an insurer's

officers, directors, employees, subsidiaries, or affiliates.

2. A license as an insurance producer is not required of the following:

a. An officer, director, or employee of an insurer or of an insurance producer,

provided that the officer, director, or employee does not receive any commission

on policies written or sold to insure risks residing, located, or to be performed in

this state and:

(1) The officer, director, or employee's activities are executive, administrative,

managerial, clerical, or a combination of these, and are only indirectly

related to the sale, solicitation, or negotiation of insurance;

(2) The officer, director, or employee's function relates to underwriting, loss

control, inspection, or the processing, adjusting, investigating, or settling of a

claim on a contract of insurance; or

(3) The officer, director, or employee is acting in the capacity of a special agent

or agency supervisor assisting insurance producers when the person's

activities are limited to providing technical advice and assistance to licensed

insurance producers and do not include the sale, solicitation, or negotiation

of insurance.

b. A person who secures and furnishes information for the purpose of group life

insurance, group property and casualty insurance, group annuities, group or

blanket accident and health insurance, or for the purpose of enrolling individuals

under plans or otherwise assisting in administering plans, or performs

administrative services related to mass-marketed property and casualty

insurance, when no commission is paid to the person for the service.

c. An employer or association or its officers, directors, employees, or the trustees of

an employee trust plan, to the extent that the employers, officers, employees,

directors, or trustees are engaged in the administration or operation of a program

of employee benefits for the employer's or association's own employees or the

employees of its subsidiaries or affiliates, which program involves the use of

insurance issued by an insurer, as long as the employers, associations, officers,

directors, employees, or trustees are not in any manner compensated, directly or

indirectly, by the company issuing the contracts.

d. An employee of an insurer or an organization employed by an insurer or an

organization who inspects, rates, or classifies risks or supervises the training of

insurance producers and who is not individually engaged in the sales, solicitation,

or negotiation of insurance.

e. A person whose activities in this state are limited to advertising without the intent

to solicit insurance in this state through communications in printed publications or

other forms of electronic mass media whose distribution is not limited to residents

of the state, provided that the person does not sell, solicit, or negotiate insurance

that would insure risks residing, located, or to be performed in this state.

f. A person who is not a resident of this state who sells, solicits, or negotiates a

contract of insurance for commercial property and casualty risks to an insured

with risks located in more than one state insured under that contract, provided

that that person is otherwise licensed as an insurance producer to sell, solicit, or

negotiate that insurance in the state where the insured maintains its principal

place of business and the contract of insurance insures risks located in that state.

g. A salaried full-time employee who counsels or advises that person's employer

relative to the insurance interests of the employer or of the subsidiaries or

business affiliates of the employer provided that the employee does not sell or

solicit insurance or receive a commission.

h. An employee of an insurer or of an insurance producer who responds to requests

from existing policyholders on existing policies provided that employee is not

directly compensated based on the volume of premiums that may result from

these services and provided that employee does not sell, solicit, or negotiate

insurance.
N.D. Cent. Code § 26.1-33.4-02 — ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-02
26.1-33.4-02. Licensing and bonding requirements
Status: in_force

26.1-33.4-02. Licensing and bonding requirements

1. A person, wherever located, may not act as a provider or broker with an owner or

multiple owners who is a resident of this state without first having obtained a license

from the commissioner. If there is more than one owner on a single policy and the

owners are residents of different states, the life settlement contract must be governed

by the law of the state in which the owner having the largest percentage ownership

resides or, if the owners hold equal ownership, the state of residence of one owner

agreed upon in writing by all owners.

2. Application for a provider or broker license must be made to the commissioner by the

applicant on a form prescribed by the commissioner, and the application must be

accompanied by a fee in an amount established by the commissioner; provided,

however, that the license and renewal fees for a provider license must be reasonable

and that the license and renewal fees for a broker license may not exceed those

established for an insurance producer, as such fees are otherwise provided for in this

title.

3. A life insurance producer who has been duly licensed as a resident insurance

producer with a life line of authority in this state or the producer's home state for at

least one year and is licensed as a nonresident producer in this state is deemed to

meet the licensing requirements of this section and must be permitted to operate as a

broker.

4. Not later than thirty days from the first day of operating as a broker, the life insurance

producer shall notify the commissioner that the broker is acting as a broker on a form

prescribed by the commissioner, and shall pay any applicable fee to be determined by

the commissioner. Notification must include an acknowledgement by the life insurance

producer that the broker will operate as a broker in accordance with this chapter.

5. The insurer that issued the policy that is the subject of a life settlement contract may

not be responsible for any act or omission of a broker, provider, or purchaser arising

out of or in connection with the life settlement transaction, unless the insurer receives

compensation for the placement of a life settlement contract from the provider,

purchaser, or broker in connection with the life settlement contract.

6. An individual licensed as an attorney, certified public accountant, or financial planner

accredited by a nationally recognized accreditation agency, who is retained to

represent the owner, whose compensation is not paid directly or indirectly by the

provider or purchaser, may negotiate life settlement contracts on behalf of the owner

without having to obtain a license as a broker.

7. Licenses may be renewed annually on or before April thirtieth upon payment of the

periodic renewal fee. As specified in subsection 2, the renewal fee for a provider may

not exceed a reasonable fee. Failure to pay the fee within the terms prescribed results

in the automatic revocation of the license requiring periodic renewal. A license issued

after January first is not required to renew until April thirtieth of the following calendar

year.

8. The term of provider license must be equal to that of a domestic stock life insurance

company and the term of a broker license must be equal to that of an insurance

producer license. Licenses requiring periodic renewal may be renewed on or before

April thirtieth upon payment of the periodic renewal fee as specified in subsection 2.

Failure to pay the fees before the expiration of the renewal date results in expiration of

the license. A license issued after January first is not required to be renewed until April

thirtieth of the following calendar year.

9. The applicant shall provide such information as the commissioner may require on

forms prepared by the commissioner. The commissioner, at any time, may require the

applicant to fully disclose the identity of the applicant's stockholders (except

stockholders owning fewer than ten percent of the shares of an applicant whose

shares are publicly traded), partners, officers, and employees, and the commissioner

may refuse to issue the license in the name of any person if not satisfied that any

officer, employee, stockholder, or partner thereof who may materially influence the

applicant's conduct meets the standards of this chapter.

10. A license issued to a partnership, corporation, or other entity authorizes all members,

officers, and designated employees to act as a licensee under the license, if those

individuals are named in the application and any supplements to the application.

11. Upon the filing of an application and the payment of the license fee, the commissioner

shall make an investigation of each applicant and may issue a license if the

commissioner finds that the applicant:

a. If a provider, has provided a detailed plan of operation;

b. Is competent and trustworthy and intends to transact the applicant's business in

good faith;

c. Has a good business reputation and has had experience, training, or education

so as to be qualified in the business for which the license is applied;

d. If the applicant is a legal entity, is formed or organized pursuant to the laws of this

state, or is a foreign legal entity authorized to transact business in this state, or

provides a certificate of good standing from the state of its domicile;

e. Has provided to the commissioner an antifraud plan that meets the requirements

of section 26.1-33.4-12 and includes:

(1) A description of the procedures for detecting and investigating possible

fraudulent acts and procedures for resolving material inconsistencies

between medical records and insurance applications;

(2) A description of the procedures for reporting fraudulent insurance acts to the

commissioner;

(3) A description of the plan for antifraud education and training of the

applicant's underwriters and other personnel; and

(4) A written description or chart outlining the arrangement of the antifraud

personnel who are responsible for the investigation and reporting of possible

fraudulent insurance acts and investigating unresolved material

inconsistencies between medical records and insurance applications; and

f. If a provider or broker, has demonstrated evidence of financial responsibility in a

format prescribed by the commissioner through a surety bond executed and

issued by an insurer authorized to issue surety bonds in this state or through a

deposit of cash, certificates of deposit, or securities or any combination thereof in

the amount of one hundred fifty thousand dollars. The commissioner shall accept,

as evidence of financial responsibility under this subdivision, proof that financial

instruments in accordance with the requirements in this subdivision have been

filed with one or more states in which the applicant is licensed as a provider or

broker. The commissioner may ask for evidence of financial responsibility at any

time the commissioner determines necessary. Any surety bond issued pursuant

to this subdivision must specifically authorize recovery by the commissioner on

behalf of any person in this state which sustained damages as the result of

erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices

by the provider or broker.

12. The commissioner may not issue any license to any nonresident applicant unless a

written designation of an agent for service of process is filed and maintained with the

commissioner or unless the applicant has filed with the commissioner the applicant's

written irrevocable consent that any action against the applicant may be commenced

against the applicant by service of process on the commissioner.

13. Each licensee shall file with the commissioner before March first of each year an

annual statement containing such information as the commissioner by rule may

prescribe.

14. A provider may not use any person to perform the functions of a broker, as provided

under this chapter, unless the person holds a current, valid license as a broker, and as

provided in this section.

15. A broker may not use any person to perform the functions of a provider as defined in

this chapter unless such person holds a current, valid license as a provider and as

provided in this section.

16. A provider or broker shall provide to the commissioner new or revised information

about officers, ten percent or more stockholders, partners, directors, members, or

designated employees within thirty days of the change.

17. An individual licensed as a broker shall complete on a biennial basis fifteen hours of

training related to life settlements and life settlement transactions as required by the

commissioner; provided, however, that a life insurance producer who is operating as a

broker pursuant to this section is not subject to the requirements of this subsection.

Any person failing to meet the requirements of this subsection shall be subject to the

penalties imposed by the commissioner.
N.D. Cent. Code § 26.1-22-04 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-04
26.1-22-04. Investment of fund
Status: in_force

26.1-22-04. Investment of fund

Investment of the fund is under the supervision of the state investment board in accordance

with chapter 21-10.
N.D. Cent. Code § 26.1-02.2-03 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-03
26.1-02.2-03. Information security program
Status: in_force

26.1-02.2-03. Information security program

1. Commensurate with the size and complexity of the licensee, the nature and scope of

the licensee's activities, including the licensee's use of third-party service providers,

and the sensitivity of the nonpublic information used by the licensee or in the

licensee's possession, custody, or control, each licensee shall develop, implement,

and maintain a comprehensive written information security program based on the

licensee's risk assessment that contains administrative, technical, and physical

safeguards for the protection of nonpublic information and the licensee's information

system.

2. A licensee's information security program must be designed to:

a. Protect the security and confidentiality of nonpublic information and the security

of the information system;

b. Protect against any threats or hazards to the security or integrity of nonpublic

information and the information system;

c. Protect against unauthorized access to or use of nonpublic information, and

minimize the likelihood of harm to any consumer; and

d. Define and periodically re-evaluate a schedule for retention of nonpublic

information and a mechanism for destruction if no longer needed.

3. The licensee shall:

a. Designate one or more employees, an affiliate, or an outside vendor designated

to act on behalf of the licensee which is responsible for the information security

program;

b. Identify reasonably foreseeable internal or external threats that could result in

unauthorized access, transmission, disclosure, misuse, alteration, or destruction

of nonpublic information, including the security of information systems and

nonpublic information accessible to, or held by, third-party service providers;

c. Assess the likelihood and potential damage of any threats, taking into

consideration the sensitivity of the nonpublic information;

d. Assess the sufficiency of policies, procedures, information systems, and other

safeguards in place to manage any threats, including consideration of threats in

each relevant area of the licensee's operations, including:

(1) Employee training and management;

(2) Information systems, including network and software design, as well as

information classification, governance, processing, storage, transmission,

and disposal; and

(3) Detecting, preventing, and responding to attacks, intrusions, or other

systems failures; and

e. Implement information safeguards to manage the threats identified in the

licensee's ongoing assessment and assess the effectiveness of the safeguards'

key controls, systems, and procedures on an annual basis.

4. Based on the licensee's risk assessment, the licensee shall:

a. Design the information security program to mitigate the identified risks,

commensurate with the size and complexity of the licensee, the nature and scope

of the licensee's activities, including the licensee's use of third-party service

providers, and the sensitivity of the nonpublic information used by the licensee or

in the licensee's possession, custody, or control.

b. Determine which security measures as provided under this subdivision are

appropriate and implement the security measures:

(1) Place access controls on information systems, including controls to

authenticate and permit access only to an authorized individual to protect

against the unauthorized acquisition of nonpublic information;

(2) Identify and manage the data, personnel, devices, systems, and facilities

that enable the organization to achieve business purposes in accordance

with the business' relative importance to business objectives and the

organization's risk strategy;

(3) Restrict physical access to nonpublic information only to an authorized

individual;

(4) Protect by encryption or other appropriate means, all nonpublic information

while being transmitted over an external network and all nonpublic

information stored on a laptop computer or other portable computing or

storage device or media;

(5) Adopt secure development practices for in-house developed applications

utilized by the licensee;

(6) Modify the information system in accordance with the licensee's information

security program;

(7) Utilize effective controls, which may include multi-factor authentication

procedures for employees accessing nonpublic information;

(8) Regularly test and monitor systems and procedures to detect actual and

attempted attacks on, or intrusions into, information systems;

(9) Include audit trails within the information security program designed to

detect and respond to cybersecurity events and designed to reconstruct

material financial transactions sufficient to support normal operations and

obligations of the licensee;

(10) Implement measures to protect against destruction, loss, or damage of

nonpublic information due to environmental hazards, including fire and water

damage or other catastrophes or technological failures; and

(11) Develop, implement, and maintain procedures for the secure disposal of

nonpublic information in any format.

c. Include cybersecurity risks in the licensee's enterprise risk management process.

d. Stay informed regarding emerging threats or vulnerabilities and use reasonable

security measures if sharing information relative to the character of the sharing

and the type of information shared.

e. Provide cybersecurity awareness training to the licensee's personnel which is

updated as necessary to reflect risks identified by the licensee in the risk

assessment.

5. If the licensee has a board of directors, the board or an appropriate committee of the

board at a minimum shall:

a. Require the licensee's executive management or the licensee's delegates to

develop, implement, and maintain the licensee's information security program.

b. Require the licensee's executive management or the licensee's delegates to

report the following information in writing on an annual basis:

(1) The overall status of the information security program and the licensee's

compliance with the provisions of this chapter; and

(2) Material matters related to the information security program, addressing

issues, including risk assessment, risk management and control decisions,

third-party service provider arrangements, results of testing, cybersecurity

events, or violations, and management's responses and recommendations

for changes in the information security program.

c. If executive management delegates any responsibilities under this section, the

executive management delegates shall oversee the development,

implementation, and maintenance of the licensee's information security program

prepared by the delegate and shall receive a report from the delegate complying

with the requirements of the report to the board of directors.

6. A licensee shall exercise due diligence in selecting its third-party service provider; and

a licensee shall require a third-party service provider to implement appropriate

administrative, technical, and physical measures to protect and secure the information

systems and nonpublic information accessible to, or held by, the third-party service

provider.

7. The licensee shall monitor, evaluate, and adjust, as appropriate, the information

security program consistent with any relevant changes in technology, the sensitivity of

its nonpublic information, internal or external threats to information, and the licensee's

own changing business arrangements, including mergers and acquisitions, alliances

and joint ventures, outsourcing arrangements, and changes to information systems.

8. As part of the licensee's information security program, a licensee shall establish a

written incident response plan designed to promptly respond to, and recover from, any

cybersecurity event that compromises the confidentiality, integrity, or availability of

nonpublic information in the licensee's possession. The incident response plan must

include the licensee's plan to recover the licensee's information systems and restore

continuous functionality of any aspect of the licensee's business or operations.

9. A licensee's incident response plan must address:

(1) The internal process for responding to a cybersecurity event;

(2) The goals of the incident response plan;

(3) The definition of clear roles, responsibilities, and levels of decisionmaking

authority;

(4) External and internal communications and information sharing;

(5) Identification of requirements for the remediation of any identified

weaknesses in information systems and associated controls;

(6) Documentation and reporting regarding cybersecurity events and related

incident response activities; and

(7) The evaluation and revision as necessary of the incident response plan

following a cybersecurity event.

10. Annually, an insurer domiciled in this state shall submit to the commissioner, a written

statement by April fifteenth, certifying the insurer is in compliance with the

requirements set forth in this section. An insurer shall maintain for examination by the

department all records, schedules, and data supporting this certificate for a period of

five years. To the extent an insurer has identified areas, systems, or processes that

require material improvement, updating, or redesign, the insurer shall document the

identification and the remedial efforts planned and underway to address the areas,

systems, or processes. The documentation must be available for inspection by the

commissioner.
N.D. Cent. Code § 26.1-36.1-09 — ND Code / Title 26.1 / Chapter 26.1-36.1 / Section 26.1-36.1-09
26.1-36.1-09. General penalty - License suspension or revocation
Status: in_force

26.1-36.1-09. General penalty - License suspension or revocation

Any person willfully violating any provision of this chapter or order of the commissioner

made in accordance with this chapter is guilty of a class A misdemeanor. The commissioner

may also suspend or revoke the license of an insurer or insurance producer for any such willful

violation.
N.D. Cent. Code § 26.1-57-03 — ND Code / Title 26.1 / Chapter 26.1-57 / Section 26.1-57-03
26.1-57-03. Requirements for offering guaranteed asset protection waivers
Status: in_force

26.1-57-03. Requirements for offering guaranteed asset protection waivers

1. A guaranteed asset protection waiver may be offered, sold, or provided to a borrower

in this state in compliance with this chapter.

2. A guaranteed asset protection waiver may, at the option of the creditor, be sold for a

single payment or may be offered with a monthly or periodic payment option.

3. Notwithstanding any contrary provision of law, any cost to the borrower for a

guaranteed asset protection waiver entered in compliance with the federal Truth in

Lending Act [15 U.S.C. 1601 et seq.], and related implementing regulations, must be

separately stated and is not a finance charge or interest.

4. A dealer shall insure the dealer's guaranteed asset protection waiver obligations under

a contractual liability or other insurance policy issued by an insurer. A creditor, other

than a dealer, may insure the creditor's guaranteed asset protection waiver obligations

under a contractual liability policy or other such policy issued by an insurer. Any such

insurance policy may be obtained directly by a creditor or dealer, or may be procured

by an administrator, to cover a creditor's or dealer's obligations. However, a dealer that

is a lessor on a motor vehicle is not required to insure obligations related to

guaranteed asset protection waivers on that leased vehicle.

5. The guaranteed asset protection waiver remains a part of the finance agreement upon

the assignment, sale, or transfer of that finance agreement by the creditor.

6. Neither the extension of credit, the term of credit, nor the term of the related motor

vehicle sale or lease may be conditioned upon the purchase of a guaranteed asset

protection waiver.

7. A creditor that offers a guaranteed asset protection waiver shall report the sale of, and

forward funds received on all such waivers to the designated party, if any, as

prescribed in any applicable administrative services agreement, contractual liability

policy, other insurance policy, or other specified program documents.

8. Funds received or held by a creditor or administrator and belonging to an insurer,

creditor, or administrator, pursuant to the terms of a written agreement, must be held

by the creditor or administrator in a fiduciary capacity.
N.D. Cent. Code § 26.1-38.1-02 — ND Code / Title 26.1 / Chapter 26.1-38.1 / Section 26.1-38.1-02
26.1-38.1-02. Definitions
Status: in_force

26.1-38.1-02. Definitions

As used in this chapter:

1. "Account" means either of the two accounts created under section 26.1-38.1-03.

2. "Association" means the North Dakota life and health insurance guaranty association

created under section 26.1-38.1-03.

3. "Authorized assessment" or the term "authorized" when used in the context of

assessments means a resolution by the board of directors has been passed under

which an assessment will be called immediately or in the future from member insurers

for a specified amount. An assessment is authorized when the resolution is passed.

4. "Benefit plan" means a specific employee, union, or association of natural persons

benefit plan.

5. "Called assessment" or "called" when used in the context of assessments means that

a notice was issued by the association to member insurers requiring that an authorized

assessment be paid within the time frame set forth within the notice. An authorized

assessment becomes a called assessment when notice is mailed by the association to

member insurers.

6. "Commissioner" means the insurance commissioner of this state.

7. "Contractual obligation" means any obligation under a policy or contract or certificate

under a group policy or contract, or portion thereof for which coverage is provided

under section 26.1-38.1-01.

8. "Covered contract" or "covered policy" means any policy or contract or portion of a

policy or contract for which coverage is provided under this chapter.

9. "Extracontractual claims" include claims relating to bad faith in the payment of claims,

punitive or exemplary damages, or attorney's fees and costs.

10. "Health benefit plan" means any hospital or medical expense policy or certificate, any

health maintenance organization subscriber contract, or any other similar health

contract. The term does not include:

a. Accident only insurance;

b. Credit insurance;

c. Dental only insurance;

d. Vision only insurance;

e. Medicare supplement insurance;

f. Benefits for long-term care, home health care, community-based care, or any

combination of these benefits;

g. Disability income insurance;

h. Coverage for onsite medical clinics; or

i. Specified disease, hospital confinement indemnity, or limited health insurance, if

the types of coverage do not provide coordination of benefits and are provided

under separate policies or certificates.

11. "Impaired insurer" means a member insurer that, after July 1, 1989, is not an insolvent

insurer, and is placed under an order of rehabilitation or conservation by a court of

competent jurisdiction.

12. "Insolvent insurer" means a member insurer which, after July 1, 1989, is placed under

an order of liquidation by a court of competent jurisdiction with a finding of insolvency.

13. "Member insurer" means any insurer or health maintenance organization licensed or

which holds a certificate of authority to transact in this state any kind of insurance or

health maintenance organization business for which coverage is provided under

section 26.1-38.1-01. The term includes any insurer or health maintenance

organization whose license or certificate of authority in this state may have been

suspended, revoked, not renewed, or voluntarily withdrawn, but does not include:

a. A fraternal benefit society;

b. A mandatory state pooling plan;

c. A mutual assessment company or other person that operates on an assessment

basis;

d. An insurance exchange;

e. An organization that has a certificate or license limited to the issuance of

charitable gift annuities under sections 26.1-34.1-01 through 26.1-34.1-07; or

f. Any entity similar to any of the above.

14. "Moody's corporate bond yield average" means the monthly average corporates as

published by Moody's investors service, incorporated, or any successor thereto.

15. "Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner"

mean the person who is identified as the legal owner under the terms of the policy or

contract or who is otherwise vested with legal title to the policy or contract through a

valid assignment completed in accordance with the terms of the policy or contract and

properly recorded as the owner on the books of the member insurer. The terms owner,

contract owner, policyholder, and policy owner do not include persons with a mere

beneficial interest in a policy or contract.

16. "Person" means any individual, corporation, limited liability company, partnership,

association, governmental entity, or voluntary organization.

17. "Plan sponsor" means:

a. The employer in the case of a benefit plan established or maintained by a single

employer;

b. The employee organization in the case of a benefit plan established or

maintained by an employee organization; or

c. In the case of a benefit plan established or maintained by two or more employers

or jointly by one or more employers and one or more employee organizations, the

association, committee, joint board of trustees, or other similar group of

representatives of the parties who establish or maintain the benefit plan.

18. "Premiums" means amounts or considerations, by whatever name called, received on

covered policies or contracts less returned premiums, considerations, and deposits,

and less dividends and experience credits. "Premiums" do not include any amounts or

considerations received for any policies or contracts or for the portions of any policies

or contracts for which coverage is not provided under subsections 2 and 3 of section

26.1-38.1-01 and except that assessable premium shall not be reduced on account of

subdivision c of subsection 3 of section 26.1-38.1-01, relating to interest limitations,

and subsection 3 of section 26.1-38.1-01, relating to limitations with respect to any one

individual, any one participant, and any one policy or contract owner. "Premiums" do

not include:

a. Premiums in excess of five million dollars on any unallocated annuity contract not

issued under a governmental retirement plan established under section 401(k),

403(b), or 457 of the United States Internal Revenue Code; or

b. With respect to multiple nongroup policies of life insurance owned by one owner,

whether the policy or contract owner is an individual, firm, corporation, or other

person, and whether the persons insured are officers, managers, employees, or

other persons, premiums in excess of five million dollars with respect to these

policies or contracts, regardless of the number of policies or contracts held by the

owner.

19. a. "Principal place of business" of a plan sponsor or a person other than a natural

person means the single state in which the natural persons who establish policy

for the direction, control, and coordination of the operations of the entity as a

whole primarily exercise that function, determined by the association in its

reasonable judgment by considering the following factors: the state in which the

primary executive and administrative headquarters of the entity is located; the

state in which the principal office of the chief executive officer of the entity is

located; the state in which the board of directors or similar governing person or

persons of the entity conducts the majority of its meetings; the state in which the

executive or management committee of the board of directors or similar

governing person or persons of the entity conducts the majority of its meetings;

the state from which the management of the overall operations of the entity is

directed; and in the case of a benefit plan sponsored by affiliated companies

comprising a consolidated corporation, the state in which the holding company or

controlling affiliate has its principal place of business as determined using the

above factors. However, in the case of a plan sponsor, if more than fifty percent of

the participants in the benefit plan are employed in a single state, that state is

deemed to be the principal place of business of the plan sponsor.

b. The principal place of business of a plan sponsor of a benefit plan described in

subdivision c of subsection 17 is deemed to be the principal place of business of

the association, committee, joint board of trustees, or other similar group of

representatives of the parties who establish or maintain the benefit plan that, in

lieu of a specific or clear designation of a principal place of business, is deemed

to be the principal place of business of the employer or employee organization

that has the largest investment in the benefit plan in question.

20. "Receivership court" means the court in the insolvent or impaired insurer's state having

jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer.

21. "Resident" means any person to whom a contractual obligation is owed and who

resides in this state on the date of entry of a court order that determines a member

insurer to be an impaired insurer or a court order that determines a member insurer to

be an insolvent insurer, whichever occurs first. A person may be a resident of only one

state, which in the case of a person other than a natural person must be its principal

place of business. Citizens of the United States who are residents of foreign countries,

or residents of United States possessions, territories, or protectorates that do not have

an association similar to the association created under this chapter, are deemed

residents of the state of domicile of the member insurer that issued the policies or

contracts.

22. "State" means a state, the District of Columbia, Puerto Rico, and a United States

possession, territory, or protectorate.

23. "Structured settlement annuity" means an annuity purchased in order to fund periodic

payments for a plaintiff or other claimant in payment for or with respect to personal

injury suffered by the plaintiff or other claimant.

24. "Supplemental contract" means any written agreement entered into for the distribution

of proceeds under a life, health, or annuity policy or a life, health, or annuity contract.

25. "Unallocated annuity contract" means any annuity contract or group annuity certificate

which is not issued to and owned by an individual, except to the extent of any annuity

benefits guaranteed to an individual by an insurer under such contract or certificate.
N.D. Cent. Code § 26.1-02-10 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-10
26.1-02-10. Agent for service of process - Unauthorized company
Status: in_force

26.1-02-10. Agent for service of process - Unauthorized company

Any act of transacting insurance business as set forth in this chapter by any unauthorized

insurance company is an irrevocable appointment by the company, binding upon the company,

its executor or administrator, or successor in interest if a corporation, of the secretary of state or

the secretary's successor in office, as the attorney of the company upon whom may be served

all lawful process in any action or proceeding in any court by the commissioner or by the state

and upon whom may be served any notice, order, pleading, or process in any proceeding before

the commissioner and which arises out of transacting insurance business in this state by the

company. Any act of transacting insurance business in this state by any unauthorized company

signifies its agreement that any lawful process in any court action or proceeding and any notice,

order, pleading, or process in any administrative proceeding before the commissioner so served

is of the same legal force and validity as personal service of process in this state upon the

company.
N.D. Cent. Code § 26.1-30-16 — ND Code / Title 26.1 / Chapter 26.1-30 / Section 26.1-30-16
26.1-30-16. Effect of nonfraudulent breach of warranty in policy
Status: in_force

26.1-30-16. Effect of nonfraudulent breach of warranty in policy

A breach of warranty without fraud exonerates an insurer from the time the breach occurs,

or when a warranty is broken in its inception, prevents the insurance policy from attaching to the

risk.
N.D. Cent. Code § 26.1-25.1-07 — ND Code / Title 26.1 / Chapter 26.1-25.1 / Section 26.1-25.1-07
26.1-25.1-07. Filing
Status: in_force

26.1-25.1-07. Filing

1. An insurer that uses insurance scores to underwrite or rate risks shall file the insurer's

scoring models or other scoring processes with the insurance department. A third party

may file scoring models on behalf of an insurer. A filing that includes insurance scoring

must include loss experience justifying the use of credit information.

2. Any scoring models, scoring processes, and information related to scoring models or

processes filed by or on behalf of an insurer pursuant to subsection 1 is considered a

trade secret.
N.D. Cent. Code § 26.1-15.1-17 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-17
26.1-15.1-17. Beneficiaries
Status: in_force

26.1-15.1-17. Beneficiaries

1. The owner of a benefit contract has the right to change the beneficiary or beneficiaries

in accordance with the laws or rules of the society unless the owner waives this right

by specifically requesting in writing that the beneficiary designation be irrevocable. A

society may, through its laws or rules, limit the scope of beneficiary designations and

shall provide that no revocable beneficiary has or obtains any vested interest in the

proceeds of any certificate until the certificate has become due and payable in

conformity with the provisions of the benefit contract.

2. A society may make provision for the payment of funeral benefits to the extent of

incurred expense occasioned by the burial of the member, not to exceed the sum of

one thousand dollars.

3. If, at the death of any person insured under a benefit contract, there is no lawful

beneficiary to whom the proceeds are payable, the amount of the benefit, except to the

extent that funeral benefits may be paid as provided in subsection 2, is payable to the

personal representative of the deceased insured, except that the proceeds are

payable to the owner of the certificate if the owner was not the insured.
N.D. Cent. Code § 26.1-26-41 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-41
26.1-26-41. Prohibited activities by consultants
Status: in_force

26.1-26-41. Prohibited activities by consultants

No licensed consultant may employ, be employed by, or be in partnership, limited liability

partnership, or limited liability company with nor receive any remuneration whatsoever from any

licensed insurance producer, surplus lines insurance producer, or insurer arising out of activities

as a consultant. No person may concurrently hold a consultant's license and a license as an

insurance producer or surplus lines insurance producer in any line.
N.D. Cent. Code § 26.1-16-14 — ND Code / Title 26.1 / Chapter 26.1-16 / Section 26.1-16-14
26.1-16-14. Classification of membership - Units
Status: in_force

26.1-16-14. Classification of membership - Units

A benevolent society may provide for the classification of its membership by one or more

units based on the age of individual members, or by the adoption of a maximum limit of one

group or unit. Before the organization of a new group or unit, the society shall notify the

commissioner of its proposal to organize the group or unit, and the organization must be

conducted in accordance with any applicable rules adopted by the commissioner. The number

of members in a unit may not be less than is required for the organization of a society. If the

membership of any group or unit of any society falls below two hundred, the group or unit must

be consolidated with another group or unit of the society unless within sixty days the group or

unit has restored its membership to the minimum required by this section. An age group

composed of members over age sixty-five, however, may be established and maintained at not

less than one hundred members.
N.D. Cent. Code § 26.1-37-04.1 — ND Code / Title 26.1 / Chapter 26.1-37 / Section 26.1-37-04.1
26.1-37-04.1. Types of consumer credit insurance
Status: in_force

26.1-37-04.1. Types of consumer credit insurance

The types of consumer credit insurance defined in section 26.1-37-02 may each be written

separately or in combination with other types of consumer credit insurance on an individual

policy or group policy basis. The commissioner may by rule prohibit or limit any combination.
N.D. Cent. Code § 26.1-02.1-05.3 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-05.3
26.1-02.1-05.3. Criminal prosecution
Status: in_force

26.1-02.1-05.3. Criminal prosecution

The imposition of a fine or other sanction under this chapter does not preclude prosecution

for a violation of a criminal law of the state.
N.D. Cent. Code § 26.1-10-01 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-01
26.1-10-01. Definitions
Status: in_force

26.1-10-01. Definitions

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

1. "Affiliate" means a person that directly, or indirectly through one or more

intermediaries, controls, or is under the control of, or is under common control with, the

person specified.

2. "Control" means the possession, direct or indirect, of the power to direct or cause the

direction of the management and policies of a person, whether through the ownership

of voting securities, by contract other than a commercial contract for goods or

nonmanagement services, or otherwise, unless the power is the result of an official

position with or corporate office held by the person. Control is presumed to exist if any

person, directly or indirectly, owns, controls, holds with the power to vote, or holds

proxies representing ten percent or more of the voting securities of any other person.

This presumption may be rebutted by a showing made in the manner provided for in

subsection 9 of section 26.1-10-04, that control does not exist in fact. The

commissioner may determine, after furnishing all persons in interest notice and

opportunity to be heard and making specific findings of fact to support such

determination, that control exists in fact, notwithstanding the absence of a presumption

to that effect.

3. "Enterprise risk" means any activity, circumstance, event, or series of events involving

one or more affiliates of an insurer which, if not remedied promptly, is likely to have a

material adverse effect upon the financial condition or liquidity of the insurer or the

insurer's insurance holding company system as a whole including anything that would

cause the insurer's risk-based capital to fall into company action level as set forth in

section 26.1-03.1-03 or would cause the insurer to be in hazardous financial condition

as set forth in North Dakota Administrative Code section 45-03-13-01.

4. "Group capital calculation instructions" means the group capital calculation instructions

adopted by the national association of insurance commissioners and as amended in

accordance with the procedures adopted by the national association of insurance

commissioners.

5. "Groupwide supervisor" means the regulatory official authorized to engage in

conducting and coordinating groupwide supervision activities who is determined or

acknowledged by the commissioner under section 26.1-10-06.2 to have sufficient

significant contacts with the internationally active insurance group.

6. "Insurance holding company system" means two or more affiliated persons, one or

more of which is an insurer.

7. "Insurer" has the same definition as provided in section 26.1-29-02, except the term

does not include an agency, authority, or instrumentality of the United States or its

possessions or a state or political subdivision of a state.

8. "Internationally active insurance group" means an insurance holding company system

that includes an insurer registered under section 26.1-10-04, and meets the following

criteria:

a. Premiums written in at least three countries;

b. The percentage of gross premiums written outside the United States is at least

ten percent of the insurance holding company system's total gross written

premiums; and

c. Based on a three-year rolling average, the total assets of the insurance holding

company system are at least fifty billion dollars or the total gross written

premiums of the insurance holding company system are at least ten billion

dollars.

9. "Liquidity stress test framework" means the national association of insurance

commissioners liquidity stress test framework that includes a history of the

association's development of regulatory liquidity stress testing, the scope criteria

applicable for a specific data year, the liquidity stress test instructions, and reporting

templates for a specific data year, as adopted and amended in accordance with the

procedures adopted by the association.

10. "Person" means an individual, a corporation, a limited liability company, a partnership,

an association, a joint stock company, a trust, or an unincorporated organization or any

similar entity or any combination of the foregoing acting in concert. The term does not

include any joint venture partnership exclusively engaged in owning, managing,

leasing, or developing real or tangible personal property.

11. "Scope criteria" means the designated exposure bases along with minimum

magnitudes of those bases for the specified data year, used to establish a preliminary

list of insurers considered scoped into the national association of insurance

commissioners liquidity stress test framework for that data year.

12. "Securityholder" of a specified person means the owner of any security of the person,

including common stock, preferred stock, debt obligations, and any other security

convertible into or evidencing the right to acquire any of the foregoing.

13. "Subsidiary" of a specified person means an affiliate under the control of the person

directly, or indirectly through one or more intermediaries.

14. "Voting security" includes any security convertible into or evidencing a right to acquire

a voting security.
N.D. Cent. Code § 26.1-14-04 — ND Code / Title 26.1 / Chapter 26.1-14 / Section 26.1-14-04
26.1-14-04. Board of directors - Articles of incorporation - Bylaws - Insuring powers
Status: in_force

26.1-14-04. Board of directors - Articles of incorporation - Bylaws - Insuring powers

1. The company will be governed by a board of directors consisting of eleven members.

The commissioner shall appoint the initial board within thirty days of notification by the

North Dakota board of medicine of its decision for implementation of this chapter from

fifteen nominees proposed by that board. The initial board shall serve for an initial term

of seven months. Thereafter, the directors must be elected by the members of the

company in accordance with the articles of incorporation and bylaws.

2. At least seven members of the board of directors must be licensed physicians and at

least two members of the board must have had insurance underwriting or claims

handling experience.

3. Within thirty days after appointment by the commissioner, the initial board of directors

shall prepare and file articles of incorporation and bylaws in accordance with this

chapter and chapter 26.1-12.

4. Upon filing the articles of incorporation and bylaws with the commissioner, the articles

and bylaws are operative and the commissioner shall issue a certificate of authority

subject only to verification by the commissioner that the required initial surplus of the

company has been paid and all deposits have been completed.

5. The certificate of authority authorizes the company to issue policies of casualty

insurance as follows:

a. Insurance against liability of physicians for injury arising out of the rendering of or

failure to render professional services by the insured.

b. Insurance against the liability of any person for whose act or omissions a

physician is responsible under subdivision a, or with whom the physician is

associated, including partners, employees, employers, associates, consultants, a

professional service corporation whose stock is owned by an insured, or a

professional service limited liability company whose membership interests are

owned by the insured.

c. Insurance against other liabilities for injury by persons employed in, by property

used in, or by activities incidental to, the practice of medicine by the named

insured, when issued as incidental coverage with or supplemental to insurance

specified in subdivision a.
N.D. Cent. Code § 26.1-33-26 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-26
26.1-33-26. Benefits on default off the anniversary - Exempted benefits
Status: in_force

26.1-33-26. Benefits on default off the anniversary - Exempted benefits

Any cash surrender value and any paid-up nonforfeiture benefit, available under the policy

in the event of default in a premium payment due at any time other than on the policy

anniversary, must be calculated with allowance for the lapse of time and the payment of

fractional premiums beyond the last preceding policy anniversary. All values referred to in

sections 26.1-33-19 through 26.1-33-24 may be calculated upon the assumption that any death

benefit is payable at the end of the policy year of death. The net value of any paid-up additions,

other than paid-up term additions, may be not less than the amounts used to provide the

additions. Notwithstanding section 26.1-33-19, additional benefits payable:

1. In the event of death or dismemberment by accident or accidental means;

2. In the event of total and permanent disability;

3. As reversionary annuity or deferred reversionary annuity benefits;

4. As term insurance benefits provided by a rider or supplemental policy provision to

which, if issued as a separate policy, sections 26.1-33-18 through 26.1-33-28 would

not apply;

5. As term insurance on the life of a child or on the lives of children provided in a policy

on the life of a parent of the child, if such term insurance expires before the child's age

is twenty-six years, is uniform in amount after the child's age is one year, and has not

become paid up by reason of the death of a parent of the child; and

6. As other policy benefits additional to life insurance and endowment benefits, and

premiums for all such additional benefits, must be disregarded in ascertaining cash

surrender values and nonforfeiture benefits required by sections 26.1-33-18 through

26.1-33-28, and no such additional benefits may be required to be included in any

paid-up nonforfeiture benefits.
N.D. Cent. Code § 26.1-12-03 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-03
26.1-12-03. Articles of incorporation - Contents
Status: in_force

26.1-12-03. Articles of incorporation - Contents

Persons proposing to form a mutual insurance company under this chapter shall subscribe

and acknowledge articles of incorporation specifying:

1. The name of the company and the purpose for which it is to be formed.

2. The location of its principal or home office, which must be within this state.

3. The names and addresses of those composing the board of directors in which the

management is vested until the first meeting of the members.

4. The names and places of residence of the incorporators.

5. The term of existence of the company, which may be perpetual.
N.D. Cent. Code § 26.1-26-16 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-16
26.1-26-16. License requirement - Insurance broker - Experience
Status: repealed

26.1-26-16. License requirement - Insurance broker - Experience

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-15.1-37 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-37
26.1-15.1-37. Exemption of certain societies
Status: in_force

26.1-15.1-37. Exemption of certain societies

1. Except as otherwise provided, this chapter does not affect or apply to:

a. Grand or subordinate lodges of societies, orders, or associations now doing

business in this state which provide benefits exclusively through local or

subordinate lodges.

b. Orders, societies, or associations that admit to membership only persons

engaged in one or more crafts or hazardous occupations, in the same or similar

lines of business, insuring only their own members and their families, and

auxiliaries to such orders, societies, or associations.

c. Domestic societies that limit their membership to employees of a particular city,

designated firm, business house, or corporation which provide for a death benefit

of not more than four hundred dollars or disability benefits of not more than three

hundred fifty dollars to any person in any one year, or both.

d. Domestic societies or associations of a purely religious, charitable, or benevolent

description which provide for a death benefit of not more than four hundred

dollars or for disability benefits of not more than three hundred fifty dollars to any

one person in any one year, or both.

2. Any society or association described in subdivision c or d of subsection 1 which

provides for death or disability benefits for which benefit certificates are issued, and

any such society or association included in subdivision d of subsection 1 which has

more than one thousand members, is not exempt from this chapter but shall comply

with all requirements thereof.

3. No society that, by this section, is exempt from the requirements of this chapter,

except any society described in subdivision d of subsection 1, may give, allow, or

promise to give or allow to any person any compensation for procuring new members.

4. Every society that provides for benefits in case of death or disability resulting solely

from accident and which does not obligate itself to pay natural death or sick benefits

has all of the privileges and is subject to all the applicable provisions of this chapter,

except that the provisions relating to medical examination, valuations of benefit

certificates, and incontestability, do not apply to such society.

5. The commissioner may require from any society or association, by examination or

otherwise, information to enable the commissioner to determine whether such society

or association is exempt from this chapter.

6. Societies exempted under this section are also exempt from all other provisions of the

insurance laws of this state.
N.D. Cent. Code § 26.1-12-29 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-29
26.1-12-29. Dividends payable by mutual insurance company
Status: in_force

26.1-12-29. Dividends payable by mutual insurance company

Any mutual insurance company writing fire, accident, or other forms of insurance protection

on its own motion or at the request of policyholders may pay dividends to the different classes of

policyholders based upon the losses sustained as compared with the income received from

those engaged in a particular trade, occupation, or profession.
N.D. Cent. Code § 26.1-07-20 — ND Code / Title 26.1 / Chapter 26.1-07 / Section 26.1-07-20
26.1-07-20. Report of dissolutions and receivership made by commissioner
Status: repealed

26.1-07-20. Report of dissolutions and receivership made by commissioner

Repealed by S.L. 1991, ch. 305, § 14.
N.D. Cent. Code § 26.1-03-19.8 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-19.8
26.1-03-19.8. Data calls
Status: in_force

26.1-03-19.8. Data calls

1. The commissioner or the commissioner's designated representative may issue a data

call under this chapter whenever the commissioner deems it appropriate. The

insurance company shall reply in writing to the data call within twenty days of receipt of

the inquiry unless within that twenty days the company requests and the commissioner

grants an extension of time.

2. For purposes of completing a data call under this section, the commissioner may

inquire into any person, or the business of any person, to the extent the inquiry or

investigation is, in the sole discretion of the commissioner, necessary or material to the

operations of the company.

3. The commissioner may designate the national association of insurance commissioners

or another representative as the repository for data call responses.

4. All materials, working papers, information, documents, and copies produced by,

obtained by, or disclosed to the commissioner or any other person in the course of a

data call made under this chapter, or in the course of analysis by the commissioner of

the market conduct of the company:

a. Must be given confidential treatment;

b. Are not subject to subpoena; and

c. May not be made public by the commissioner or any other person, except to the

extent provided in this chapter.

5. The commissioner may use the documents, materials, or other information in

furtherance of any regulatory or legal action brought as part of the commissioner's

official duties.

6. The commissioner may make the results of the data call available for public inspection

in an aggregate and anonymized format that does not disclose information or data

attributed to any specific company or person, including the name of any company or

person who responded to the data call.

7. The commissioner may adopt rules to administer this section.
N.D. Cent. Code § 26.1-26-31.9 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.9
26.1-26-31.9. Credit for active participation
Status: in_force

26.1-26-31.9. Credit for active participation

1. For each two-year reporting period, the commissioner may approve up to four hours of

continuing education credit earned through active participation, with no more than two

hours accepted for each calendar year. One hour of active participation equates to one

hour of continuing education credit. A licensee may not use continuing education

granted for active participation to satisfy other continuing education requirements or

ethics hours required under section 26.1-26-31.1.

2. If an insurance producer or consultant claims continuing education hours through

active participation, the professional insurance association shall verify the claimed

active participation. The professional insurance association shall inform the

commissioner of participation by the insurance producer or consultant. Upon receipt of

participation confirmation the commissioner may accept the claimed continuing

education hours.
N.D. Cent. Code § 26.1-12.2-14 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-14
26.1-12.2-14. Converting mutual company insolvent or in hazardous financial condition
Status: in_force

26.1-12.2-14. Converting mutual company insolvent or in hazardous financial

condition.

1. If a converting mutual company seeking to convert under this chapter is insolvent or is

in hazardous financial condition according to information supplied in the mutual

company's most recent annual or quarterly statement filed with the insurance

department or as determined by a financial examination performed by the insurance

department, the requirements of this chapter, including notice to and policyholder

approval of the plan of conversion, may be waived at the discretion of the

commissioner. If a waiver under this section is ordered by the commissioner, the

converting mutual company shall specify in the mutual company's plan of conversion:

a. The method and basis for the issuance of the converted stock company's shares

of its capital stock to an independent party in connection with an investment by

the independent party in an amount sufficient to restore the converted stock

company to a sound financial condition.

b. That the conversion must be accomplished without granting subscription rights or

other consideration to policyholders.

2. This section does not alter or limit the authority of the commissioner under any other

provisions of law, including receivership and liquidation provisions applicable to

insurance companies.
N.D. Cent. Code § 26.1-26-31.1 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-31.1
26.1-26-31.1. Continuing education required - Exceptions
Status: in_force

26.1-26-31.1. Continuing education required - Exceptions

1. Except as otherwise provided in this chapter, any individual licensed as a resident

insurance producer or resident insurance consultant shall provide the commissioner

evidence, as required by the commissioner, that the individual attended or participated

in continuing education of not less than twenty-four hours of approved coursework, of

which three hours must be in ethics. The commissioner may reduce or waive the

minimum number of hours per year of approved coursework for any individual having a

license limited to a specific product type. Credits for courses attended in any one year

over the minimum number of hours of coursework required, not to exceed twelve

hours, may be credited to the year next preceding the year in which they were earned

or to the year next following the year in which they were earned. Reports of continuing

education must be made at the end of a two-year period. The commissioner may

provide a one-time extension of the two-year reporting requirement, not to exceed

thirty-six months, if additional time is necessary in order to implement the transition to

reporting continuing education by birth month. No continuing education is required of

an insurance producer who, as of January 1, 2010, is at least sixty-two years of age

and who has a combined total years of continuous licensure as an insurance producer

and years of age which equals eighty-five.

2. The commissioner shall by rule provide for reporting by birth month of compliance with

the continuing education requirements of this section.
N.D. Cent. Code § 26.1-36-12.3 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-12.3
26.1-36-12.3. Basic health insurance coverage - Exception to required coverages
Status: in_force

26.1-36-12.3. Basic health insurance coverage - Exception to required coverages

Expired under S.L. 1991, ch. 319, § 3.
N.D. Cent. Code § 26.1-05-05 — ND Code / Title 26.1 / Chapter 26.1-05 / Section 26.1-05-05
26.1-05-05. Qualification of directors - Residence requirements of directors and executive officers
Status: repealed

26.1-05-05. Qualification of directors - Residence requirements of directors and

executive officers.

Repealed by S.L. 1989, ch. 349, § 4.
N.D. Cent. Code § 26.1-03.2-08 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-08
26.1-03.2-08. Confidentiality - Prohibition on announcements - Prohibition on use in ratemaking
Status: in_force

26.1-03.2-08. Confidentiality - Prohibition on announcements - Prohibition on use in

ratemaking.

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

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

including the results or report of any examination or analysis of a health organization

performed pursuant to this chapter, and any corrective order issued by the

commissioner pursuant to examination or analysis, with respect to a domestic health

organization or foreign health organization, which are filed with the commissioner

constitute information that might be damaging to the health organization if made

available to its competitors, and therefore shall be kept confidential by the

commissioner. This information may not be made public or be subject to subpoena,

other than by the commissioner and then only for the purpose of enforcement actions

taken by the commissioner pursuant to this chapter or any other provision of the

insurance laws of this state.

2. Neither the commissioner nor any person that received documents, materials, or other

information while acting under the authority of the commissioner is permitted or

required to testify in any private civil action concerning any confidential documents,

materials, or information subject to subsection 1.

3. 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 state,

federal, and international law enforcement authorities, if 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 documents, materials, or

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

the source of the document, material, or other information; and

c. Enter agreements governing sharing and use of information consistent with this

subsection.

4. A waiver of an applicable privilege or claim of confidentiality in the documents,

materials, or information does not occur as a result of disclosure to the commissioner

under this section or as a result of sharing as authorized in subdivision c of

subsection 3.

5. It is the judgment of the legislature that the comparison of a health organization's total

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

indicate the need for corrective action with respect to the health organization and is not

intended as a means to rank health organizations generally. Therefore, except as

otherwise required under the provisions of this chapter, the making, publishing,

disseminating, circulating, or placing before the public, or causing, directly or indirectly

to be made, published, disseminated, circulated, or placed before the public, in a

newspaper, magazine, or other publication, or in the form of a notice, circular,

pamphlet, letter, or poster, or over a radio or television station, or in any other way, an

advertisement, announcement, or statement containing an assertion, representation,

or statement with regard to the risk-based capital levels of any health organization, or

of any component derived in the calculation, by any health organization, insurance

producer, or other person engaged in any manner in the insurance business would be

misleading and is therefore prohibited. However, if any materially false statement with

respect to the comparison regarding a health organization's total adjusted capital to its

risk-based capital levels, or any of them, or an inappropriate comparison of any other

amount to the health organization's risk-based capital levels is published in any written

publication and the health organization is able to demonstrate to the commissioner

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

may be, then the health organization may publish an announcement in a written

publication if the sole purpose of the announcement is to rebut the materially false

statement.

6. It is the further judgment of the legislature that the risk-based capital instructions,

risk-based capital reports, adjusted risk-based capital reports, risk-based capital plans,

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

in monitoring the solvency of health organizations and the need for possible corrective

action with respect to health organizations and may not be used by the commissioner

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

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

premium level or rate of return for any line of insurance that a health organization or

any affiliate is authorized to write.
N.D. Cent. Code § 26.1-33-09 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-09
26.1-33-09. Cooperative or assessment life association must identify policies
Status: in_force

26.1-33-09. Cooperative or assessment life association must identify policies

Every cooperative or assessment life association transacting business in this state shall

print in bold type and in red ink, near the top of the front page of each policy or certificate issued

upon the life of any resident of this state, the words "issued upon the assessment plan".
N.D. Cent. Code § 26.1-11-03 — ND Code / Title 26.1 / Chapter 26.1-11 / Section 26.1-11-03
26.1-11-03. Failure to comply with conditions renders contracts void on behalf of company - Enforcement against company
Status: in_force

26.1-11-03. Failure to comply with conditions renders contracts void on behalf of

company - Enforcement against company.

A contract made by or on behalf of any foreign insurance company doing business in this

state without first complying with section 26.1-11-01 or 26.1-11-04 is void and unenforceable on

behalf of the company and its assigns, but the contract may be enforced against the company.
N.D. Cent. Code § 26.1-33-12.1 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-12.1
26.1-33-12.1. Life of a child - Disclosure
Status: in_force

26.1-33-12.1. Life of a child - Disclosure

A group life insurance policy issued in this state which insures the life of a newborn child of

the certificate holder may not include a provision delaying coverage on the life of the newborn

child for a specified period, unless the existence and length of the waiting period is prominently

disclosed in the certificate or rider or otherwise disclosed by the group policyholder to a

certificate holder at the time the certificate holder becomes eligible or enrolls for the coverage.
N.D. Cent. Code § 26.1-02.2-08 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-08
26.1-02.2-08. Exceptions
Status: in_force

26.1-02.2-08. Exceptions

1. The following exceptions apply to this chapter:

a. A licensee with less than five million dollars in gross revenue or less than

ten million dollars in year-end assets is exempt from subsections 2 through 10 of

section 26.1-02.2-03.

b. A licensee that is subject to, governed by, and compliant with the privacy, security,

and breach notification rules issued by the United States department of health

and human services, title 45, Code of Federal Regulations, parts 160 and 164,

established pursuant to the federal Health Insurance Portability and

Accountability Act of 1996 [Pub. L. 104-191], and the federal Health Information

Technology for Economic and Clinical Health Act [Pub. L. 111-5], and which

maintains nonpublic information concerning a consumer in the same manner as

protected health information is deemed to comply with the requirements of

section 26.1-02.2-03.

c. An employee, agent, representative, or designee of a licensee, that also is a

licensee, is exempt from section 26.1-02.2-03 and is not required to develop an

information security program to the extent the employee, agent, representative, or

designee is covered by the information security program of the other licensee.

2. If a licensee ceases to qualify for an exception, the licensee has one hundred eighty

days to comply with this chapter.
N.D. Cent. Code § 26.1-26.8-03 — ND Code / Title 26.1 / Chapter 26.1-26.8 / Section 26.1-26.8-03
26.1-26.8-03. License required - Penalty
Status: in_force

26.1-26.8-03. License required - Penalty

1. A person may not operate as or represent that the person is a public adjuster in this

state unless the person is licensed as a public adjuster in accordance with this

chapter.

2. A public adjuster may not misrepresent to an insured the public adjuster is an adjuster

representing an insurer in any capacity, including acting as an employee of the insurer

or acting as an independent adjuster.

3. A public adjuster may not solicit or enter an agreement for the repair or replacement of

damaged property on which the public adjuster has engaged to adjust or settle claims

for losses or damages of the insured.

4. Except as provided in subsection 1, licensure as a public adjuster is not required for:

a. An attorney admitted to practice in this state, in the course of acting in the

attorney's professional capacity as an attorney;

b. A person that negotiates or settles claims arising under a life or health insurance

policy or an annuity contract;

c. An individual employed for the limited purpose of obtaining facts surrounding a

loss or furnishing technical assistance to a licensed public adjuster, including a

photographer, estimator, private investigator, engineer, or handwriting expert;

d. A licensed health care provider, or an employee of a licensed health care

provider, who prepares or files a health claim form on behalf of a patient; or

e. A person that settles subrogation claims between insurers.

5. A person willfully violating subsection 1 or 2 is guilty of a class C felony.
N.D. Cent. Code § 26.1-39.1-03 — ND Code / Title 26.1 / Chapter 26.1-39.1 / Section 26.1-39.1-03
26.1-39.1-03. Certificate of insurance limitations
Status: in_force

26.1-39.1-03. Certificate of insurance limitations

A person may not alter or modify a certificate of insurance form approved by the

commissioner; may not demand, require, or issue a certificate of insurance that contains any

false or misleading information concerning the policy of insurance to which the certificate of

insurance makes reference; and may not knowingly prepare or issue a certificate of insurance

that purports to affirmatively or negatively alter, amend, or extend the coverage provided by the

policy. A certificate of insurance may not contain a reference to a construction contract, service

contract, or insurance requirement for the purpose of amending coverage afforded by the policy

to which the certificate makes reference.
N.D. Cent. Code § 26.1-39-11 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-11
26.1-39-11. Definitions
Status: in_force

26.1-39-11. Definitions

1. "Declination" means the refusal of an insurer to issue a property insurance policy upon

receipt of a written nonbinding application or written request for coverage from its

insurance producer or an applicant. For the purposes of sections 26.1-39-10 through

26.1-39-21, the offering of insurance coverage with a company within an insurance

group which is different from the company requested on the nonbinding application or

written request for coverage or the offering of insurance upon different terms than

requested in the nonbinding application or written request for coverage is considered a

declination.

2. "Nonpayment of premium" means the failure of the named insured to discharge any

obligation in connection with the payment of premiums on property insurance policies

subject to sections 26.1-39-10 through 26.1-39-21, whether the payments are directly

payable to the insurer or its insurance producer or indirectly payable under a premium

finance plan or extension of credit. "Nonpayment of premium" includes the failure to

pay dues or fees when payment of dues or fees is a prerequisite to obtaining or

continuing property insurance coverage.

3. "Renewal" or "to renew" means the issuance and delivery by an insurer at the end of a

policy period of a policy superseding a policy previously issued and delivered by the

same insurer, or the issuance and delivery of a certificate or notice extending the term

of an existing policy beyond its policy period or term. The term includes a change or

alteration in the amount of a deductible, coverage, or exclusion which results in

substantially equivalent coverage if the altered terms are provided to the insured in the

notice of renewal.

4. "Termination" means cancellation or nonrenewal of property insurance coverage in

whole or in part. Cancellation occurs during the policy term. Nonrenewal occurs at the

end of the policy term as set forth in subsection 3. For purposes of sections 26.1-39-10

through 26.1-39-21, the transfer of a policy between companies within the same

insurance holding company system is not a termination. A renewal with altered terms

as provided in subsection 3 is not a termination.
N.D. Cent. Code § 26.1-34-03 — ND Code / Title 26.1 / Chapter 26.1-34 / Section 26.1-34-03
26.1-34-03. Value of paid-up annuity benefit to be at least equal to minimum nonforfeiture amount
Status: in_force

26.1-34-03. Value of paid-up annuity benefit to be at least equal to minimum

nonforfeiture amount.

Any paid-up annuity benefit available under an annuity contract must be such that its

present value on the date annuity payments are to commence is at least equal to the minimum

nonforfeiture amount on that date. The present value must be computed using the mortality

table, if any, and the interest rate specified in the contract for determining the minimum paid-up

annuity benefits guaranteed in the contract.
N.D. Cent. Code § 26.1-36-09.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-09.2
26.1-36-09.2. Health insurance policy and health service contract - Involuntary complications of pregnancy coverage
Status: in_force

26.1-36-09.2. Health insurance policy and health service contract - Involuntary

complications of pregnancy coverage.

No insurance company, nonprofit health service corporation, or health maintenance

organization may deliver, issue, execute, or renew any health insurance policy, health service

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

basis if the policy, contract, or evidence of coverage contains any exclusion, reduction, or other

limitation as to coverage, deductibles, or coinsurance provisions, as to involuntary complications

of pregnancy, unless the provisions apply generally to all benefits paid under the policy,

contract, or evidence of coverage. If a fixed amount is specified in the policy, contract, or

evidence of coverage for surgery, the fixed amounts for surgical procedures involving

involuntary complications of pregnancy must be commensurate with other fixed amounts

payable for procedures of comparable difficulty and severity. If a fixed amount is payable for

maternity benefits, involuntary complications of pregnancy are an illness and entitled to benefits

otherwise provided by the policy, contract, or evidence of coverage. If the policy, contract, or

evidence of coverage contains a maternity deductible, the maternity deductible applies only to

expenses resulting from normal delivery and caesarean section delivery; however, expenses for

caesarean section delivery in excess of the deductible must be treated as expenses for any

other illness under the policy, contract, or evidence of coverage. For purposes of this section,

"involuntary complications of pregnancy" includes nonelective caesarean section delivery.
N.D. Cent. Code § 26.1-27-01 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-01
26.1-27-01. Administrator defined
Status: in_force

26.1-27-01. Administrator defined

In this chapter, "administrator" means any person who collects charges or premiums from,

or who adjusts or settles claims on, residents of this state in connection with life or health

insurance coverage or annuities other than:

1. An employer on behalf of its employees or the employees of one or more subsidiary or

affiliated corporations or limited liability companies of the employer.

2. A union on behalf of its members.

3. An insurance company, health maintenance organization, or nonprofit health service

corporation either licensed in this state or acting as an insurer with respect to a policy

lawfully issued and delivered by it in and pursuant to the laws of a state in which the

insurer was authorized to do an insurance business or prepaid health care plan,

including its sales representatives licensed in this state when engaged in the

performance of their duties as such.

4. A life or health insurance producer licensed in this state, whose activities are limited

exclusively to the sale of insurance.

5. A creditor on behalf of its debtors with respect to insurance covering a debt between

the creditor and its debtors.

6. A trust, its trustees, agents, and employees acting thereunder, established in

conformity with 29 U.S.C. 186.

7. A trust exempt from taxation under section 501(a) of the federal Internal Revenue

Code of 1954, as amended, its trustees, and employees acting thereunder, or a

custodian, its agents and employees acting pursuant to a custodian account which

meets the requirements of section 401(f) of the federal Internal Revenue Code of

1954, as amended.

8. A financial institution subject to supervision or examination by federal or state banking

authorities.

9. A credit card issuing company that advances for and collects premiums or charges

from its credit card holders who have authorized it to do so, provided the company

does not adjust or settle claims.

10. A person who adjusts or settles claims in the normal course of practice or employment

as an attorney at law, and who does not collect charges or premiums in connection

with life or health insurance coverage or annuities.
N.D. Cent. Code § 26.1-36.12-04 — ND Code / Title 26.1 / Chapter 26.1-36.12 / Section 26.1-36.12-04
26.1-36.12-04. Personnel qualified to review appeals
Status: in_force

26.1-36.12-04. Personnel qualified to review appeals

1. A prior authorization review organization shall ensure all appeals are reviewed by a

physician. The reviewing individual:

a. Shall possess a valid nonrestricted license to practice medicine.

b. Must be in active practice in the same or similar specialty as the physician who

typically manages the medical condition or disease for at least five consecutive

years.

c. Must be knowledgeable of, and have experience providing, the health care

services under appeal.

d. May not receive any financial incentive based on the number of adverse

determinations made. This subdivision does not apply to financial incentives

established between health plan companies and health care providers.

e. May not have been directly involved in making the adverse determination.

f. Shall consider all known clinical aspects of the health care service under review,

including a review of all pertinent medical records provided to the prior

authorization review organization by the enrollee's health care provider, any

relevant records provided to the prior authorization review organization by a

health care facility, and any medical literature provided to the prior authorization

review organization by the health care provider.

2. A review of an adverse determination involving a prescription drug must be conducted

by a licensed pharmacist or physician who is competent to evaluate the specific

clinical issues presented in the review.

3. This section does not apply to reviews conducted under sections 26.1-36-44 and

26.1-36-46.
N.D. Cent. Code § 26.1-17.1-08 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-08
26.1-17.1-08. Evidence of coverage
Status: in_force

26.1-17.1-08. Evidence of coverage

1. Every subscriber must be issued an evidence of coverage, which must contain a clear

and complete statement of:

a. The limited health services to which each enrollee is entitled.

b. Any limitation of the services, kinds of services or benefits to be provided, and

exclusions, including any deductible, copayment, or other charges.

c. Where and in what manner information is available as to where and how services

may be obtained.

d. The method for resolving complaints.

2. Any amendment to the evidence of coverage may be provided to the subscriber in a

separate document.
N.D. Cent. Code § 26.1-20-03 — ND Code / Title 26.1 / Chapter 26.1-20 / Section 26.1-20-03
26.1-20-03. Surplus to constitute guaranty fund - Deposit
Status: in_force

26.1-20-03. Surplus to constitute guaranty fund - Deposit

The surplus provided for in section 26.1-20-02 constitutes a guaranty fund, which must be

invested in securities as provided by section 26.1-05-19, and be duly deposited with the

commissioner, and the commissioner's certification of that deposit must be procured, as

provided by law. This deposit must be maintained unimpaired and the principal of the fund may

be applied only to the payment of losses and expenses by reason of its guaranty and insurance

contracts, but the corporation has the right to collect the income from the deposit and to

substitute other like securities of equal amount and value from time to time.
N.D. Cent. Code § 26.1-15.1-09 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-09
26.1-15.1-09. Waiver
Status: in_force

26.1-15.1-09. Waiver

The laws of the society may provide that no subordinate body nor any of its subordinate

officers or members has the power or authority to waive any of the provisions of the laws of the

society. The provision is binding on the society and every member and beneficiary of a member.
N.D. Cent. Code § 26.1-49-02 — ND Code / Title 26.1 / Chapter 26.1-49 / Section 26.1-49-02
26.1-49-02. Organization - Licensure
Status: in_force

26.1-49-02. Organization - Licensure

A health provider cooperative shall organize under chapter 10-15 unless otherwise provided

in this chapter. After incorporation the health provider cooperative is subject to chapter 10-15

unless otherwise provided in this chapter. If a provision of this chapter conflicts with chapter

10-15, the provision of this chapter applies. A health provider cooperative organized under this

chapter is not an insurance company under chapter 26.1-12, a health maintenance organization

under chapter 26.1-18.1, or a nonprofit health service corporation under chapter 26.1-17. A

health provider cooperative does not violate limitations on the corporate practice of medicine.
N.D. Cent. Code § 26.1-33-28 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-28
26.1-33-28. Exceptions
Status: in_force

26.1-33-28. Exceptions

Sections 26.1-33-18 through 26.1-33-27 do not apply to:

1. Reinsurance;

2. Group insurance;

3. Pure endowment;

4. An annuity or reversionary annuity contract;

5. A term policy of uniform amount, which provides no guaranteed nonforfeiture or

endowment benefits, or renewal thereof, of twenty years or less expiring before age

seventy-one, for which uniform premiums are payable during the entire term of the

policy;

6. A term policy of decreasing amount, which provides no guaranteed nonforfeiture or

endowment benefits, on which each adjusted premium, calculated as specified in

sections 26.1-33-21 through 26.1-33-24 is less than the adjusted premium so

calculated on a term policy of uniform amount, or renewal thereof, which provides no

guaranteed nonforfeiture or endowment benefits, issued at the same age and for the

same initial amount of insurance and for a term of twenty years or less expiring before

age seventy-one, for which uniform premiums are payable during the entire term of the

policy;

7. A policy, which provides no guaranteed nonforfeiture or endowment benefits, for which

no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit,

at the beginning of any policy year, calculated as specified in sections 26.1-33-19

through 26.1-33-24, exceeds two and one-half percent of the amount of insurance at

the beginning of the same policy year; nor

8. A policy delivered outside this state through an insurance producer or other

representative of the insurer issuing the policy.

For purposes of determining the applicability of sections 26.1-33-18 through 26.1-33-28, the age

of expiry for a joint term life insurance policy is the age of expiry of the oldest life.
N.D. Cent. Code § 26.1-06.1-29 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-29
26.1-06.1-29. Setoffs
Status: in_force

26.1-06.1-29. Setoffs

1. Mutual debts or mutual credits, whether arising out of one or more contracts between

the insurer and another person in connection with any action or proceeding under this

chapter, must be set off and the balance only may be allowed or paid, except as

provided in subsection 2 and section 26.1-06.1-32.

2. No setoff may be allowed in favor of any person when:

a. The obligation of the insurer to the person would not at the date of filing of a

petition for receivership entitle the person to share as a claimant in the assets of

the insurer;

b. The obligation of the insurer to the person was purchased by or transferred to the

person with a view to its being used as a setoff;

c. The obligation of the insurer is owed to an affiliate of the person, or any other

entity or association other than the person;

d. The obligation of the person is owed to an affiliate of the insurer, or any other

entity or association other than the insurer;

e. The obligation of the person is to pay an assessment levied against the members

or subscribers of the insurer, or is to pay a balance upon a subscription to the

capital stock of the insurer, or is in any other way in the nature of a capital

contribution; or

f. The obligations between the person and the insurer arise from business when

either the person or the insurer has assumed risks and obligations from the other

party and has ceded back to that party substantially the same risks and

obligations.

3. These amendments become effective from the date of enactment and apply to all

contracts entered into, renewed, extended, or amended on or after that date, and to

debts or credits arising from any business written or transactions occurring after the

effective date pursuant to any such contract. For purposes of this section, any change

in the terms of, or consideration for, any such contract is deemed an amendment.
N.D. Cent. Code § 26.1-03.2-12 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-12
26.1-03.2-12. Notices
Status: in_force

26.1-03.2-12. Notices

All notices by the commissioner to a health organization which may result in regulatory

action under this chapter are effective upon dispatch if transmitted by registered or certified

mail, or in the case of any other transmission, are effective upon the health organization's

receipt of notice.
N.D. Cent. Code § 26.1-44-03 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-03
26.1-44-03. Surplus lines insurance
Status: in_force

26.1-44-03. Surplus lines insurance

The placement of nonadmitted insurance is subject to this section only if the insured's home

state is this state. Surplus lines insurance may be placed by a surplus lines producer if:

1. Each insurer is an eligible surplus lines insurer;

2. Each insurer is authorized to write the kind of insurance in its domiciliary jurisdiction;

3. The surplus lines producer is aware that:

a. The full amount and type of insurance is not available from the insurers who are

admitted to transact and are actually writing the particular type of insurance in this

state if any are writing it; or

b. The risk was referred to the surplus lines producer by an insurance producer

licensed in this state.

4. At the time of placement the surplus lines producer has determined that the

nonadmitted insurer:

a. Has established satisfactory evidence of good repute and financial integrity and

has capital and surplus or its equivalent under the laws of its domiciliary

jurisdiction which equals the greater of:

(1) (a) The minimum capital and surplus requirements under the law of this

state; or

(b) Fifteen million dollars.

(2) The requirements of paragraph 1 may be satisfied by an insurer possessing

less than the minimum capital and surplus upon an affirmative finding of

acceptability by the commissioner. The finding must be based upon such

factors as quality of management, capital and surplus of any parent

company, company underwriting profit and investment income trends,

market availability, and company record and reputation within the industry.

The commissioner may not make an affirmative finding of acceptability when

the nonadmitted insurer's capital and surplus is less than four million five

hundred thousand dollars; or

b. For an insurer not domiciled in the United States or its territories, the insurer is

listed on the quarterly listing of alien insurers maintained by the national

association of insurance commissioners international insurers department; and

5. All other requirements of this chapter are met.
N.D. Cent. Code § 26.1-25-02.1 — ND Code / Title 26.1 / Chapter 26.1-25 / Section 26.1-25-02.1
26.1-25-02.1. Definitions
Status: in_force

26.1-25-02.1. Definitions

1. "Advisory organization" means any entity, including its affiliates or subsidiaries, which

either has two or more member insurers or is controlled either directly or indirectly by

two or more insurers, and which assists insurers in ratemaking-related activities as

enumerated in this chapter. Two or more insurers having a common ownership or

operating in this state under common management or control constitute a single

insurer for purposes of this definition.

2. "Commercial risk" means any kind of risk which is not a personal risk.

3. "Competitive market" means a commercial risk market that has not been found to be

noncompetitive as provided for in section 26.1-25-04. All commercial risk markets

except crop hail, farmowners, and medical malpractice insurance are presumed to be

competitive.

4. "Developed losses" means losses including loss adjustment expenses, adjusted, using

standard actuarial techniques, to eliminate the effect of differences between current

payment or reserve estimates and those needed to provide actual ultimate loss

including loss adjustment expense payments.

5. "Expenses" means that portion of a rate attributable to acquisition, field supervision,

collection expenses, general expenses, taxes, licenses, and fees.

6. "Joint underwriting" means a voluntary arrangement established to provide insurance

coverage for a commercial risk pursuant to which two or more insurers jointly contract

with the insured at a price and under policy terms agreed upon between the insurers.

7. "Large commercial risk" means an insured that has:

a. Total insured property values of twenty-five million dollars or more;

b. Total annual gross revenue of fifty million dollars or more; or

c. A total premium of one hundred thousand dollars or more for property insurance,

one hundred thousand dollars or more for general liability insurance, or

two hundred thousand dollars or more for multiperil insurance.

d. The term does not include farming or ranching.

8. "Loss trending" means any procedure for projecting developed losses to the average

date of loss for the period during which the policies are to be effective.

9. "Noncompetitive market" means the crop hail, farmowners, and medical malpractice

insurance markets together with any other line of commercial risk insurance that has

not been found by the commissioner to have a reasonable degree of competitiveness

within the market considering:

a. Market concentration and changes in market concentration determined through

the use of the Herfindahl-Hirschman index and the United States department of

justice merger guidelines for an unconcentrated market;

b. The existence of financial and other barriers that prevent a company from

entering the market;

c. The number of insurers or groups of affiliated insurers providing coverage in the

market;

d. The extent to which any insurer or group of affiliated insurers controls the market;

e. Whether the total number of companies writing the line of insurance in this state

is sufficient to provide multiple insurance options in the market;

f. The availability of insurance coverage to consumers in the markets by specific

geographic area, by line of insurance, and by class of risk; and

g. The opportunities available in the market to acquire pricing and other consumer

information.

A determination that a market is noncompetitive may not be based solely on the

consideration of any one factor.

10. "Personal risk" means homeowners, tenants, private passenger nonfleet automobiles,

mobile homes, and other property and casualty insurance for personal, family, or

household needs.

11. "Pool" means a voluntary arrangement, established on an ongoing basis, pursuant to

which two or more insurers participate in the sharing of risks on a predetermined

basis. The pool may operate through an association, syndicate, or other pooling

agreement.

12. "Prospective loss costs" means that portion of a rate that does not include provisions

for expenses other than loss adjustment expenses, or profit, and are based on

historical aggregate losses and loss adjustment expenses adjusted through

development to their ultimate value and projected through trending to a future point in

time.

13. "Rate" means that cost of insurance per exposure unit whether expressed as a single

member or as a prospective loss cost with an adjustment to account for the treatment

of expenses, profit, and individual insurer variation in loss experience, prior to any

application of individual risk variations based on loss or expense considerations, and

does not include minimum premium.

14. "Residual market mechanism" means an arrangement, either voluntary or mandated

by law, involving participation by insurers in the equitable apportionment among them

of insurance which may be afforded applicants who are unable to obtain insurance

through ordinary methods.

15. "Supplementary rating information" includes any manual or plan of rates, classification,

rating schedule, minimum premium, policy fee, rating rule, underwriting rule, statistical

plan, and any other similar information needed to determine the applicable rate in

effect or to be in effect.

16. "Supporting information" means:

a. The experience and judgment of the filer and the experience or date of other

insurers or advisory organizations relied upon by the filer;

b. The interpretation of any other data relied upon by the filer; and

c. Descriptions of methods used in making the rates and any other information

required by the commissioner to be filed.
N.D. Cent. Code § 26.1-36-01.2 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-01.2
26.1-36-01.2. Examinations
Status: in_force

26.1-36-01.2. Examinations

1. As used in this section, the terms "health carrier" and "health benefit plan" have the

same meaning as provided under section 26.1-36.3-01.

2. Whenever the commissioner, in the commissioner's sole discretion, deems it

appropriate, but at least once every five years, the commissioner or any of the

commissioner's examiners shall conduct a comprehensive examination of a health

carrier with a market share of twenty-five percent or more of health benefit plan

covered lives in this state. The examination must be conducted in accordance with an

examination conducted under chapter 26.1-03. In determining the scope of the

comprehensive examination, the commissioner shall consider the criteria set forth in

the market conduct handbook adopted by the national association of insurance

commissioners and adopted by the commissioner which is in effect when the

examination is initiated and any other matters deemed appropriate by the

commissioner.
N.D. Cent. Code § 26.1-04-03 — ND Code / Title 26.1 / Chapter 26.1-04 / Section 26.1-04-03
26.1-04-03. Unfair methods of competition and unfair or deceptive acts or practices defined
Status: in_force

26.1-04-03. Unfair methods of competition and unfair or deceptive acts or practices

defined.

The following are unfair methods of competition and unfair and deceptive acts or practices

in the business of insurance:

1. Misrepresentations and false advertising of policy contracts. Making, issuing,

circulating, or causing to be made, issued, or circulated, any estimate, illustration,

circular, statement, sales presentation, omission, or comparison misrepresenting the

terms of any policy issued or to be issued or the benefits or advantages promised

thereby or the dividends or share of the surplus to be received thereon, or making any

false or misleading statements as to the dividends or share of surplus previously paid

on any insurance policies, or making any misleading representation or any

misrepresentation as to the financial condition of any person, or as to the legal reserve

system upon which any life insurance company operates, or using any name or title of

any policy or class of policies misrepresenting the true nature thereof, or making any

misrepresentation tending to induce the lapse, forfeiture, exchange, conversion, or

surrender of any insurance policy or for the purpose of effecting a pledge or

assignment of or effecting a loan against any insurance.

2. False information and advertising generally. Making, publishing, disseminating,

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

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

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

poster, or over any radio station, or in any other way, an advertisement,

announcement, or statement containing any assertion, representation, or statement

with respect to the business of insurance or with respect to any person in the conduct

of that person's insurance business, which is untrue, deceptive, or misleading.

3. Defamation. Making, publishing, disseminating, or circulating, directly or indirectly, or

aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of

any oral or written statement or any pamphlet, circular, article, or literature which is

false, or maliciously critical of or derogatory to the financial condition of any person,

and which is calculated to injure any person engaged in the business of insurance.

4. Boycott, coercion, and intimidation. Entering into any agreement to commit, or by any

concerted action committing, any act of boycott, coercion, or intimidation resulting in or

tending to result in unreasonable restraint of, or monopoly in, the business of

insurance.

5. False financial statements. Filing with any supervisory or other public official, or

making, publishing, disseminating, circulating, or delivering to any person, or placing

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

disseminated, circulated, delivered to any person, or placed before the public, any

false statement of financial condition of any person with intent to deceive.

Making any false entry in any book, report, or statement of any person with intent

to deceive any agent or examiner lawfully appointed to examine into its condition or

into any of its affairs, or any public official to whom the person is required by law to

report, or who has authority by law to examine into its condition or into any of its

affairs, or, with like intent, willfully omitting to make a true entry of any material fact

pertaining to the business of the person in any book, report, or statement of the

person.

6. Stock operations and advisory board contracts. Issuing or delivering or permitting

agents, officers, or employees to issue or deliver, agency company stock or other

capital stock, or benefit certificates or shares in any common-law corporation, or

securities or any special or advisory board contracts or other contracts of any kind

promising returns and profits as an inducement to insurance.

7. Unfair discrimination.

a. Making or permitting any unfair discrimination between individuals of the same

class and equal expectation of life in the rates charged for any contract of life

insurance or of life annuity or in the dividends or other benefits payable thereon,

or in any other of the terms and conditions of such contract.

b. Making or permitting any unfair discrimination, including consideration of an

individual's history or status as a subject of domestic abuse, between individuals

of the same class and of essentially the same hazard in the amount of premium,

policy fees, or rates charged for any policy or contract of accident or health

insurance or in the benefits payable thereunder, or in any of the terms or

conditions of such contract, or in any other manner whatsoever.

c. Refusing to insure, or refusing to continue to insure, or limiting the amount,

extent, or kind of life insurance, accident and sickness insurance, health services,

or health care protection insurance available to an individual, or charging an

individual a different rate for the same coverage solely because of blindness or

partial blindness. Refusal to insure includes denial by an insurer of disability

insurance coverage on the grounds that the policy defines "disability" as being

presumed in the event that the insured loses the insured's eyesight; however, an

insurer may exclude from coverage disabilities consisting solely of blindness or

partial blindness when such condition existed at the time the policy was issued.

With respect to all other conditions, including the underlying cause of the

blindness or partial blindness, persons who are blind or partially blind shall be

subject to the same standards of sound actuarial principles or actual or

reasonably anticipated experience as are sighted persons.

d. Making or permitting any unfair discrimination between individuals or risks of the

same class and of essentially the same hazard by refusing to insure, refusing to

renew, canceling, or limiting the amount of insurance coverage on a property or

casualty risk solely because of the geographic location of the risk, unless the

action is the result of the application of sound underwriting and actuarial

principles related to actual or reasonably anticipated loss experience.

e. Refusing to insure or charging a different rate solely in consideration of the risk's

environmental, social, and governance criteria; diversity, equity, and inclusion

policies; or political and ideological factors, unless the refusal or different rate is

the result of the application of sound underwriting and actuarial principles related

to actual or reasonably anticipated loss experience.

8. Rebates.

a. Except as otherwise expressly provided by law, knowingly permitting or offering to

make or making any contract of life insurance, life annuity, or accident and health

insurance, or agreement as to such contract other than as plainly expressed in

the contract issued thereon, or paying or allowing, or giving or offering to pay,

allow, or give, directly or indirectly, as inducement to the insurance or annuity any

rebate of premiums payable on the contract, or any special favor or advantage in

the dividends or other benefits thereon, or any valuable consideration or

inducement whatsoever not specified in the contract; or giving, selling, or

purchasing, or offering to give, sell, or purchase as inducement to the insurance

or annuity or in connection therewith, any stocks, bonds, or other securities of any

insurance company or other corporation, association, or partnership, or any

dividends or profits accrued thereon, or anything of value whatsoever not

specified in the contract.

b. Subsection 7 or subdivision a of this subsection do not prohibit the following

practices:

(1) In the case of any contract of life insurance or life annuity, paying bonuses

to policyholders or otherwise abating their premiums in whole or in part out

of surplus accumulated from nonparticipating insurance, provided that any

such bonuses or abatement of premiums are fair and equitable to

policyholders and for the best interests of the company and its

policyholders;

(2) In the case of life insurance policies issued on the industrial debit plan,

making allowance to policyholders who have continuously for a specified

period made premium payments directly to an office of the insurer in an

amount which fairly represents the saving in collection expenses; and

(3) Readjusting the rate of premium for a group insurance policy based on the

loss or expense experience thereunder, at the end of the first or any

subsequent policy year of insurance thereunder, which may be made

retroactive only for the policy year.

c. Notwithstanding any other provision in this subsection, if the cost does not

exceed an aggregate retail value of one hundred dollars per person per year, an

insurance producer may give a gift, prize, promotional article, logo merchandise,

meal, or entertainment activity directly or indirectly to a person in connection with

marketing, promoting, or advertising the business. As used in this subdivision,

"person" means the named insured, policy owner, or prospective client or the

spouse of any of these individuals, but the term does not include a certificate

holder, child, or employee of the named insured, policy owner, or prospective

client. Subject to the limits of this subdivision, an insurance producer may give a

gift card for specific merchandise or services such as a meal, gasoline, or car

wash but may not give cash, a cash card, any form of currency, or any refund or

discount in premium. An insurance producer may not condition the giving of a gift,

prize, promotion article, logo merchandise, meal, or entertainment activity on

obtaining a quote or a contract of insurance. Notwithstanding the limitation in this

subdivision, an insurance producer may conduct raffles or drawings, if there is no

financial cost to an entrant to participate, the drawing or raffle does not obligate a

participant to purchase insurance, the prizes are not valued in excess of a

reasonable amount determined by the commissioner, and the drawing or raffle is

open to the public. The raffle or drawing must be offered in a manner that is not

unfairly discriminatory and may not be contingent on the purchase, continued

purchase, or renewal of a policy. Notwithstanding the limitation in this subdivision,

an insurance producer may make a donation to a nonprofit organization that is

exempt from federal taxation under Internal Revenue Code section 501(c)(3)

[26 U.S.C. 501(c)(3)] in any amount as long as the donation is not given as an

inducement to obtain a contract of insurance.

d. The provisions in this subsection may not be construed as including within the

definition of discrimination or rebates any of the following practices:

(1) The offer or provision by an insurer or producer, by or through an employee,

an affiliate, or a third-party representative, of value-added products or

services at no or reduced cost if such products or services are not specified

in the policy of insurance if the product or service:

(a) Relates to the insurance coverage and is designed to satisfy one or

more of the following:

[1] Provide loss mitigation or loss control;

[2] Reduce claims costs or claim settlement costs;

[3] Provide education about liability risk or risk of loss to persons or

property;

[4] Monitor or assess risk, identify sources of risk, or develop

strategies for eliminating or reducing risk;

[5] Enhance health;

[6] Enhance financial wellness through items such as education of

financial planning services;

[7] Provide post-loss services;

[8] Incent behavioral changes to improve the health or reduce the

risk of death or disability of an individual defined as policyholder,

potential policyholder, certificate holder, potential certificate

holder, insured, potential insured, or applicant; or

[9] Assist in the administration of the employee or retiree benefit

insurance coverage.

(b) If offered by the insurer or producer, the insurer or producer, upon

request, shall ensure the person is provided with contact information

to assist the person with questions regarding the product or service.

(c) Is based on documented objective criteria and offered in a manner not

unfairly discriminatory. The documented criteria must be maintained

by the insurer or producer and produced at the request of the

commissioner.

(d) Is reasonable in comparison to that person's premiums or insurance

coverage for the policy class.

(2) If an insurer or producer does not have sufficient evidence, but has a good-

faith belief the product or service meets the criteria in paragraph 1 of

subdivision d of subsection 8, the insurer or producer may provide the

product or service in a manner that is not unfairly discriminatory as part of a

pilot or testing program for no longer than one year. An insurer or producer

shall notify the department of the pilot or testing program offered to

consumers in this state before launching and may proceed with the program

unless the department objects within twenty-one days of notice.

e. An insurer, producer, or representative of an insurer or producer may not offer or

provide insurance as an inducement to the purchase of another policy or

otherwise use of the words "free" or "no cost" or words of similar import in an

advertisement.

f. The commissioner may adopt regulations when implementing the permitted

practices set forth in this subsection to ensure consumer protection. Consistent

with applicable law, the topics addressed by the regulations may include

consumer data protections and privacy, consumer disclosure, and unfair

discrimination.

9. Unfair claim settlement practices. Committing any of the following acts, if done without

just cause and if performed with a frequency indicating a general business practice:

a. Knowingly misrepresenting to claimants pertinent facts or policy provisions

relating to coverages at issue.

b. Failing to acknowledge with reasonable promptness pertinent communications

with respect to claims arising under insurance policies.

c. Failing to adopt and implement reasonable standards for the prompt investigation

of claims arising under insurance policies.

d. Not attempting in good faith to effectuate prompt, fair, and equitable settlements

of claims submitted in which liability has become reasonably clear.

e. Compelling insureds to institute suits to recover amounts due under its policies by

offering substantially less than the amounts ultimately recovered in suits brought

by them when the insureds have made claims for amounts reasonably similar to

the amounts ultimately recovered.

f. Making known to insureds or claimants a policy of appealing from arbitration

awards in favor of insureds or claimants for the purpose of compelling them to

accept settlements or compromises less than the amount awarded in arbitration.

g. Attempting settlement or compromise of claims on the basis of applications which

were altered without notice to, or knowledge or consent of, insureds.

h. Attempting to settle a claim for less than the amount to which a reasonable

person would have believed one was entitled by reference to written or printed

advertising material accompanying or made a part of an application.

i. Attempting to delay the investigation or payment of claims by requiring an insured

and the insured's physician to submit a preliminary claim report and then

requiring the subsequent submission of formal proof of loss forms, both of which

submissions contain substantially the same information.

j. Failing to affirm or deny coverage of claims within a reasonable time after proof of

loss has been completed.

k. Refusing payment of claims solely on the basis of the insured's request to do so

without making an independent evaluation of the insured's liability based upon all

available information.

l. Providing coverage under a policy issued under chapter 26.1-45 or 26.1-36.1 for

confinement to a nursing home and refusing to pay a claim when a person is

covered by such a policy and the person's physician ordered confinement

pursuant to the terms of the policy for care other than custodial care. Custodial

care means care which is primarily for the purpose of meeting personal needs

without supervision by a registered nurse or a licensed practical nurse.

m. Failure to use the standard health insurance proof of loss and claim form or

failure to pay a health insurance claim as required by section 26.1-36-37.1.

It is not a prohibited practice for a health insurance company with participating provider

agreements to require that a subscriber or member using a nonparticipating provider

be responsible for providing the insurer a copy of medical records used for claims

processing.

10. Unfair handling of communications by insurance company. Failing to adopt and

implement reasonable standards for the prompt handling of written communications,

primarily expressing grievances, received by the insurance company from insureds or

claimants.

11. Refusing to insure risks. Refusing to insure risks solely because of race, color, creed,

sex, or national origin, or refusing to continue to insure risks solely because an

employer chooses to offer a health maintenance organization option to employees in

its health benefit plan.

12. Misrepresentation in insurance applications. Making false or fraudulent statements or

representations on or relative to an application for an insurance policy, for the purpose

of obtaining a fee, commission, money, or other benefit from any insurer, insurance

producer, or individual.

13. Failure to refund unearned premiums. Failing to refund within thirty days of the

cancellation of an insured's policy the unearned premium paid for that insurance

policy. However, for commercial lines of insurance policies which are audited by the

insurer to determine premium, the refund of premium must be made within thirty days

from the date the insurer receives from the insured that information which is

reasonably necessary for the insurer to audit the insured's business to determine the

premium due to the insurer.

14. As used in subsections 15, 16, 17, 18, and 19, unless the context otherwise requires:

a. "Entity" includes a third-party administrator, an insurance company as defined in

section 26.1-02-01, a health maintenance organization, or any other entity

providing a plan of health insurance subject to state insurance regulation.

b. "Health care provider" means a person that delivers, administers, or supervises

health care products or services, for profit or otherwise, in the ordinary course of

business or professional practice.

c. "Health plan" means any public or private plan or arrangement that provides or

pays the cost of health benefits, including any organization of health care

providers that furnishes health services under a contract or agreement with this

type of plan.

d. "Medical communication" means any communication, other than a knowing and

willful misrepresentation, made by a health care provider to a patient regarding

the health care needs or treatment options of the patient and the applicability of

the health plan to the patient's needs or treatment. The term includes

communications concerning:

(1) Tests, consultations, and treatment options;

(2) Risks or benefits associated with tests, consultations, and options;

(3) Variation in experience, quality, or outcome among any health care

providers or health care facilities providing any medical service;

(4) The process, basis, or standard used by an entity to determine whether to

authorize or deny health care services or benefits; and

(5) Financial incentives or disincentives based on service utilization provided by

an entity to a health care provider.

e. "Patient" includes a former, current, or prospective patient or the guardian or legal

representative of any former, current, or prospective patient.

15. a. Interference with certain medical communications. An entity offering a health plan

may not restrict or interfere with any medical communication and may not take

any of the following actions against a health care provider solely on the basis of a

medical communication:

(1) Refusal to contract with the health care provider;

(2) Termination of or refusal to renew a contract with the health care provider;

(3) Refusal to refer patients to or allow others to refer patients to the health care

provider; or

(4) Refusal to compensate the health care provider for covered services that

are medically necessary.

b. This subsection does not prohibit an entity from enforcing, as part of a contract or

agreement to which a health care provider is a party, any mutually agreed-upon

terms and conditions, including terms and conditions requiring a health care

provider to participate in and cooperate with all programs, policies, and

procedures developed or operated by a health plan to assure, review, or improve

the quality and effective utilization of health care services, if the utilization is

according to guidelines or protocols that are based on clinical or scientific

evidence and only if the guidelines or protocols under the utilization do not

prohibit or restrict medical communications between providers and their patients.

16. Unfair indemnification. A contract between an entity and a health care provider may

not require the health care provider to indemnify the entity for the entity's negligence,

willful misconduct, or breach of contract, and may not require a health care provider as

a condition of participation to waive any right to seek legal redress against the entity. In

addition to the proceedings and penalties provided in this chapter, a contract provision

violating this subsection is void.

17. Incentives to withhold medically necessary care. An entity may not offer a health care

provider, and a contract with a health care provider under a health plan may not

contain, an incentive plan that includes a specific payment made to, or withheld from,

the provider as an inducement to deny, reduce, limit, or delay medically necessary

care covered by the health plan and provided with respect to a patient. This subsection

does not prohibit incentive plans, including capitation payments or shared-risk

arrangements, that are not tied to specific medical decisions with respect to a patient.

In addition to the proceedings and penalties provided in this chapter, a contract

provision violating this subsection is void. As used in this subsection, "medically

necessary care" means health care services, supplies, or treatments that a reasonably

prudent physician or other health care provider would provide to a patient for the

prevention, diagnosis, or treatment of illness, injury, disease, or its symptoms which

are in accordance with generally accepted standards of medical practice, clinically

appropriate in terms of type, frequency, extent, site, and duration, and not primarily for

the convenience of the patient, physician, or other health care provider. This definition

does not preclude an entity from establishing a definition of "medically necessary care"

for determining which services are covered by the health plan.

18. Retaliation for patient advocacy. An entity may not take any of the following actions

against a health care provider solely because the provider, in good faith, reports to

state or federal authorities an act or practice by the entity that jeopardizes patient

health or welfare, or advocates on behalf of a patient in a utilization review program or

grievance procedure:

a. Refusal to contract with the health care provider;

b. Termination of or refusal to renew a contract with the health care provider;

c. Refusal to refer patients to or allow others to refer patients to the health care

provider; or

d. Refusal to compensate the health care provider for covered services that are

medically necessary.

19. Unfair reimbursement. An entity may not require that a health care provider receive

under a health plan, pursuant to policies of the entity or a contract with the health care

provider, the lowest payment for services and items that the health care provider

charges or receives from any other entity. In addition to the proceedings and penalties

provided in this chapter, a contract provision violating this subsection is void.

20. Unfair referral. An insurer, insurance producer, or third-party administrator referring an

individual employee to the association, or arranging for an individual employee to

apply to the association for the purpose of separating that employee from group health

insurance coverage provided in connection with the employee's employment.

21. Unfair compensation. Basing the compensation, including performance bonuses or

incentives, of claims employees or contracted claims personnel on the following:

a. The number of policies canceled.

b. The number of times coverage is denied.

c. Use of a quota limiting or restricting the number or volume of claims.

d. Use of an arbitrary quota or cap limiting or restricting the amount of claims

payments without due consideration to the merits of the claim.
N.D. Cent. Code § 26.1-29-26 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-26
26.1-29-26. Representations on information and belief
Status: in_force

26.1-29-26. Representations on information and belief

When a person insured has no personal knowledge of a fact, the person may repeat

information which that person has upon the subject and which that person believes to be true

with the explanation that that person does so on the information of others, or that person may

submit the information in its whole extent to the insurer. In neither case is the person

responsible for the truth of the representation unless it proceeds from an insurance producer of

the insured who has a duty to give the information.
N.D. Cent. Code § 26.1-06.1-01 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-01
26.1-06.1-01. Construction and purpose
Status: in_force

26.1-06.1-01. Construction and purpose

1. This chapter may not be interpreted to limit the powers granted the commissioner by

other provisions of the law.

2. This chapter must be liberally construed to effect the purpose stated in subsection 3.

3. The purpose of this chapter is the protection of the interests of insureds, claimants,

creditors, and the public generally; with minimum interference with the normal

prerogatives of the owners and managers of insurers, through:

a. Early detection of any potentially dangerous condition in an insurer, and prompt

application of appropriate corrective measures;

b. Improved methods for rehabilitating insurers, involving the cooperation and

management expertise of the insurance industry;

c. Enhanced efficiency and economy of liquidation, through clarification of the law,

to minimize legal uncertainty and litigation;

d. Equitable apportionment of any unavoidable loss;

e. Lessening the problems of interstate rehabilitation and liquidation by facilitating

cooperation between states in the liquidation process, and by extending the

scope of personal jurisdiction over debtors of the insurer outside this state;

f. Regulation of the insurance business by the impact of the law relating to

delinquency procedures and substantive rules on the entire insurance business;

and

g. Providing for a comprehensive scheme for the rehabilitation and liquidation of

insurance companies and those subject to this chapter as part of the regulation of

the business of insurance, insurance industry, and insurers in this state.

Proceedings in cases of insurer insolvency and delinquency are deemed an

integral aspect of the business of insurance and are of vital public interest and

concern.
N.D. Cent. Code § 26.1-17-19 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-19
26.1-17-19. Effects of health service contracts
Status: in_force

26.1-17-19. Effects of health service contracts

The issuance of a health service contract by a health service corporation to a subscriber

does not create the relationship of hospital and patient, physician and patient, dentist and

patient, practitioner and patient, or any other similar relationship between the corporation and

the subscriber. The subscriber at all times has the right to select any participating hospital,

physician, oral surgeon, dentist, practitioner, or health service provider, subject to the terms and

conditions of the contract. An employee, agent, officer, or member of the board of directors of

any such corporation may not influence or attempt to influence any subscriber in the choosing

and selecting of the hospital, physician, oral surgeon, dentist, practitioner, or other health

service provider who is to care for or treat the subscriber. A civil action arising out of the

relationship of hospital and patient, physician and patient, dentist and patient, practitioner and

patient, or health service provider and patient may not be maintained against any health service

corporation governed by this chapter. A participating practitioner has the right to engage in other

practice.
N.D. Cent. Code § 26.1-27-07 — ND Code / Title 26.1 / Chapter 26.1-27 / Section 26.1-27-07
26.1-27-07. Notification required
Status: in_force

26.1-27-07. Notification required

When the services of an administrator are used, the administrator shall provide a written

notice approved by the insurer, to insureds, advising them of the identity of and relationship

among the administrator, the policyholder, and the insurer. When an administrator collects

funds, it shall identify and state separately in writing to the person paying to the administrator

any charge or premium for insurance coverage the amount of any such charge or premium

specified by the insurer for the insurance coverage.
N.D. Cent. Code § 26.1-39.1-04 — ND Code / Title 26.1 / Chapter 26.1-39.1 / Section 26.1-39.1-04
26.1-39.1-04. Notice requirements
Status: in_force

26.1-39.1-04. Notice requirements

The only circumstance under which a certificate holder is entitled to the legal right to notice

of cancellation, nonrenewal, or any material change or any similar notice concerning a policy of

insurance is if the certificate holder has such notice rights under the terms of the policy or under

any endorsement to the policy. The terms and conditions of the notice, including the required

timing of the notice, are governed by the policy of insurance and may not be altered by a

certificate of insurance.