N.D. Cent. Code § 26.1-26.1-01 — ND Code / Title 26.1 / Chapter 26.1-26.1 / Section 26.1-26.1-01
26.1-26.1-01. Definitions
Status: in_force

26.1-26.1-01. Definitions

For the purposes of this chapter, an "independent insurance producer" means any licensed

property and casualty insurance producer representing a property and casualty insurance

company on an independent contractor basis and not as an employee. This term includes only

those producers not obligated by contract to place property and casualty insurance accounts

with any insurance company or group of companies. This chapter only applies to contracts

which have been in effect for more than one year between an independent insurance producer

and a property and casualty insurance company.
N.D. Cent. Code § 26.1-44-08 — ND Code / Title 26.1 / Chapter 26.1-44 / Section 26.1-44-08
26.1-44-08. Civil penalty for failure to file report of placement, endorsement, audit, cancellation, file annual tax statement, and pay tax - Action for recovery - Revocation of license - Conditions prerequisite to reissuance - Hearing procedure and judicial review
Status: in_force

26.1-44-08. Civil penalty for failure to file report of placement, endorsement, audit,

cancellation, file annual tax statement, and pay tax - Action for recovery - Revocation of

license - Conditions prerequisite to reissuance - Hearing procedure and judicial review.

1. A surplus lines producer is liable for a fine up to twenty-five dollars for each day of

delinquency, not to exceed the sum of five hundred dollars for each failure or refusal to

file, if the producer:

a. Fails or refuses to file the report of placement as required under section

26.1-44-02;

b. Fails or refuses to file the endorsement, audit, or cancellation as required under

section 26.1-44-06.1; or

c. Fails or refuses to make and file the annual tax statement or pay the tax no later

than March first as required under section 26.1-44-06.1.

2. The tax and fine may be recovered in an action to be instituted by the commissioner in

the name of the state, the attorney general representing the commissioner, in any

court of competent jurisdiction, and the fine, when so collected, must be paid to the

state treasurer and placed to the credit of the general fund. The commissioner, if

satisfied that the delay in filing the annual tax statement, report of placement,

endorsement, audit cancellation, or the payment of the tax was excusable, may waive

all or any part of the fine. The commissioner may revoke or suspend the surplus lines

producer's license if any surplus lines producer fails to make and file the annual tax

statement and pay the taxes, refuses to allow the commissioner to inspect and

examine the producer's records of the business transacted by the producer pursuant

to this chapter, or fails to keep the records in the manner required by the

commissioner.

3. If the license of a surplus lines producer is revoked, whether by the action of the

commissioner or by judicial proceedings, another license may not be issued to that

surplus lines producer until two years have elapsed from the effective date of the

revocation, nor until all taxes and fines are paid, nor until the commissioner is satisfied

that full compliance with this chapter will be had.
N.D. Cent. Code § 26.1-02.1-02.2 — ND Code / Title 26.1 / Chapter 26.1-02.1 / Section 26.1-02.1-02.2
26.1-02.1-02.2. Venue for filing criminal charges
Status: in_force

26.1-02.1-02.2. Venue for filing criminal charges

If a person commits a fraudulent insurance act or any crime associated with a fraudulent

insurance act, the venue for charging the crime may be any county in which the offense, any

element of the offense, or payment related to the offense was perpetrated, received, produced,

prepared, instigated, procured, promoted, or aided. If a person commits a fraudulent insurance

act and commits additional crimes in the commission of a fraudulent insurance act or as part of

a scheme associated with a fraudulent insurance act, venue need only be established for one

offense. All offenses associated with a fraudulent insurance act may be charged in the same

venue as established in one of the counts.
N.D. Cent. Code § 26.1-21-09.1 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-09.1
26.1-21-09.1. Bonds of agents appointed to distribute hunting and fishing licenses or stamps - Assessment - Determination of eligibility
Status: in_force

26.1-21-09.1. Bonds of agents appointed to distribute hunting and fishing licenses or

stamps - Assessment - Determination of eligibility.

The annual assessment for a bond of an agent appointed by the director of the game and

fish department to distribute hunting and fishing licenses or stamps pursuant to section

20.1-03-17 is ten dollars. The office may reduce or waive the assessment if the office

determines that funds received under this section are sufficient to cover potential claims on the

bonds of agents appointed to distribute hunting and fishing licenses or stamps. The office shall

determine the conditions and qualifications of agents bonded under this section. The minimum

amount of coverage under this section is fifteen thousand dollars per agent per year.
N.D. Cent. Code § 26.1-47-06 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-06
26.1-47-06. Rules
Status: in_force

26.1-47-06. Rules

The commissioner may adopt rules necessary to enforce and administer this chapter.
N.D. Cent. Code § 26.1-17.1-01 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-01
26.1-17.1-01. Definitions
Status: in_force

26.1-17.1-01. Definitions

As used in this chapter, unless otherwise defined in this chapter:

1. "Enrollee" means an individual, including dependents, who is entitled to limited health

services pursuant to a contract with an entity authorized to provide or arrange for such

services under this chapter.

2. "Evidence of coverage" means the certificate, agreement, or contract issued pursuant

to section 26.1-17.1-08 setting forth the coverage to which an enrollee is entitled.

3. "Limited health service" means dental care services, vision care services, mental

health services, substance abuse services, pharmaceutical services, podiatric care

services, and such other services as may be determined by the commissioner to be

limited health services. Limited health service may not include hospital, medical,

surgical, or emergency services except as such services are provided incident to the

limited health services set forth in the preceding sentence.

4. "Net equity" means the excess of total assets over total liabilities, excluding liabilities

which have been subordinated in a manner acceptable to the commissioner.

5. "Prepaid limited health service organization" means any corporation, partnership, or

other entity which, in return for a prepayment, undertakes to provide or arrange for the

provision of one or more limited health services to enrollees. Prepaid limited health

service organization does not include:

a. An entity otherwise authorized pursuant to the laws of this state either to provide

any limited health service on a prepayment or other basis or to indemnify for any

limited health service;

b. An entity that meets the requirements of section 26.1-17.1-06; or

c. A provider or entity when providing or arranging for the provision of limited health

services pursuant to a contract with a prepaid limited health service organization

or with an entity described in subdivision a or b.

6. "Provider" means any physician, dentist, health facility, or other person or institution

which is duly licensed or otherwise authorized to deliver or furnish limited health

services.

7. "Subscriber" means the person whose employment or other status, except for family

dependency, is the basis for entitlement to limited health services pursuant to a

contract with an entity authorized to provide or arrange for such services under this

chapter.

8. "Tangible net equity" means net equity reduced by the value assigned to intangible

assets including goodwill; going-concern value; organizational expense; startup costs;

long-term prepayments of deferred charges; nonreturnable deposits; and obligations of

officers, directors, owners, or affiliates, except short-term obligations of affiliates for

goods or services arising in the normal course of business which are payable on the

same terms as equivalent transactions with nonaffiliates and which are not past-due.

9. "Uncovered expense" means the cost of health care services that are the obligation of

a prepaid limited health services organization for which an enrollee may be liable in

the event of the insolvency of the organization and for which alternative arrangements

acceptable to the commissioner have not been made to cover the costs. Costs

incurred by a provider who has agreed in writing not to bill enrollees, except for

permissible supplemental charges, must be considered a covered expense.
N.D. Cent. Code § 26.1-26-46 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-46
26.1-26-46. License suspension or revocation - Duty of licensee
Status: repealed

26.1-26-46. License suspension or revocation - Duty of licensee

Repealed by S.L. 2023, ch. 282, § 9.
N.D. Cent. Code § 26.1-46-06 — ND Code / Title 26.1 / Chapter 26.1-46 / Section 26.1-46-06
26.1-46-06. Purchasing groups - Exemption from certain laws relating to the group purchase of insurance
Status: in_force

26.1-46-06. Purchasing groups - Exemption from certain laws relating to the group

purchase of insurance.

A purchasing group and its insurer or insurers is subject to all applicable laws of this state,

except that a purchasing group and its insurer or insurers are exempt, in regard to liability

insurance for the purchasing group, from any law that would:

1. Prohibit the establishment of a purchasing group.

2. Make it unlawful for an insurer to provide or offer to provide insurance on a basis

providing, to a purchasing group or its members, advantages based on their loss and

expense experience not afforded to other persons with respect to rates, policy forms,

coverages, or other matters.

3. Prohibit a purchasing group or its members from purchasing insurance on a group

basis described in subsection 2.

4. Prohibit a purchasing group from obtaining insurance on a group basis because the

group has not been in existence for a minimum period of time or because any member

has not belonged to the group for a minimum period of time.

5. Require that a purchasing group must have a minimum number of members, common

ownership or affiliation, or certain legal form.

6. Require that a certain percentage of a purchasing group must obtain insurance on a

group basis.

7. Otherwise discriminate against a purchasing group or any of its members.

8. Require that any insurance policy issued to a purchasing group or any of its members

be countersigned by an insurance producer residing in this state.
N.D. Cent. Code § 26.1-19-08 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-08
26.1-19-08. Contract forms
Status: in_force

26.1-19-08. Contract forms

1. All contracts or other documents evidencing coverage issued by the prepaid legal

services organization to participants and marketing documents purporting to describe

the organization's prepaid legal services plan must contain:

a. A complete description of the legal services to which the participant is entitled.

b. The predetermined periodic rate of payment for legal services, if any, which the

participant is obligated to pay.

c. All exclusions and limitations on services to be provided, including any deductible

or copayment feature and all restrictions relating to pre-existing conditions.

d. All criteria by which a participant may be disenrolled or denied re-enrollment.

2. A contract between a legal services organization authorized to do business under this

chapter and any provider or any participant may not contain any provisions which

require participants to guaranty payment, other than copayments and deductibles, to

the provider in the event of nonpayment by the legal services organization for any

covered services which have been performed under contracts between the participant

and the legal services organization.
N.D. Cent. Code § 26.1-26.6-07 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-07
26.1-26.6-07. Surrender of defendant prior to breach
Status: in_force

26.1-26.6-07. Surrender of defendant prior to breach

At any time before there has been a breach of the undertaking in any type of bail provided

herein, the surety or bail bond agent may surrender the defendant, or the defendant may

surrender, to the official to whose custody the defendant would have been given had the

defendant been committed. The defendant may be surrendered without the return of premium

for the bond if the defendant has been guilty of nonpayment of premium, changing address

without notifying the bail bond agent, self-concealment, or leaving the jurisdiction of the court

without the permission of the bail bond agent, or of violating the defendant's contract with the

bail bond agent in any way that does harm to the bail bond agent, or the surety, or violates the

obligation to the court. For the purpose of surrendering the defendant, the surety may arrest the

defendant before the forfeiture of the undertaking, or by written authority endorsed on a certified

copy of the undertaking, may empower any peace officer to make arrest, first paying the lawful

fees therefor.
N.D. Cent. Code § 26.1-36.3-06 — ND Code / Title 26.1 / Chapter 26.1-36.3 / Section 26.1-36.3-06
26.1-36.3-06. Availability of coverage
Status: in_force

26.1-36.3-06. Availability of coverage

1. a. As a condition of transacting business in this state with small employers, every

small employer carrier shall actively offer small employers all health benefit plans

it actively markets to small employers in this state.

b. (1) Subject to subdivision a of subsection 1, a small employer carrier shall issue

any health benefit plan to any eligible small employer that applies for the

plan and agrees to make the required premium payments and to satisfy the

other reasonable provisions of the health benefit plan not inconsistent with

this chapter and section 26.1-36-37.2. However, a carrier may not be

required to issue a health benefit plan to a self-employed individual who is

covered by, or is eligible for coverage under, a health benefit plan offered by

an employer.

(2) In the case of a small employer carrier that establishes more than one class

of business pursuant to section 26.1-36.3-03, the small employer carrier

shall maintain and issue to eligible small employers all health benefit plans it

actively markets to small employers. A small employer carrier may apply

reasonable criteria in determining whether to accept a small employer into a

class of business if the criteria are not intended to discourage or prevent

acceptance of small employers applying for a health benefit plan, are not

related to a health status-related factor of the small employer, and are

applied consistently to all small employers applying for coverage in the class

of business. The small employer carrier shall provide for the acceptance of

all eligible small employers into one or more classes of business. This

paragraph does not apply to a class of business into which the small

employer carrier is no longer enrolling new small businesses.

2. Health benefit plans covering small employers must comply with the following:

a. A health benefit plan may impose a pre-existing condition exclusion only if:

(1) The exclusion relates to a condition, regardless of the cause of the

condition, for which medical advice, diagnosis, care, or treatment was

recommended or received within the six-month period immediately

preceding the effective date of coverage;

(2) The exclusion extends for a period of not more than twelve months after the

effective date of coverage;

(3) The exclusion does not relate to pregnancy as a pre-existing condition; and

(4) The exclusion does not treat genetic information as a pre-existing condition

in the absence of a diagnosis of a condition related to such information.

b. A small employer carrier shall reduce any time period applicable to a pre-existing

condition exclusion or limitation period by the aggregate of periods the individual

was covered by qualifying previous coverage, if any, if the qualifying previous

coverage was continuous until at least sixty-three days prior to the effective date

of the new coverage. Any waiting period applicable to an individual for coverage

under a group health benefit plan may not be taken into account in determining

the period of continuous coverage. This subdivision does not preclude application

of an employer waiting period applicable to all new enrollees under the health

benefit plan. Small employer carriers shall credit coverage by either a standard

method or an alternative method. The commissioner shall adopt rules for

crediting coverage under the standard and alternative method. These rules must

be consistent with the Health Insurance Portability and Accountability Act of 1996

[Pub. L. 104-191; 110 Stat. 1936; 29 U.S.C. 1181 et seq.] and any federal rules

adopted pursuant thereto.

c. A health benefit plan may exclude coverage for late enrollees for the greater of

eighteen months or for an eighteen-month pre-existing condition exclusion;

however, if both a period of exclusion from coverage and a pre-existing condition

exclusion are applicable to a late enrollee, the combined period may not exceed

eighteen months from the date the individual enrolls for coverage under the

health benefit plan.

d. (1) Except as provided in this subdivision, a small employer carrier shall apply

requirements used to determine whether to provide coverage to a small

employer, including requirements for minimum participation of eligible

employees and minimum employer contributions, uniformly among all small

employers with the same number of eligible employees who are applying for

coverage or receiving coverage from the small employer carrier.

(2) A small employer carrier may vary application of minimum participation

requirements and minimum employer contribution requirements only by the

size of the small employer group.

(3) (a) Except as provided in subparagraph b, a small employer carrier, in

applying minimum participation requirements with respect to a small

employer, may not consider employees or dependents who have

qualifying existing coverage in determining whether the applicable

percentage of participation is met. For purposes of determining the

applicable percentage of participation under this subparagraph only,

individual health benefit plans are not included in the definition of

"qualifying existing coverage" under section 26.1-36.3-01.

(b) With respect to a small employer, with ten or fewer eligible employees,

a small employer carrier may consider employees or dependents who

have coverage under another health benefit plan sponsored by the

small employer in applying minimum participation requirements.

(4) A small employer carrier may not increase any requirement for minimum

employee participation or any requirement for minimum employer

contribution applicable to a small employer at any time after the small

employer has been accepted for coverage.

e. (1) If a small employer carrier offers coverage to a small employer, the small

employer carrier shall offer coverage to all of the eligible employees of a

small employer and their dependents. A small employer carrier may not offer

coverage only to certain individuals in a small employer group or only to part

of the group, except in the case of late enrollees as provided in

subdivision c.

(2) Except as permitted under subsection 1 and this subsection, a small

employer carrier may not modify a health benefit plan with respect to a small

employer or any eligible employee or dependent through riders,

endorsements, or otherwise, to restrict or exclude coverage for certain

diseases or medical conditions otherwise covered by the health benefit plan.

3. a. A small employer carrier offering coverage through a network plan is not required

to offer coverage or accept applications under subsection 1 to a small employer

if:

(1) The small employer does not have eligible individuals who live, work, or

reside in the service area for such network plan; or

(2) The small employer does have eligible individuals who live, work, or reside

in the service area for the network plan, but the carrier has demonstrated, if

required, to the commissioner that it will not have the capacity to deliver

services adequately to enrollees of any additional groups because of its

obligations to existing group contractholders and enrollees, and that it is

applying this paragraph uniformly to all employers without regard to the

claims experience of those employers and their employees and their

dependents or any health status-related factor relating to such employees

and dependents.

b. A small employer carrier, upon denying health insurance coverage in any service

area in accordance with paragraph 2 of subdivision a, may not offer coverage in

the small employer market within the service area for a period of one hundred

eighty days after the date the coverage is denied.

4. A small employer carrier is not required to provide coverage to small employers

pursuant to subsection 1 for any period of time for which the commissioner determines

that the carrier does not have the financial reserves to underwrite additional coverage

and is applying this section uniformly without regard to the claims experience of small

employers or any health status-related factor relating to employees and their

dependents. A small employer carrier denying coverage in accordance with this

section may not offer coverage in connection with a group health benefit plan in the

small group market for a period of one hundred eighty days after the health coverage

is denied or until the carrier has demonstrated to the commissioner sufficient financial

reserves to underwrite financial coverage, whichever is later.

5. Subsection 1 does not apply to health benefit plans offered by a small employer carrier

if the carrier makes the health benefit plans available in the small employer market

only through one or more associations.
N.D. Cent. Code § 26.1-40-25 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-25
26.1-40-25. Proof of insurance
Status: in_force

26.1-40-25. Proof of insurance

An insurer who issues a policy shall provide proof of insurance to the insured in the form of

written or electronic evidence of the policy's terms as to type, duration, and the vehicle covered

by the policy.
N.D. Cent. Code § 26.1-17.1-23 — ND Code / Title 26.1 / Chapter 26.1-17.1 / Section 26.1-17.1-23
26.1-17.1-23. Fees
Status: in_force

26.1-17.1-23. Fees

Every prepaid limited health service organization is subject to the fees set out in section

26.1-01-07.
N.D. Cent. Code § 26.1-36-41 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-41
26.1-36-41. Contract limitations
Status: in_force

26.1-36-41. Contract limitations

1. An insurance company as defined by section 26.1-02-01 issuing a health and accident

policy, a health maintenance organization, or any other entity providing a plan of health

insurance subject to state insurance regulation may not terminate a practitioner's

participating contract, designate a practitioner as nonpayable, or otherwise impose

sanctions on any practitioner solely for an excessive or inappropriate practice pattern

unless the requirements of this section are met. If a practitioner engages in an

excessive or inappropriate practice pattern for the practitioner's specialty, the entity

shall inform the practitioner, in writing, as to the manner in which the practitioner's

practice is excessive or inappropriate. The entity shall consult with the practitioner and

provide a reasonable time period of not less than six months within which to modify the

practitioner's practice pattern. If the excessive or inappropriate practice pattern

continues, the entity may impose reasonable sanctions on the practitioner, terminate

the practitioner's participating contract, or designate the practitioner as nonpayable. If

considered for sanction, termination, or nonpayable status, the affected practitioner

must first be given the opportunity to be present and to be heard by a committee

appointed by the entity which must include at least one representative of the

practitioner's specialty. The entity may not impose sanctions on a practitioner,

terminate a practitioner, or designate a practitioner as nonpayable in the absence of

the committee's recommendation to do so. All reports, practice profiles, data, and

proceedings of the entity relative to a practitioner who is sanctioned, terminated, or

considered for designation as nonpayable are confidential and may not be disclosed or

be subject to subpoena or other legal process. Nonpayable status under this section

may not commence until after appropriate notification to the entity's subscribers and

the affected practitioner. As used in this section, "practitioner" includes an optometrist,

a physician, a chiropractor, or an advanced registered nurse practitioner duly licensed

to practice in this state.

2. If the entity uses a practice profile as a factor to evaluate a practitioner's practice

pattern, the entity shall provide upon request of the practitioner at any time a

description of the criteria, data sources, and methodologies used to compile the

practice profile concerning the practitioner and the manner in which the practice profile

is used to evaluate the practitioner. An entity may not sanction a practitioner, terminate

a practitioner's participating contract, or designate a practitioner as nonpayable on the

basis of a practice profile without informing the practitioner of the specific data

underlying those findings. For purposes of this section, a "practice profile" means a

profile, summary, economic analysis, or other analysis of data concerning the cost,

quality, or quantity of services rendered by an individual practitioner, group of

practitioners, or preferred provider. In addition, an entity in developing practice profiles

or otherwise measuring practitioner performance shall:

a. Make severity adjustments, including allowances for the severity of illness or

condition of the patient mix and allowances for patients with multiple illnesses or

conditions;

b. Periodically evaluate, with input from specialty-specific practitioners as

appropriate, the quality and accuracy of practice profiles, data sources, and

methodologies;

c. Develop and implement safeguards to protect against the unauthorized use or

disclosure of practice profiles; and

d. Provide the opportunity for any practitioner at any time to examine the accuracy,

completeness, or validity of any practice profile concerning the practitioner and to

prepare a written response to the profile. The entity shall negotiate in good faith

with the practitioner to correct any inaccuracies or to make the profile complete. If

the inaccuracies or deficiencies are not corrected to the satisfaction of the

practitioner, the entity shall submit the written response prepared by the

practitioner along with the profile at the time the profile is used pursuant to

subsection 1 or provided to any third party consistent with section 26.1-36-12.4.

3. This section does not limit the authority of the commissioner to obtain from an insurer

information relating to an investigation of suspected or actual fraudulent insurance

acts.
N.D. Cent. Code § 26.1-10-06.2 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-06.2
26.1-10-06.2. Groupwide supervision of internationally active insurance groups
Status: in_force

26.1-10-06.2. Groupwide supervision of internationally active insurance groups

1. a. The commissioner may act as the groupwide supervisor for any internationally

active insurance group in accordance with this section. However, the

commissioner may otherwise acknowledge another regulatory official as the

groupwide supervisor if the internationally active insurance group:

(1) Does not have substantial insurance operations in the United States;

(2) Has substantial insurance operations in the United States but not in this

state; or

(3) Has substantial insurance operations in the United States and this state, but

the commissioner has determined under the factors set forth in

subsections 2 and 6 the other regulatory official is the appropriate

groupwide supervisor.

b. An insurance holding company system that does not otherwise qualify as an

internationally active insurance group may request the commissioner make a

determination or acknowledgment as to a groupwide supervisor under this

section.

2. In cooperation with other state, federal, and international regulatory agencies, the

commissioner shall identify a single groupwide supervisor for an internationally active

insurance group and may determine the commissioner is the appropriate groupwide

supervisor for an internationally active insurance group that conducts substantial

insurance operations concentrated in this state. However, the commissioner may

acknowledge a regulatory official from another jurisdiction is the appropriate groupwide

supervisor for the internationally active insurance group. The commissioner shall

consider the following factors when making a determination or acknowledgment under

this subsection:

a. The place of domicile of the insurers within the internationally active insurance

group which hold the largest share of the group's premiums, assets, or liabilities;

b. The place of domicile of the top-tiered insurers in the insurance holding company

system of the internationally active insurance group;

c. The location of the executive offices or largest operational offices of the

internationally active insurance group;

d. Whether another regulatory official is acting or is seeking to act as the groupwide

supervisor under a regulatory system the commissioner determines to be:

(1) Substantially similar to the system of regulation provided under the laws of

this state; or

(2) Otherwise sufficient in terms of providing for groupwide supervision,

enterprise risk analysis, and cooperation with other regulatory officials; and

e. Whether another regulatory official acting or seeking to act as the groupwide

supervisor provides the commissioner with reasonably reciprocal recognition and

cooperation. However, a commissioner identified under this section as the

groupwide supervisor may determine it is appropriate to acknowledge another

supervisor to serve as the groupwide supervisor. The acknowledgment of the

groupwide supervisor must be made after the consideration of the factors listed in

subdivisions a through e, and must be made in cooperation with and subject to

the acknowledgment of other regulatory officials involved with supervision of

members of the internationally active insurance group, and in consultation with

the internationally active insurance group.

3. a. Notwithstanding any other provision of law, when another regulatory official is

acting as the groupwide supervisor of an internationally active insurance group,

the commissioner shall acknowledge that regulatory official as the groupwide

supervisor unless the commissioner determines there has been a significant

material change in the internationally active insurance group that results in:

(1) The internationally active insurance group's insurers domiciled in this state

holding the largest share of the group's premiums, assets, or liabilities; or

(2) This state being the place of domicile of the top-tiered insurers in the

insurance holding company system of the internationally active insurance

group.

b. If such a material change has occurred, the commissioner shall make a

determination or acknowledgment as to the appropriate groupwide supervisor

under subsection 2.

4. Under section 26.1-10-06, the commissioner may collect from any insurer registered

under section 26.1-10-04 all information necessary to determine whether the

commissioner may act as the groupwide supervisor of an internationally active

insurance group or if the commissioner may acknowledge another regulatory official to

act as the groupwide supervisor. Before issuing a determination that an internationally

active insurance group is subject to groupwide supervision by the commissioner, the

commissioner shall notify the insurer registered under section 26.1-10-04 and the

ultimate controlling person within the internationally active insurance group. The

internationally active insurance group must be provided not less than thirty days to

provide the commissioner with additional information pertinent to the pending

determination. The commissioner shall publish on the commissioner's internet website

the identity of internationally active insurance groups the commissioner has

determined are subject to groupwide supervision by the commissioner.

5. If the commissioner is the groupwide supervisor for an internationally active insurance

group, the commissioner may engage in any of the following groupwide supervision

activities:

a. Assess the enterprise risks within the internationally active insurance group to

ensure:

(1) The material financial condition and liquidity risks to the members of the

internationally active insurance group which are engaged in the business of

insurance are identified by management; and

(2) Reasonable and effective mitigation measures are in place.

b. Request, from any member of an internationally active insurance group subject to

the commissioner's supervision, information necessary and appropriate to assess

enterprise risk, including information about the members of the internationally

active insurance group regarding:

(1) Governance, risk assessment, and management;

(2) Capital adequacy; and

(3) Material intercompany transactions.

c. Coordinate and, through the authority of the regulatory officials of the jurisdictions

where members of the internationally active insurance group are domiciled,

compel development and implementation of reasonable measures designed to

ensure the internationally active insurance group is able to timely recognize and

mitigate enterprise risks to members of that internationally active insurance

groups which are engaged in the business of insurance.

d. Communicate with other state, federal, and international regulatory agencies for

members within the internationally active insurance group and share relevant

information subject to the confidentiality provisions of section 26.1-10-07 through

supervisory colleges as set forth in section 26.1-10-06.1 or otherwise.

e. Enter agreements with or obtain documentation from any insurer registered under

section 26.1-10-04; any member of the internationally active insurance group;

and any other state, federal, and international regulatory agency for members of

the internationally active insurance group, providing the basis for or otherwise

clarifying the commissioner's role as groupwide supervisor, including provisions

for resolving disputes with other regulatory officials. The agreement or

documentation may not serve as evidence in any proceeding any insurer or

person within an insurance holding company system not domiciled or

incorporated in this state is doing business in this state or is otherwise subject to

jurisdiction in this state.

f. Other groupwide supervision activities, consistent with the authorities and

purposes enumerated in this section, as considered necessary by the

commissioner.

6. If the commissioner acknowledges another regulatory official from a jurisdiction that is

not accredited by the national association of insurance commissioners is the

groupwide supervisor, the commissioner may cooperate reasonably, through

supervisory colleges or otherwise, with groupwide supervision undertaken by the

groupwide supervisor, provided:

a. The commissioner's cooperation is in compliance with the laws of this state; and

b. The regulatory official acknowledged as the groupwide supervisor also

recognizes and cooperates with the commissioner's activities as a groupwide

supervisor for other internationally active insurance groups as applicable. If such

recognition and cooperation is not reasonably reciprocal, the commissioner may

refuse recognition and cooperation.

7. The commissioner may enter an agreement with or obtain documentation from any

insurer registered under section 26.1-10-04; any affiliate of the insurer; and other state,

federal, and international regulatory agency for members of the internationally active

insurance group which provide the basis for or otherwise clarify a regulatory official's

role as groupwide supervisor.

8. The commissioner may adopt rules necessary for the administration of this section.

9. A registered insurer subject to this section is liable for and shall pay the reasonable

expenses of the commissioner's participation in the administration of this section,

including the engagement of an attorney, actuary, and any other professional and all

reasonable travel expenses.
N.D. Cent. Code § 26.1-47-05 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-05
26.1-47-05. General requirements
Status: in_force

26.1-47-05. General requirements

Health care insurers complying with this chapter are subject to all other applicable laws,

rules, and regulations of this state.
N.D. Cent. Code § 26.1-06.1-38 — ND Code / Title 26.1 / Chapter 26.1-06.1 / Section 26.1-06.1-38
26.1-06.1-38. Disputed claims
Status: in_force

26.1-06.1-38. As soon as practicable, the liquidator shall present to the court a report

of the claims against the insurer along with the recommendations of the liquidator. The

report must include the name and address of each claimant and the amount of the

claim finally recommended, if any. If the insurer has issued annuities or life insurance

policies, the liquidator shall report the persons to whom, according to the records of

the insurer, amounts are owed as cash surrender values or other investment value and

the amounts owed.

2. The court may approve, disapprove, or modify the report on claims by the liquidator.

The reports which are not modified by the court within a period of sixty days following

submission by the liquidator must be treated by the liquidator as allowed claims,

subject thereafter to later modification or to rulings made by the court pursuant to

section 26.1-06.1-38. No claim under a policy of insurance may be allowed for an

amount in excess of the applicable policy limits.
N.D. Cent. Code § 26.1-23.1-06 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-06
26.1-23.1-06. Pool reserve records confidential - Open records
Status: in_force

26.1-23.1-06. Pool reserve records confidential - Open records

1. Information regarding that portion of the funds or liability reserves of a government

self-insured pool established for purposes of satisfying a specific claim or cause of

action is confidential. A person is not entitled to discover that portion of the funds or

liability reserves established for purposes of satisfying a claim or cause of action,

except that the reserve is discoverable in any supplementary or ancillary proceeding to

enforce a judgment against the pool or a governmental entity participating in the pool.

2. Unless otherwise provided by law, a government self-insurance pool record, as

defined under section 44-04-17.1, is subject to chapter 44-04.
N.D. Cent. Code § 26.1-36.7-04 — ND Code / Title 26.1 / Chapter 26.1-36.7 / Section 26.1-36.7-04
26.1-36.7-04. Board of directors
Status: in_force

26.1-36.7-04. Board of directors

1. The association is governed by the board of directors of the reinsurance association of

North Dakota.

2. The board consists of the state health officer, one senator appointed by the majority

leader of the senate of the legislative assembly, one representative appointed by the

speaker of the house of representatives of the legislative assembly, one individual from

each of the four insurers of the association with the highest annual market share as

determined by annual market share reports of health benefit plans provided by the

commissioner annually, and two nonvoting members from the insurance department

appointed by the commissioner.

3. Members of the board may be reimbursed from the moneys of the association for

expenses incurred by the members due to their service as board members, but may

not otherwise be compensated by the association for board services.

4. The costs of conducting the meetings of the association and the board are borne by

the association.

5. For cause, the commissioner may remove any board member representing one of the

four insurers.
N.D. Cent. Code § 26.1-26-37 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-37
26.1-26-37. Lost, stolen, or destroyed license - Issuance of duplicate
Status: repealed

26.1-26-37. Lost, stolen, or destroyed license - Issuance of duplicate

Repealed by S.L. 2023, ch. 282, § 9.
N.D. Cent. Code § 26.1-12-26 — ND Code / Title 26.1 / Chapter 26.1-12 / Section 26.1-12-26
26.1-12-26. Advance to mutual insurance company - Repayment - Reporting - Commission or promotion expense
Status: in_force

26.1-12-26. Advance to mutual insurance company - Repayment - Reporting -

Commission or promotion expense.

Any director, officer, or member of a mutual insurance company, or any other person, may

advance to the company any sum of money necessary for the purpose of its business or to

enable it to comply with any of the requirements of the law, and such moneys, together with any

interest agreed upon, but not exceeding the maximum contract rate, is not a liability or claim

against the company or any of its assets and may be repaid only out of the surplus earnings of

the company. A commission or promotional expense may not be paid in connection with the

advance to the company. The amount of any advance must be reported in each annual

statement.
N.D. Cent. Code § 26.1-02-32 — ND Code / Title 26.1 / Chapter 26.1-02 / Section 26.1-02-32
26.1-02-32. Electronic notices and documents
Status: in_force

26.1-02-32. Electronic notices and documents

1. As used in this section:

a. "Delivered by electronic means" includes:

(1) Delivery to an electronic mail address at which a party has consented to

receive notices or documents; or

(2) Posting on an electronic network or site accessible via the internet, mobile

application, computer, mobile device, tablet, or other electronic device,

together with separate notice to a party directed to the electronic mail

address at which the party has consented to receive notice of the posting.

b. "Party" means a recipient of a notice or document required as part of an

insurance transaction, including an applicant, insured, or policyholder.

2. Subject to the requirements of this section, any notice to a party or any other

document required under applicable law in an insurance transaction or any other

document that is to serve as evidence of insurance coverage may be delivered,

stored, and presented by electronic means if the notice or document meets the

requirements of chapter 9-16.

3. Delivery of a notice or document in accordance with this section is equivalent to any

delivery method required under applicable law, including delivery by first class mail;

first class mail, postage prepaid; or registered mail.

4. A notice or document may be delivered by electronic means by an insurer to a party

under this section if the following requirements are met:

a. The party has affirmatively consented to the electronic method of delivery and

has not withdrawn the consent.

b. The party, before giving consent, is provided with a clear and conspicuous

statement informing the party of the following:

(1) The right of the party at any time to withdraw consent to have a notice or

document delivered by electronic means and any conditions or

consequences imposed if consent is withdrawn.

(2) The means, after consent is given, by which a party may obtain a paper

copy of a notice or document delivered by electronic means.

(3) The procedure a party shall follow to withdraw consent to have a notice or

document delivered by electronic means and to update the party's electronic

mail address.

c. The party:

(1) Before giving consent, is provided with a statement of the hardware and

software requirements for access to and retention of a notice or document

delivered by electronic means; and

(2) Consents electronically, or confirms consent electronically, in a manner that

demonstrates the party can access information in the electronic form that

will be used for notices or documents delivered by electronic means as to

which the party has given consent.

d. After the party has given consent, if a change in the hardware or software

requirements needed to access or retain a notice or document delivered by

electronic means creates a material risk that the party will not be able to access

or retain a subsequent notice or document to which the consent applies, the

insurer shall provide the party with a statement of the revised hardware and

software requirements which complies with subdivision b.

e. The insurer has provided a copy of the notice or document to the party's

insurance producer by electronic means or regular mail.

5. This section does not affect requirements related to content or timing of any notice or

document required under applicable law.

6. If a provision of this title or applicable law requiring a notice or document to be

provided to a party expressly requires verification or acknowledgment of receipt of the

notice or document, the notice or document may be delivered by electronic means

only if the electronic method used provides for verification or acknowledgment of

receipt.

7. The legal effectiveness, validity, or enforceability of any insurance contract or policy

executed by a party may not be denied solely because of the failure to obtain

electronic consent or confirmation of consent of the party in accordance with

paragraph 2 of subdivision c of subsection 4.

8. A withdrawal of consent by a party does not affect the legal effectiveness, validity, or

enforceability of a notice or document delivered by electronic means to the party

before the withdrawal of consent is effective.

9. A withdrawal of consent by a party is effective within a reasonable time, not to exceed

five days, after receipt of the withdrawal by the insurer.

10. This section does not apply to a notice or document delivered before August 1, 2019,

by an insurer in an electronic form to a party that, before that date, has consented to

receive notices or documents in an electronic form otherwise allowed by law.

11. If the consent of a party to receive certain notices or documents in an electronic form

is on file with an insurer before August 1, 2019, and pursuant to this section, an insurer

intends to deliver additional notices or documents to the party in an electronic form,

then before delivering those additional notices or documents electronically, the insurer

shall provide the insured with a statement describing:

a. The notices or documents that must be delivered by electronic means under this

section which were not previously delivered electronically; and

b. The party's right to withdraw consent to have notices or documents delivered by

electronic means.

12. Except as otherwise provided by law, if an oral communication or a recording of an

oral communication from a party can be reliably stored and reproduced by an insurer,

the oral communication or recording may qualify as a notice or document delivered by

electronic means for purposes of this section.

13. If a provision of this title or applicable law requires a signature, notice, or document to

be notarized, acknowledged, verified, or made under oath, the requirement is satisfied

if the electronic signature of the individual authorized to perform those acts, together

with all other information required to be included by the provision, is attached to or

logically associated with the signature, notice, or document.

14. This section may not be construed to modify, limit, or supersede the provisions of the

federal Electronic Signatures in Global and National Commerce Act

[15 U.S.C. ch. 7001 et seq.].
N.D. Cent. Code § 26.1-39.2-07 — ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-07
26.1-39.2-07. Violation of the chapter
Status: in_force

26.1-39.2-07. Violation of the chapter

A contract entered with a residential contractor is void if the residential contractor violates

this chapter.
N.D. Cent. Code § 26.1-03.1-10 — ND Code / Title 26.1 / Chapter 26.1-03.1 / Section 26.1-03.1-10
26.1-03.1-10. Foreign insurers
Status: in_force

26.1-03.1-10. Foreign insurers

1. Upon the written request of the commissioner, any foreign insurer shall submit to the

commissioner a risk-based capital report as of the end of the calendar year just ended,

the later of:

a. The date a risk-based capital report would be required to be filed by a domestic

insurer under this chapter; or

b. Fifteen days after the request is received by the foreign insurer.

At the written request of the commissioner, any foreign insurer shall promptly submit to

the commissioner a copy of any risk-based capital plan that is filed with the insurance

commissioner of another state.

2. In the event of a company action level event, regulatory action level event, or

authorized control level event, with respect to any foreign insurer as determined under

the risk-based capital statute applicable in the state of domicile of the insurer, or, if no

risk-based capital provision is in force in that state, under the provisions of this

chapter, if the insurance commissioner of the state of domicile of the foreign insurer

fails to require the foreign insurer to file a risk-based capital plan in the manner

specified under that state's risk-based capital statute, or, if no risk-based capital

provision is in force in the state, the commissioner may require the foreign insurer to

file a risk-based capital plan with the commissioner under section 26.1-03.1-03. In

such event, the failure of the foreign insurer to file a risk-based capital plan with the

commissioner is grounds to order the insurer to cease and desist from writing new

insurance business in this state.

3. In the event of a mandatory control level event with respect to any foreign insurer, if no

domiciliary receiver has been appointed with respect to the foreign insurer under the

rehabilitation and liquidation statute applicable in the state of domicile of the foreign

insurer, the commissioner may make application to the district court permitted under

section 26.1-06.1-04 with respect to the liquidation of property of foreign insurers

found in this state, and the occurrence of the mandatory control level event is

adequate grounds for the application.
N.D. Cent. Code § 26.1-35-05 — ND Code / Title 26.1 / Chapter 26.1-35 / Section 26.1-35-05
26.1-35-05. Reserve valuation method - Life insurance and endowment benefits
Status: in_force

26.1-35-05. Reserve valuation method - Life insurance and endowment benefits

1. Except as otherwise provided in sections 26.1-35-06, 26.1-35-09, and 26.1-35-11,

reserves according to the commissioners reserve valuation method, for the life

insurance and endowment benefits of policies providing for a uniform amount of

insurance and requiring the payment of uniform premiums, must be the excess, if any,

of the present value, at the date of valuation, of the future guaranteed benefits

provided for by those policies, over the then present value of any future modified net

premiums for the policies. The modified net premiums for a policy must be the uniform

percentage of the respective contract premiums for the benefits that the present value,

at the date of issue of the policy, of all the modified net premiums equals the sum of

the present value of the benefits provided by the policy and the excess of subdivision a

over subdivision b as follows:

a. A net level annual premium equal to the present value, at the date of issue, of the

benefits provided for after the first policy year, divided by the present value, at the

date of issue, of an annuity of one per year payable on the first and each

subsequent anniversary of the policy on which a premium falls due. However, the

net level annual premium may not exceed the net level annual premium on the

nineteen-year premium whole life plan for insurance of the same amount at an

age one year higher than the age at issue of the policy.

b. A net one-year term premium for the benefits provided in the first policy year.

2. For a life insurance policy issued after December 31, 1986, for which the contract

premium in the first policy year exceeds that of the second year and for which no

comparable additional benefit is provided in the first year for the excess and which

provides an endowment benefit or a cash surrender value or a combination thereof in

an amount greater than the excess premium, the reserve according to the

commissioners reserve valuation method as of any policy anniversary occurring on or

before the assumed ending date, which is defined as the first policy anniversary on

which the sum of any endowment benefit and any cash surrender value then available

is greater than the excess premium, except as otherwise provided in section

26.1-35-09, must be the greater of the reserve as of the policy anniversary calculated

as described in this section and the reserve as of the policy anniversary calculated as

described in this section, but with the value defined in subsection 1 being reduced by

fifteen percent of the amount of such excess first year premium; all present values of

benefits and premiums being determined without reference to premiums or benefits

provided for by the policy after the assumed ending date; the policy being assumed to

mature on such date as an endowment; and the cash surrender value provided on that

date being considered as an endowment benefit. In making the above comparison, the

mortality and interest bases stated in sections 26.1-35-02 and 26.1-35-04 must be

used.

3. Reserves according to the commissioners reserve valuation method must be

calculated by a method consistent with the principles as described in this section for:

a. Life insurance policies providing a varying amount of insurance or requiring the

payment of varying premiums;

b. Group annuity and pure endowment contracts purchased under a retirement plan

or plan of deferred compensation, established or maintained by an employer,

including a partnership, limited liability company, or sole proprietorship, or by an

employee organization, or by both, other than a plan providing individual

retirement accounts or individual retirement annuities under section 408 of the

federal Internal Revenue Code, as amended;

c. Disability and accidental death benefits in all policies and contracts; and

d. All other benefits, except life insurance and endowment benefits in life insurance

policies and benefits provided by all other annuity and pure endowment contracts.
N.D. Cent. Code § 26.1-26-38 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-38
26.1-26-38. Controlled business prohibited - Definition - Formula for determination
Status: repealed

26.1-26-38. Controlled business prohibited - Definition - Formula for determination

Repealed by S.L. 2001, ch. 262, § 136.
N.D. Cent. Code § 26.1-22-07 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-07
26.1-22-07. Certain property of state and of Bank of North Dakota excepted
Status: repealed

26.1-22-07. Certain property of state and of Bank of North Dakota excepted

Repealed by S.L. 1989, ch. 357, § 3.
N.D. Cent. Code § 26.1-03.2-04 — ND Code / Title 26.1 / Chapter 26.1-03.2 / Section 26.1-03.2-04
26.1-03.2-04. Regulatory action level event
Status: in_force

26.1-03.2-04. Regulatory action level event

1. "Regulatory action level event" means, with respect to a health organization, any of the

following events:

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

that the health organization'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. Notification by the commissioner to a health organization of an adjusted

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

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

under section 26.1-03.2-07;

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

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

notification by the commissioner to the health organization that the commissioner,

after a hearing, has rejected the health organization's challenge;

d. The failure of the health organization to file a risk-based capital report by the filing

date, unless the health organization has provided an explanation for the failure

which is satisfactory to the commissioner and has cured the failure within ten

days after the filing date;

e. The failure of the health organization to submit a risk-based capital plan to the

commissioner within the time period set forth in subsection 3 of section

26.1-03.2-03;

f. Notification by the commissioner to the health organization that:

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

the health organization is, in the judgment of the commissioner,

unsatisfactory; and

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

health organization, provided the health organization has not challenged the

determination under section 26.1-03.2-07;

g. If, pursuant to section 26.1-03.2-07, the health organization challenges a

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

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

has rejected the challenge;

h. Notification by the commissioner to the health organization that the health

organization 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 health organization 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 health

organization has not challenged the determination under section 26.1-03.2-07; or

i. If, pursuant to section 26.1-03.2-07, the health organization challenges a

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

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

has rejected the challenge.

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

a. Require the health organization 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 health organization, 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 such

corrective actions as the commissioner determines are required.

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

commissioner deems relevant with respect to the health organization risk based upon

the commissioner's examination or analysis of the assets, liabilities, and operations of

the health organization, 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 health organization challenges an adjusted risk-based capital report

pursuant to section 26.1-03.2-07 and the challenge is not frivolous in the

judgment of the commissioner, within forty-five days after the notification to the

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

health organization's challenge; or

c. If the health organization challenges a revised risk-based capital plan pursuant to

section 26.1-03.2-07 and the challenge is not frivolous in the judgment of the

commissioner, within forty-five days after the notification to the health

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

organization's challenge.

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

as may be necessary in the judgment of the commissioner to review the health

organization's risk-based capital plan or revised risk-based capital plan, examine or

analyze the assets, liabilities, and operations, including contractual relationships, of

the health organization and formulate the corrective order with respect to the health

organization. The fees, costs, and expenses relating to consultants must be borne by

the affected health organization or such other party as directed by the commissioner.
N.D. Cent. Code § 26.1-17-33 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-33
26.1-17-33. Liquidation - Dissolution - Merger - Consolidation
Status: in_force

26.1-17-33. Liquidation - Dissolution - Merger - Consolidation

Any involuntary liquidation and dissolution of a health service corporation is governed by

chapter 26.1-07. Any voluntary liquidation and dissolution is governed by chapter 10-33. Any

merger or consolidation of a health service corporation is subject to the approval of the

commissioner in accordance with the procedures set forth in chapter 26.1-07, but the

consolidation or merger must be accomplished under chapter 10-33.
N.D. Cent. Code § 26.1-26-05 — ND Code / Title 26.1 / Chapter 26.1-26 / Section 26.1-26-05
26.1-26-05. Unlicensed person - Effect - Agent for insurer
Status: in_force

26.1-26-05. Unlicensed person - Effect - Agent for insurer

A person not licensed as an insurance producer or surplus lines insurance producer who

sells, solicits, or negotiates an insurance policy on behalf of an insurer is an insurance producer

within the intent of this chapter and is liable for all the duties, requirements, liabilities, and

penalties to which an insurance producer of the insurer is subject. An insurer accepting

business from an unlicensed person through any of its officers, insurance producers, or

employees thereby acknowledges that person as an insurance producer acting on its behalf in

the transaction.
N.D. Cent. Code § 26.1-21-09 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-09
26.1-21-09. Premiums - Amount to whom paid - Minimum
Status: repealed

26.1-21-09. Premiums - Amount to whom paid - Minimum

Repealed by S.L. 2025, ch. 274, § 19.
N.D. Cent. Code § 26.1-26.3-03 — ND Code / Title 26.1 / Chapter 26.1-26.3 / Section 26.1-26.3-03
26.1-26.3-03. Required contract provisions
Status: in_force

26.1-26.3-03. Required contract provisions

No individual, partnership, corporation, or limited liability company acting in the capacity of a

managing general agent may place business with an insurer unless there is in force a written

contract between the parties which sets forth the responsibilities of each party and when both

parties share responsibility for a particular function, specifies the division of the responsibilities,

and which contains the following minimum provisions:

1. The insurer may terminate the contract for cause upon written notice to the managing

general agent. The insurer may suspend the underwriting authority of the managing

general agent during the pendency of any dispute regarding the cause for termination.

2. The managing general agent will render accounts to the insurer detailing all

transactions and remit all funds due under the contract to the insurer on not less than

a monthly basis.

3. All funds collected for the account of an insurer will be held by the managing general

agent in a fiduciary capacity in a bank which is a member of the federal reserve

system. This account must be used for all payments on behalf of the insurer. The

managing general agent may retain no more than three months estimated claims

payments and allocated loss adjustment expenses.

4. Separate records of business written by the managing general agent will be

maintained. The insurer shall have access and right to copy all accounts and records

related to its business in a form usable by the insurer and the commissioner shall have

access to all books, bank accounts, and records of the managing general agent in a

form usable to the commissioner.

5. The contract may not be assigned in whole or in part by the managing general agent.

6. Appropriate underwriting guidelines, including:

a. The maximum annual premium volume;

b. The basis of the rates to be charged;

c. The types of risks which may be written;

d. Maximum limits of liability;

e. Applicable exclusions;

f. Territorial limitations;

g. Policy cancellation provisions; and

h. The maximum policy period.

The insurer has the right to cancel or nonrenew any policy of insurance subject to the

applicable laws and rules concerning the cancellation and nonrenewal of insurance

policies.

7. If the contract permits the managing general agent to settle claims on behalf of the

insurer:

a. All claims must be reported to the company in a timely manner.

b. A copy of the claim file must be sent to the insurer at its request or as soon as it

becomes known that the claim:

(1) Has the potential to exceed an amount determined by the commissioner or

exceeds the limit set by the company, whichever is less;

(2) Involves a coverage dispute;

(3) May exceed the managing general agent's claims settlement authority;

(4) Is open for more than six months; or

(5) Is closed by payment of an amount set by the commissioner or an amount

set by the company, whichever is less.

c. All claims files will be the joint property of the insurer and managing general

agent. However, upon an order of liquidation of the insurer, the files become the

sole property of the insurer or its estate. The managing general agent shall have

reasonable access to and the right to copy the files on a timely basis.

d. Any settlement authority granted to the managing general agent may be

terminated for cause upon the insurer's written notice to the managing general

agent or upon the termination of the contract. The insurer may suspend the

settlement authority during the pendency of any dispute regarding the cause for

termination.

8. If electronic claims files are in existence, the contract must address the timely

transmission of the data.

9. If the contract provides for a sharing of interim profits by the managing general agent,

and the managing general agent has the authority to determine the amount of the

interim profits by establishing loss reserves or controlling claim payments, or in any

other manner, interim profits will not be paid to the managing general agent until one

year after they are earned for property insurance business and five years after they

are earned on casualty business and not until the profits have been verified pursuant

to section 26.1-26.3-04.

10. The managing general agent may not:

a. Bind reinsurance or retrocessions on behalf of the insurer, except that the

managing general agent may bind facultative reinsurance contracts pursuant to

obligatory facultative agreements if the contract with the insurer contains

reinsurance underwriting guidelines including, for both reinsurance assumed and

ceded, a list of reinsurers with which such automatic agreements are in effect, the

coverages, and amounts or percentages that may be reinsured and commission

schedules.

b. Commit the insurer to participate in insurance or reinsurance syndicates.

c. Appoint any insurance producer without assuring that the insurance producer is

licensed in the appropriate lines of insurance.

d. Without prior approval of the insurer, pay or commit the insurer to pay a claim

over a specified amount, net of reinsurance, which may not exceed one percent

of the insurer's policyholder's surplus as of December thirty-first of the last

completed calendar year.

e. Collect any payment from a reinsurer or commit the insurer to any claim

settlement with a reinsurer without prior approval of the insurer. If prior approval is

given, a report must be promptly forwarded to the insurer.

f. Permit its subagent to serve on the insurer's board of directors.

g. Jointly employ an individual who is employed with the insurer.

h. Appoint a submanaging general agent.
N.D. Cent. Code § 26.1-12.2-08 — ND Code / Title 26.1 / Chapter 26.1-12.2 / Section 26.1-12.2-08
26.1-12.2-08. Effective date of plan of conversion
Status: in_force

26.1-12.2-08. Effective date of plan of conversion

A plan of conversion is effective when the commissioner has approved the plan of

conversion, the voting members have approved the plan of conversion and adopted the

certificate of incorporation of the converted stock company, and the certificate of incorporation is

filed in the office of the secretary of state of this state.
N.D. Cent. Code § 26.1-15.1-06 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-06
26.1-15.1-06. Qualifications for membership
Status: in_force

26.1-15.1-06. Qualifications for membership

1. A society shall specify in its laws or rules:

a. Eligibility standards for each class of membership, provided that if benefits are

provided on the lives of children, the minimum age for adult membership must be

set at not less than age fifteen and not greater than age twenty-one.

b. The process for admission to membership for each membership class.

c. The rights and privileges of each membership class, provided that only benefit

members may vote on the management of the insurance affairs of the society.

2. A society may also admit social members who have no voice or vote in the

management of the insurance affairs of the society.

3. Membership rights in the society are personal to the member and are not assignable.
N.D. Cent. Code § 26.1-23.1-08 — ND Code / Title 26.1 / Chapter 26.1-23.1 / Section 26.1-23.1-08
26.1-23.1-08. Government self-insurance pool - Report
Status: in_force

26.1-23.1-08. Government self-insurance pool - Report

A government self-insurance pool organized under this chapter shall provide a report to the

legislative management by September thirtieth of each even-numbered year. The report must

include information on activities of the pool, including the claims activity, claims payment history,

balances, a history of complaints, and executive staff and board compensation.
N.D. Cent. Code § 26.1-59-01 — ND Code / Title 26.1 / Chapter 26.1-59 / Section 26.1-59-01
26.1-59-01. Interstate insurance product regulation compact
Status: repealed

26.1-59-01. Interstate insurance product regulation compact

ARTICLE I - PURPOSES

The purposes of this compact are, through means of joint and cooperative action among the

compacting states:

1. To promote and protect the interest of consumers of individual and group annuity, life

insurance, disability income, and long-term care insurance products;

2. To develop uniform standards for insurance products covered under the compact;

3. To establish a central clearinghouse to receive and provide prompt review of insurance

products covered under the compact and, in certain cases, advertisements related

thereto, submitted by insurers authorized to do business in one or more compacting

states;

4. To give appropriate regulatory approval to those product filings and advertisements

satisfying the applicable uniform standard;

5. To improve coordination of regulatory resources and expertise between state

insurance departments regarding the setting of uniform standards and review of

insurance products covered under the compact;

6. To create the interstate insurance product regulation commission; and

7. To perform these and such other related functions as may be consistent with the state

regulation of the business of insurance.

ARTICLE II - DEFINITIONS

For purposes of this compact:

1. "Advertisement" means any material designed to create public interest in a product, or

induce the public to purchase, increase, modify, reinstate, borrow on, surrender,

replace, or retain a policy, as more specifically defined in the rules and operating

procedures of the commission.

2. "Bylaws" mean those bylaws established by the commission for its governance, or for

directing or controlling the commission's actions or conduct.

3. "Compacting state" means any state which has enacted this compact legislation and

which has not withdrawn pursuant to subsection 1 of article XIV, or been terminated

pursuant to subsection 2 of article XIV.

4. "Commission" means the "interstate insurance product regulation commission"

established by this compact.

5. "Commissioner" means the chief insurance regulatory official of a state including, but

not limited to commissioner, superintendent, director, or administrator.

6. "Domiciliary state" means the state in which an insurer is incorporated or organized;

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

7. "Insurer" means any entity licensed by a state to issue contracts of insurance for any

of the lines of insurance covered by this chapter.

8. "Member" means the person chosen by a compacting state as its representative to the

commission, or his or her designee.

9. "Noncompacting state" means any state which is not at the time a compacting state.

10. "Operating procedures" mean procedures promulgated by the commission

implementing a rule, uniform standard, or a provision of this compact.

11. "Product" means the form of a policy or contract, including any application,

endorsement, or related form which is attached to and made a part of the policy or

contract, and any evidence of coverage or certificate, for an individual or group

annuity, life insurance, disability income, or long-term care insurance product that an

insurer is authorized to issue.

12. "Rule" means a statement of general or particular applicability and future effect

promulgated by the commission, including a uniform standard developed pursuant to

article VII of this compact, designed to implement, interpret, or prescribe law or policy,

or describing the organization, procedure, or practice requirements of the commission,

which shall have the force and effect of law in the compacting states.

13. "State" means any state, district, or territory of the United States of America.

14. "Third-party filer" means an entity that submits a product filing to the commission on

behalf of an insurer.

15. "Uniform standard" means a standard adopted by the commission for a product line,

pursuant to article VII of this compact, and shall include all of the product requirements

in aggregate; provided, that each uniform standard shall be construed, whether

express or implied, to prohibit the use of any inconsistent, misleading, or ambiguous

provisions in a product and the form of the product made available to the public shall

not be unfair, inequitable, or against public policy as determined by the commission.

ARTICLE III - ESTABLISHMENT OF THE COMMISSION AND VENUE

1. The compacting states hereby create and establish a joint public agency known as the

"interstate insurance product regulation commission". Pursuant to article IV, the

commission will have the power to develop uniform standards for product lines,

receive and provide prompt review of products filed therewith, and give approval to

those product filings satisfying applicable uniform standards, provided, it is not

intended for the commission to be the exclusive entity for receipt and review of

insurance product filings. Nothing herein shall prohibit any insurer from filing its

product in any state wherein the insurer is licensed to conduct the business of

insurance; and any such filing shall be subject to the laws of the state where filed.

2. The commission is a body corporate and politic, and an instrumentality of the

compacting states.

3. The commission is solely responsible for its liabilities except as otherwise specifically

provided in this compact.

4. Venue is proper and judicial proceedings by or against the commission shall be

brought solely and exclusively in a court of competent jurisdiction where the principal

office of the commission is located.

ARTICLE IV - POWERS OF THE COMMISSION

The commission shall have the following powers:

1. To promulgate rules, pursuant to article VII of this compact, which shall have the force

and effect of law and shall be binding in the compacting states to the extent and in the

manner provided in this compact;

2. To exercise its rulemaking authority and establish reasonable uniform standards for

products covered under the compact, and advertisement related thereto, which shall

have the force and effect of law and shall be binding in the compacting states, but only

for those products filed with the commission, provided, that a compacting state shall

have the right to opt-out of such uniform standard pursuant to article VII, to the extent

and in the manner provided in this compact, and, provided further, that any uniform

standard established by the commission for long-term care insurance products may

provide the same or greater protections for consumers as, but shall not provide less

than, those protections set forth in the national association of insurance

commissioners' long-term care insurance model act and long-term care insurance

model regulation, respectively, adopted as of 2001. The commission shall consider

whether any subsequent amendments to the national association of insurance

commissioners' long-term care insurance model act or long-term care insurance model

regulation adopted by the national association of insurance commissioners require

amending of the uniform standards established by the commission for long-term care

insurance products;

3. To receive and review in an expeditious manner products filed with the commission,

and rate filings for disability income and long-term care insurance products, and give

approval of those products and rate filings that satisfy the applicable uniform standard,

where such approval shall have the force and effect of law and be binding on the

compacting states to the extent and in the manner provided in the compact;

4. To receive and review in an expeditious manner advertisement relating to long-term

care insurance products for which uniform standards have been adopted by the

commission, and give approval to all advertisement that satisfies the applicable

uniform standard. For any product covered under this compact, other than long-term

care insurance products, the commission shall have the authority to require an insurer

to submit all or any part of its advertisement with respect to that product for review or

approval prior to use, if the commission determines that the nature of the product is

such that an advertisement of the product could have the capacity or tendency to

mislead the public. The actions of the commission as provided in this section shall

have the force and effect of law and shall be binding in the compacting states to the

extent and in the manner provided in the compact;

5. To exercise its rulemaking authority and designate products and advertisement that

may be subject to a self-certification process without the need for prior approval by the

commission;

6. To promulgate operating procedures, pursuant to article VII of this compact, which

shall be binding in the compacting states to the extent and in the manner provided in

this compact;

7. To bring and prosecute legal proceedings or actions in its name as the commission,

provided, that the standing of any state insurance department to sue or be sued under

applicable law shall not be affected;

8. To issue subpoenas requiring the attendance and testimony of witnesses and the

production of evidence;

9. To establish and maintain offices;

10. To purchase and maintain insurance and bonds;

11. To borrow, accept, or contract for services of personnel, including, but not limited to,

employees of a compacting state;

12. To hire employees, professionals, or specialists, and elect or appoint officers, and to fix

their compensation, define their duties, and give them appropriate authority to carry

out the purposes of the compact, and determine their qualifications; and to establish

the commission's personnel policies and programs relating to, among other things,

conflicts of interest, rates of compensation, and qualifications of personnel;

13. To accept any and all appropriate donations and grants of money, equipment,

supplies, materials, and services, and to receive, utilize, and dispose of the same,

provided that at all times the commission shall strive to avoid any appearance of

impropriety;

14. To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold,

improve, or use any property, real, personal, or mixed, provided that at all times the

commission shall strive to avoid any appearance of impropriety;

15. To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of

any property, real, personal, or mixed;

16. To remit filing fees to compacting states as may be set forth in the bylaws, rules, or

operating procedures;

17. To enforce compliance by compacting states with rules, uniform standards, operating

procedures, and bylaws;

18. To provide for dispute resolution among compacting states;

19. To advise compacting states on issues relating to insurers domiciled or doing business

in noncompacting jurisdictions, consistent with the purposes of this compact;

20. To provide advice and training to those personnel in state insurance departments

responsible for product review, and to be a resource for state insurance departments;

21. To establish a budget and make expenditures;

22. To borrow money;

23. To appoint committees, including advisory committees comprising members, state

insurance regulators, state legislators or their representatives, insurance industry and

consumer representatives, and such other interested persons as may be designated in

the bylaws;

24. To provide and receive information from, and to cooperate with, law enforcement

agencies;

25. To adopt and use a corporate seal; and

26. To perform such other functions as may be necessary or appropriate to achieve the

purposes of this compact consistent with the state regulation of the business of

insurance.

ARTICLE V - ORGANIZATION OF THE COMMISSION

1. Membership, voting, and bylaws.

a. Each compacting state shall have and be limited to one member. Each member

shall be qualified to serve in that capacity pursuant to applicable law of the

compacting state. Any member may be removed or suspended from office as

provided by the law of the state from which he or she shall be appointed. Any

vacancy occurring in the commission shall be filled in accordance with the laws of

the compacting state wherein the vacancy exists. Nothing herein shall be

construed to affect the manner in which a compacting state determines the

election or appointment and qualification of its own commissioner.

b. Each member shall be entitled to one vote and shall have an opportunity to

participate in the governance of the commission in accordance with the bylaws.

Notwithstanding any provision herein to the contrary, no action of the commission

with respect to the promulgation of a uniform standard shall be effective unless

two-thirds of the members vote in favor thereof.

c. The commission shall, by a majority of the members, prescribe bylaws to govern

its conduct as may be necessary or appropriate to carry out the purposes, and

exercise the powers, of the compact, including, but not limited to:

(1) Establishing the fiscal year of the commission;

(2) Providing reasonable procedures for appointing and electing members, as

well as holding meetings, of the management committee;

(3) Providing reasonable standards and procedures:

a. For the establishment and meetings of other committees; and

b. Governing any general or specific delegation of any authority or

function of the commission;

(4) Providing reasonable procedures for calling and conducting meetings of the

commission that consists of a majority of commission members, ensuring

reasonable advance notice of each such meeting and providing for the right

of citizens to attend each such meeting with enumerated exceptions

designed to protect the public's interest, the privacy of individuals, and

insurers' proprietary information, including trade secrets. The commission

may meet in camera only after a majority of the entire membership votes to

close a meeting en toto or in part. As soon as practicable, the commission

must make public:

a. A copy of the vote to close the meeting revealing the vote of each

member with no proxy votes allowed; and

b. Votes taken during such meeting;

(5) Establishing the titles, duties, and authority and reasonable procedures for

the election of the officers of the commission;

(6) Providing reasonable standards and procedures for the establishment of the

personnel policies and programs of the commission. Notwithstanding any

civil service or other similar laws of any compacting state, the bylaws shall

exclusively govern the personnel policies and programs of the commission;

(7) Promulgating a code of ethics to address permissible and prohibited

activities of commission members and employees; and

(8) Providing a mechanism for winding up the operations of the commission and

the equitable disposition of any surplus funds that may exist after the

termination of the compact after the payment and/or reserving of all of its

debts and obligations.

d. The commission shall publish its bylaws in a convenient form and file a copy

thereof and a copy of any amendment thereto, with the appropriate agency or

officer in each of the compacting states.

2. Management committee, officers, and personnel.

a. A management committee comprising no more than fourteen members shall be

established as follows:

(1) One member from each of the six compacting states with the largest

premium volume for individual and group annuities, life, disability income,

and long-term care insurance products, determined from the records of the

national association of insurance commissioners for the prior year;

(2) Four members from those compacting states with at least two percent of the

market based on the premium volume described above, other than the six

compacting states with the largest premium volume, selected on a rotating

basis as provided in the bylaws; and

(3) Four members from those compacting states with less than two percent of

the market, based on the premium volume described above, with one

selected from each of the four zone regions of the national association of

insurance commissioners as provided in the bylaws.

b. The management committee shall have such authority and duties as may be set

forth in the bylaws, including but not limited to:

(1) Managing the affairs of the commission in a manner consistent with the

bylaws and purposes of the commission;

(2) Establishing and overseeing an organizational structure within, and

appropriate procedures for, the commission to provide for the creation of

uniform standards and other rules, receipt and review of product filings,

administrative and technical support functions, review of decisions regarding

the disapproval of a product filing, and the review of elections made by a

compacting state to opt-out of a uniform standard, provided that a uniform

standard shall not be submitted to the compacting states for adoption unless

approved by two-thirds of the members of the management committee;

(3) Overseeing the offices of the commission; and

(4) Planning, implementing, and coordinating communications and activities

with other state, federal, and local government organizations in order to

advance the goals of the commission.

c. The commission shall elect annually officers from the management committee,

with each having such authority and duties, as may be specified in the bylaws.

d. The management committee may, subject to the approval of the commission,

appoint or retain an executive director for such period, upon such terms and

conditions and for such compensation as the commission may deem appropriate.

The executive director shall serve as secretary to the commission, but shall not

be a member of the commission. The executive director shall hire and supervise

such other staff as may be authorized by the commission.

3. Legislative and advisory committees.

a. A legislative committee comprising state legislators or their designees shall be

established to monitor the operations of, and make recommendations to, the

commission, including the management committee, provided that the manner of

selection and term of any legislative committee member shall be as set forth in

the bylaws. Prior to the adoption by the commission of any uniform standard,

revision to the bylaws, annual budget, or other significant matter as may be

provided in the bylaws, the management committee shall consult with and report

to the legislative committee.

b. The commission shall establish two advisory committees, one of which shall

comprise consumer representatives independent of the insurance industry, and

the other comprising insurance industry representatives.

c. The commission may establish additional advisory committees as its bylaws may

provide for the carrying out of its functions.

4. Corporate records of the commission. The commission shall maintain its corporate

books and records in accordance with the bylaws.

5. Qualified immunity, defense, and indemnification.

a. The members, officers, executive director, employees, and representatives of the

commission shall be immune from suit and liability, either personally or in their

official capacity, for any claim for damage to or loss of property or personal injury

or other civil liability caused by or arising out of any actual or alleged act, error, or

omission that occurred, or that the person against whom the claim is made had a

reasonable basis for believing occurred within the scope of commission

employment, duties, or responsibilities, provided that nothing in this subdivision

shall be construed to protect any such person from suit and/or liability for any

damage, loss, injury, or liability caused by the intentional or willful and wanton

misconduct of that person.

b. The commission shall defend any member, officer, executive director, employee,

or representative of the commission in any civil action seeking to impose liability

arising out of any actual or alleged act, error, or omission that occurred within the

scope of commission employment, duties, or responsibilities, or that the person

against whom the claim is made had a reasonable basis for believing occurred

within the scope of commission employment, duties, or responsibilities, provided

that nothing herein shall be construed to prohibit that person from retaining his or

her own counsel, and provided further that the actual or alleged act, error, or

omission did not result from that person's intentional or willful and wanton

misconduct.

c. The commission shall indemnify and hold harmless any member, officer,

executive director, employee, or representative of the commission for the amount

of any settlement or judgment obtained against that person arising out of any

actual or alleged act, error, or omission that occurred within the scope of

commission employment, duties, or responsibilities, or that such person had a

reasonable basis for believing occurred within the scope of commission

employment, duties, or responsibilities, provided that the actual or alleged act,

error, or omission did not result from the intentional or willful and wanton

misconduct of that person.

ARTICLE VI - MEETINGS AND ACTS OF THE COMMISSION

1. The commission shall meet and take such actions as are consistent with the

provisions of this compact and the bylaws.

2. Each member of the commission shall have the right and power to cast a vote to which

that compacting state is entitled and to participate in the business and affairs of the

commission. A member shall vote in person or by such other means as provided in the

bylaws. The bylaws may provide for members' participation in meetings by telephone

or other means of communication.

3. The commission shall meet at least once during each calendar year. Additional

meetings shall be held as set forth in the bylaws.

ARTICLE VII - RULES AND OPERATING PROCEDURES - RULEMAKING FUNCTIONS OF

THE COMMISSION AND OPTING OUT OF UNIFORM STANDARDS

1. Rulemaking authority. The commission shall promulgate reasonable rules, including

uniform standards, and operating procedures in order to effectively and efficiently

achieve the purposes of this compact. Notwithstanding the foregoing, in the event the

commission exercises its rulemaking authority in a manner that is beyond the scope of

the purposes of this chapter, or the powers granted hereunder, then such an action by

the commission shall be invalid and have no force and effect.

2. Rulemaking procedure. Rules and operating procedures shall be made pursuant to a

rulemaking process that conforms to the model state administrative procedure act of

1981 as amended, as may be appropriate to the operations of the commission. Before

the commission adopts a uniform standard, the commission shall give written notice to

the relevant state legislative committee(s) in each compacting state responsible for

insurance issues of its intention to adopt the uniform standard. The commission in

adopting a uniform standard shall consider fully all submitted materials and issue a

concise explanation of its decision.

3. Effective date and opt-out of a uniform standard. A uniform standard shall become

effective ninety days after its promulgation by the commission or such later date as the

commission may determine; provided, however, that a compacting state may opt-out

of a uniform standard as provided in this article. "Opt-out" shall be defined as any

action by a compacting state to decline to adopt or participate in a promulgated

uniform standard. All other rules and operating procedures, and amendments thereto,

shall become effective as of the date specified in each rule, operating procedure, or

amendment.

4. Opt-out procedure.

a. A compacting state may opt-out of a uniform standard, either by legislation or

regulation duly promulgated by the insurance department under the compacting

state's administrative procedure act. If a compacting state elects to opt-out of a

uniform standard by regulation, it must give written notice to the commission no

later than ten business days after the uniform standard is promulgated, or at the

time the state becomes a compacting state and must find that the uniform

standard does not provide reasonable protections to the citizens of the state,

given the conditions in the state. The commissioner shall make specific findings

of fact and conclusions of law, based on a preponderance of the evidence,

detailing the conditions in the state which warrant a departure from the uniform

standard and determining that the uniform standard would not reasonably protect

the citizens of the state. The commissioner must consider and balance the

following factors and find that the conditions in the state and needs of the citizens

of the state outweigh the intent of the legislature to participate in, and the benefits

of, an interstate agreement to establish national uniform consumer protections for

the products subject to this chapter and the presumption that a uniform standard

adopted by the commission provides reasonable protections to consumers of the

relevant product. Notwithstanding the foregoing, a compacting state may, at the

time of its enactment of this compact, prospectively opt-out of all uniform

standards involving long-term care insurance products by expressly providing for

such opt-out in the enacted compact, and such an opt-out shall not be treated as

a material variance in the offer or acceptance of any state to participate in this

compact. Such an opt-out shall be effective at the time of enactment of this

compact by the compacting state and shall apply to all existing uniform standards

involving long-term care insurance products and those subsequently

promulgated.

b. In accordance with subdivision a, North Dakota opts out of all existing and

prospective uniform standards involving long-term care insurance products in

order to preserve North Dakota's statutory requirements governing long-term care

insurance products.

5. Effect of opt-out. If a compacting state elects to opt-out of a uniform standard, the

uniform standard shall remain applicable in the compacting state electing to opt-out

until such time the opt-out legislation is enacted into law or the regulation opting out

becomes effective. Once the opt-out of a uniform standard by a compacting state

becomes effective as provided under the laws of that state, the uniform standard shall

have no further force and effect in that state unless and until the legislation or

regulation implementing the opt-out is repealed or otherwise becomes ineffective

under the laws of the state. If a compacting state opts out of a uniform standard after

the uniform standard has been made effective in that state, the opt-out shall have the

same prospective effect as provided under article XIV for withdrawals.

6. Stay of uniform standard. If a compacting state has formally initiated the process of

opting out of a uniform standard by regulation, and while the regulatory opt-out is

pending, the compacting state may petition the commission, at least fifteen days

before the effective date of the uniform standard, to stay the effectiveness of the

uniform standard in that state. The commission may grant a stay if it determines the

regulatory opt-out is being pursued in a reasonable manner and there is a likelihood of

success. If a stay is granted or extended by the commission, the stay or extension

thereof may postpone the effective date by up to ninety days, unless affirmatively

extended by the commission, provided a stay may not be permitted to remain in effect

for more than one year unless the compacting state can show extraordinary

circumstances which warrant a continuance of the stay, including, but not limited to,

the existence of a legal challenge which prevents the compacting state from opting

out. A stay may be terminated by the commission upon notice that the rulemaking

process has been terminated.

7. Not later than thirty days after a rule or operating procedure is promulgated, any

person may file a petition for judicial review of the rule or operating procedure,

provided that the filing of such a petition shall not stay or otherwise prevent the rule or

operating procedure from becoming effective unless the court finds that the petitioner

has a substantial likelihood of success. The court shall give deference to the actions of

the commission consistent with applicable law and shall not find the rule or operating

procedure to be unlawful if the rule or operating procedure represents a reasonable

exercise of the commission's authority.

ARTICLE VIII - COMMISSION RECORDS AND ENFORCEMENT

1. The commission shall promulgate rules establishing conditions and procedures for

public inspection and copying of its information and official records, except such

information and records involving the privacy of individuals and insurers' trade secrets.

The commission may promulgate additional rules under which it may make available

to federal and state agencies, including law enforcement agencies, records, and

information otherwise exempt from disclosure, and may enter into agreements with

such agencies to receive or exchange information or records subject to nondisclosure

and confidentiality provisions.

2. Except as to privileged records, data, and information, the laws of any compacting

state pertaining to confidentiality or nondisclosure shall not relieve any compacting

state commissioner of the duty to disclose any relevant records, data, or information to

the commission, provided that disclosure to the commission shall not be deemed to

waive or otherwise affect any confidentiality requirement, and further provided that,

except as otherwise expressly provided in this chapter, the commission shall not be

subject to the compacting state's laws pertaining to confidentiality and nondisclosure

with respect to records, data, and information in its possession. Confidential

information of the commission shall remain confidential after such information is

provided to any commissioner.

3. The commission shall monitor compacting states for compliance with duly adopted

bylaws, rules, including uniform standards, and operating procedures. The commission

shall notify any noncomplying compacting state in writing of its noncompliance with

commission bylaws, rules, or operating procedures. If a noncomplying compacting

state fails to remedy its noncompliance within the time specified in the notice of

noncompliance, the compacting state shall be deemed to be in default as set forth in

article XIV.

4. The commissioner of any state in which an insurer is authorized to do business, or is

conducting the business of insurance, shall continue to exercise his or her authority to

oversee the market regulation of the activities of the insurer in accordance with the

provisions of the state's law. The commissioner's enforcement of compliance with the

compact is governed by the following provisions:

a. With respect to the commissioner's market regulation of a product or

advertisement that is approved or certified to the commission, the content of the

product or advertisement shall not constitute a violation of the provisions,

standards, or requirements of the compact except upon a final order of the

commission, issued at the request of a commissioner after prior notice to the

insurer and an opportunity for hearing before the commission.

b. Before a commissioner may bring an action for violation of any provision,

standard, or requirement of the compact relating to the content of an

advertisement not approved or certified to the commission, the commission, or an

authorized commission officer or employee, must authorize the action. However,

authorization pursuant to this subdivision does not require notice to the insurer,

opportunity for hearing, or disclosure of requests for authorization or records of

the commission's action on such requests.

ARTICLE IX - DISPUTE RESOLUTION

The commission shall attempt, upon the request of a member, to resolve any disputes or

other issues that are subject to this compact and which may arise between two or more

compacting states, or between compacting states and noncompacting states, and the

commission shall promulgate an operating procedure providing for resolution of such disputes.

ARTICLE X - PRODUCT FILING AND APPROVAL

1. Insurers and third-party filers seeking to have a product approved by the commission

shall file the product with, and pay applicable filing fees to, the commission. Nothing in

this chapter shall be construed to restrict or otherwise prevent an insurer from filing its

product with the insurance department in any state wherein the insurer is licensed to

conduct the business of insurance, and such filing shall be subject to the laws of the

states where filed.

2. The commission shall establish appropriate filing and review processes and

procedures pursuant to commission rules and operating procedures. Notwithstanding

any provision herein to the contrary, the commission shall promulgate rules to

establish conditions and procedures under which the commission will provide public

access to product filing information. In establishing such rules, the commission shall

consider the interests of the public in having access to such information, as well as

protection of personal medical and financial information and trade secrets, that may be

contained in a product filing or supporting information.

3. Any product approved by the commission may be sold or otherwise issued in those

compacting states for which the insurer is legally authorized to do business.

ARTICLE XI - REVIEW OF COMMISSION DECISIONS REGARDING FILINGS

1. Not later than thirty days after the commission has given notice of a disapproved

product or advertisement filed with the commission, the insurer or third-party filer

whose filing was disapproved may appeal the determination to a review panel

appointed by the commission. The commission shall promulgate rules to establish

procedures for appointing such review panels and provide for notice and hearing. An

allegation that the commission, in disapproving a product or advertisement filed with

the commission, acted arbitrarily, capriciously, or in a manner that is an abuse of

discretion or otherwise not in accordance with the law, is subject to judicial review in

accordance with subsection 4 of article III.

2. The commission shall have authority to monitor, review, and reconsider products and

advertisement subsequent to their filing or approval upon a finding that the product

does not meet the relevant uniform standard. Where appropriate, the commission may

withdraw or modify its approval after proper notice and hearing, subject to the appeal

process in subsection 1.

ARTICLE XII - FINANCE

1. The commission shall pay or provide for the payment of the reasonable expenses of

its establishment and organization. To fund the cost of its initial operations, the

commission may accept contributions and other forms of funding from the national

association of insurance commissioners, compacting states, and other sources.

Contributions and other forms of funding from other sources shall be of such a nature

that the independence of the commission concerning the performance of its duties

shall not be compromised.

2. The commission shall collect a filing fee from each insurer and third-party filer filing a

product with the commission to cover the cost of the operations and activities of the

commission and its staff in a total amount sufficient to cover the commission's annual

budget.

3. The commission's budget for a fiscal year shall not be approved until it has been

subject to notice and comment as set forth in article VII of this compact.

4. The commission shall be exempt from all taxation in and by the compacting states.

5. The commission shall not pledge the credit of any compacting state, except by and

with the appropriate legal authority of that compacting state.

6. The commission shall keep complete and accurate accounts of all its internal receipts,

including grants and donations, and disbursements of all funds under its control. The

internal financial accounts of the commission shall be subject to the accounting

procedures established under its bylaws. The financial accounts and reports including

the system of internal controls and procedures of the commission shall be audited

annually by an independent certified public accountant. Upon the determination of the

commission, but no less frequently than every three years, the review of the

independent auditor shall include a management and performance audit of the

commission. The commission shall make an annual report to the governor and

legislature of the compacting states, which shall include a report of the independent

audit. The commission's internal accounts shall not be confidential and such materials

may be shared with the commissioner of any compacting state upon request provided,

however, that any work papers related to any internal or independent audit and any

information regarding the privacy of individuals and insurers' proprietary information,

including trade secrets, shall remain confidential.

7. No compacting state shall have any claim to or ownership of any property held by or

vested in the commission or to any commission funds held pursuant to the provisions

of this compact.

ARTICLE XIII - COMPACTING STATES, EFFECTIVE DATE, AND AMENDMENT

1. Any state is eligible to become a compacting state.

2. The compact shall become effective and binding upon legislative enactment of the

compact into law by two compacting states, provided the commission shall become

effective for purposes of adopting uniform standards for, reviewing, and giving

approval or disapproval of products filed with the commission that satisfy applicable

uniform standards only after twenty-six states are compacting states or, alternatively,

by states representing greater than forty percent of the premium volume for life

insurance, annuity, disability income, and long-term care insurance products, based on

records of the national association of insurance commissioners for the prior year.

Thereafter, it shall become effective and binding as to any other compacting state

upon enactment of the compact into law by that state.

3. Amendments to the compact may be proposed by the commission for enactment by

the compacting states. No amendment shall become effective and binding upon the

commission and the compacting states unless and until all compacting states enact

the amendment into law.

ARTICLE XIV - WITHDRAWAL, DEFAULT, AND TERMINATION

1. Withdrawal.

a. Once effective, the compact shall continue in force and remain binding upon each

and every compacting state, provided that a compacting state may withdraw from

the compact ("withdrawing state") by enacting a statute specifically repealing the

statute which enacted the compact into law.

b. The effective date of withdrawal is the effective date of the repealing statute.

However, the withdrawal shall not apply to any product filings approved or

self-certified, or any advertisement of such products, on the date the repealing

statute becomes effective, except by mutual agreement of the commission and

the withdrawing state unless the approval is rescinded by the withdrawing state

as provided in subdivision e.

c. The commissioner of the withdrawing state shall immediately notify the

management committee in writing upon the introduction of legislation repealing

this compact in the withdrawing state.

d. The commission shall notify the other compacting states of the introduction of

such legislation within ten days after its receipt of notice thereof.

e. The withdrawing state is responsible for all obligations, duties, and liabilities

incurred through the effective date of withdrawal, including any obligations, the

performance of which extend beyond the effective date of withdrawal, except to

the extent those obligations may have been released or relinquished by mutual

agreement of the commission and the withdrawing state. The commission's

approval of products and advertisement prior to the effective date of withdrawal

shall continue to be effective and be given full force and effect in the withdrawing

state, unless formally rescinded by the withdrawing state in the same manner as

provided by the laws of the withdrawing state for the prospective disapproval of

products or advertisement previously approved under state law.

f. Reinstatement following withdrawal of any compacting state shall occur upon the

effective date of the withdrawing state reenacting the compact.

2. Default.

a. If the commission determines that any compacting state has at any time defaulted

("defaulting state") in the performance of any of its obligations or responsibilities

under this compact, the bylaws or duly promulgated rules or operating

procedures, then, after notice and hearing as set forth in the bylaws, all rights,

privileges, and benefits conferred by this compact on the defaulting state shall be

suspended from the effective date of default as fixed by the commission. The

grounds for default include, but are not limited to, failure of a compacting state to

perform its obligations or responsibilities, and any other grounds designated in

commission rules. The commission shall immediately notify the defaulting state in

writing of the defaulting state's suspension pending a cure of the default. The

commission shall stipulate the conditions and the time period within which the

defaulting state must cure its default. If the defaulting state fails to cure the

default within the time period specified by the commission, the defaulting state

shall be terminated from the compact and all rights, privileges, and benefits

conferred by this compact shall be terminated from the effective date of

termination.

b. Product approvals by the commission or product self-certifications, or any

advertisement in connection with such product, that are in force on the effective

date of termination shall remain in force in the defaulting state in the same

manner as if the defaulting state had withdrawn voluntarily pursuant to

subsection 1.

c. Reinstatement following termination of any compacting state requires a

reenactment of the compact.

3. Dissolution of compact.

a. The compact dissolves effective upon the date of the withdrawal or default of the

compacting state which reduces membership in the compact to one compacting

state.

b. Upon the dissolution of this compact, the compact becomes null and void and

shall be of no further force or effect, and the business and affairs of the

commission shall be wound up and any surplus funds shall be distributed in

accordance with the bylaws.

ARTICLE XV - SEVERABILITY AND CONSTRUCTION

1. The provisions of this compact shall be severable and if any phrase, clause, sentence,

or provision is deemed unenforceable, the remaining provisions of the compact shall

be enforceable.

2. The provisions of this compact shall be liberally construed to effectuate its purposes.

ARTICLE XVI - BINDING EFFECT OF COMPACT AND OTHER LAWS

1. Other laws.

a. Nothing herein prevents the enforcement of any other law of a compacting state,

except as provided in subdivision b.

b. For any product approved or certified to the commission, the rules, uniform

standards, and any other requirements of the commission shall constitute the

exclusive provisions applicable to the content, approval, and certification of such

products. For advertisement that is subject to the commission's authority, any

rule, uniform standard, or other requirement of the commission which governs the

content of the advertisement shall constitute the exclusive provision that a

commissioner may apply to the content of the advertisement. Notwithstanding the

foregoing, no action taken by the commission shall abrogate or restrict:

(1) The access of any person to state courts;

(2) Remedies available under state law related to breach of contract, tort, or

other laws not specifically directed to the content of the product;

(3) State law relating to the construction of insurance contracts; or

(4) The authority of the attorney general of the state, including, but not limited

to, maintaining any actions or proceedings, as authorized by law.

c. All insurance products filed with individual states shall be subject to the laws of

those states.

2. Binding effect of this compact.

a. All lawful actions of the commission, including all rules and operating procedures

promulgated by the commission, are binding upon the compacting states.

b. All agreements between the commission and the compacting states are binding

in accordance with their terms.

c. Upon the request of a party to a conflict over the meaning or interpretation of

commission actions, and upon a majority vote of the compacting states, the

commission may issue advisory opinions regarding the meaning or interpretation

in dispute.

d. In the event any provision of this compact exceeds the constitutional limits

imposed on the legislature of any compacting state, the obligations, duties,

powers, or jurisdiction sought to be conferred by that provision upon the

commission shall be ineffective as to that compacting state, and those

obligations, duties, powers, or jurisdiction shall remain in the compacting state

and shall be exercised by the agency thereof to which those obligations, duties,

powers, or jurisdiction are delegated by law in effect at the time this compact

becomes effective.
N.D. Cent. Code § 26.1-29-03 — ND Code / Title 26.1 / Chapter 26.1-29 / Section 26.1-29-03
26.1-29-03. Who may be parties to insurance contract
Status: in_force

26.1-29-03. Who may be parties to insurance contract

Anyone who is capable of making a contract, except as restricted by law, may be an insurer,

and anyone except a public enemy may be an insured.
N.D. Cent. Code § 26.1-42.1-01 — ND Code / Title 26.1 / Chapter 26.1-42.1 / Section 26.1-42.1-01
26.1-42.1-01. Scope
Status: in_force

26.1-42.1-01. Scope

This chapter applies to every kind of direct insurance, except:

1. Life, annuity, health, or disability insurance;

2. Mortgage guaranty, financial guaranty, or other forms of insurance offering protection

against investment risks;

3. Fidelity or surety bonds or any other bonding obligations;

4. Credit insurance, vendors' single interest insurance, collateral protection insurance, or

any similar insurance protecting the interests of a creditor arising out of a

creditor-debtor transaction;

5. Insurance of warranties or service contracts, including insurance that provides for the

repair, replacement, or service of goods or property; for indemnification for repair,

replacement, or service; for the operational or structural failure of the goods or

property due to a defect in materials, workmanship, or normal wear and tear; or for

reimbursement for the liability incurred by the issuer of agreements or service

contracts that provide these benefits;

6. Title insurance;

7. Ocean marine insurance;

8. Any transaction or combination of transactions between a person, including affiliates of

such person, and an insurer, including affiliates of that insurer, which involves the

transfer of investment or credit risk unaccompanied by transfer of insurance risk; or

9. Any insurance provided by or guaranteed by government.
N.D. Cent. Code § 26.1-03-14 — ND Code / Title 26.1 / Chapter 26.1-03 / Section 26.1-03-14
26.1-03-14. Confidentiality of product liability information reports
Status: repealed

26.1-03-14. Confidentiality of product liability information reports

Repealed by S.L. 2003, ch. 245, § 4.
N.D. Cent. Code § 26.1-36-03.1 — ND Code / Title 26.1 / Chapter 26.1-36 / Section 26.1-36-03.1
26.1-36-03.1. Information disclosure
Status: in_force

26.1-36-03.1. Information disclosure

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 may not deliver, issue, execute, or renew a health insurance policy or health service

contract unless that insurer makes available to persons covered under the policy or contract a

plan description that discloses in writing the terms and conditions of the policy or contract. The

plan description must use the plain and ordinary meaning of words so as to reasonably ensure

comprehension by a layperson and must be made available to each person covered under the

contract, in any manner reasonably assuring availability prior to the delivery, issuance,

execution, or renewal of the policy or contract.

1. The information required to be disclosed by the insurer must include, in addition to any

other disclosures required by law:

a. A general description of benefits and covered services, including benefit limits

and coverage exclusions and the definition of medical necessity used by the

insurer in determining whether benefits will be covered;

b. A general description of the insured's financial responsibility for payment of

premiums, deductibles, coinsurance, and copayment amounts, including any

maximum limitations on out-of-pocket expenses, any maximum limits on

payments for health care services, and the maximum out-of-pocket costs for

services that are provided by nonparticipating health care professionals;

c. A general explanation of the extent to which benefits and services may be

obtained from nonparticipating providers, including any out-of-network coverage

or options;

d. A general explanation of the extent to which a person covered under the policy or

contract may select from among participating providers and any limitations

imposed on the selection of participating health care providers;

e. A general description of the insurer's use of any prescription drug formulary or

any other general limits on the availability of prescription drugs;

f. A general description of the procedures and any conditions for persons covered

under the policy or contract to change participating primary and specialty

providers;

g. A general description of the procedures and any conditions for obtaining referrals;

h. A general description of the procedure for providing emergency services,

including an explanation of what constitutes an emergency situation and notice

that emergency services are not subject to prior authorization, the procedure for

obtaining emergency services and any cost-sharing applicable to emergency

services, including out-of-network services, and any limitation on access to

emergency services;

i. A general description of any utilization review policies and procedures, including a

description of any required prior authorizations or other requirements for health

care services and appeal procedures;

j. A general description of all complaint or grievance rights and procedures used to

resolve disputes between the insurer and persons covered under the policy or

contract or a health care provider, including the method for filing grievances and

the timeframes and circumstances for acting on grievances and appeals;

k. A general description of any methods used by the insurer for providing financial

payment incentives or other payment arrangements to reimburse health care

providers;

l. Notice of appropriate mailing addresses and telephone numbers to be used by

persons covered under the policy or contract in seeking information or

authorization for treatment;

m. If applicable, notice of the provisions required by section 26.1-47-03 that ensure

access to health care services in preferred provider arrangements; and

n. Notice that the information described in subsection 2 is available upon request.

2. An insurer shall provide the following written information if requested by a person

covered under a policy or contract:

a. A description of any process for credentialing participating health care providers;

b. A description of the policies and procedures established to ensure confidentiality

of patient information;

c. A description of the procedures followed by the insurer to make decisions about

the experimental nature of individual drugs, medical devices, or treatments;

d. With regard to any preferred provider arrangement or other network health plan, a

list by specialty of the name and location of participating health care providers

and the number, types, and geographic distribution of providers participating in

the health plan; and

e. Whether a specifically identified drug is included or excluded from coverage.

3. Nothing in this section may be construed as preventing an insurer from making the

information under subsections 1 and 2 available to a person covered under the policy

or contract through a handbook or similar publication.
N.D. Cent. Code § 26.1-41-01 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-01
26.1-41-01. Definitions
Status: in_force

26.1-41-01. Definitions

As used in this chapter:

1. "Accidental bodily injury" means bodily injury, sickness, or disease, including death

resulting therefrom, arising out of the operation of a motor vehicle, and excluding injury

as the result of an individual entering or alighting from a stopped motor vehicle if the

injury is not caused by another motor vehicle, and which is accidental as to the person

claiming basic or optional excess no-fault benefits.

2. "Basic no-fault benefits" means benefits for economic loss resulting from accidental

bodily injury. The maximum amount of basic no-fault benefits payable for all economic

loss incurred and resulting from accidental bodily injury to any one person as the result

of any one accident may not exceed thirty thousand dollars, regardless of the number

of persons entitled to the benefits or the number of basic no-fault insurers obligated to

pay the benefits. Basic no-fault benefits payable may not exceed one hundred fifty

dollars per week per person prorated for any lesser period for work loss or survivors'

income loss, or three thousand five hundred dollars for funeral, cremation, and burial

expenses.

3. "Basic no-fault insurer" means an insurer or a qualified self-insurer.

4. "Bus" means:

a. Any motor vehicle owned by a public or governmental agency and operated for

the transportation of children to or from school or privately owned and operated

for compensation for the transportation of children to or from school.

b. Any motor vehicle owned by a charitable, religious, educational, or governmental

corporation or organization designed for carrying more than ten passengers and

used for the transportation of persons not for compensation.

c. Any motor vehicle owned by a political subdivision and operated as part of a

public transit system in which all or a portion of the costs of operation are

subsidized by the political subdivision or the federal government.

5. "Dependent survivors" means the surviving spouse of a deceased injured person if

residing in the deceased's household at the time of the deceased's death, and other

persons receiving support from the deceased injured person at the time of the

deceased's death which would qualify them as dependents of the deceased for federal

income tax purposes under the federal Internal Revenue Code. The dependency of a

surviving spouse terminates upon remarriage.

6. "Disability" means the inability to engage in substantially all of the injured person's

usual and customary daily activities.

7. "Economic loss" means medical expenses, rehabilitation expenses, work loss,

replacement services loss, survivors' income loss, survivors' replacement services

loss, and funeral, cremation, and burial expenses.

8. "Injured person" means an individual who sustains accidental bodily injury.

9. "Medical expenses" means usual and customary charges incurred for reasonable and

necessary medical, surgical, diagnostic, x-ray, dental, prosthetic, ambulance, hospital,

or professional nursing services or services for remedial treatment and care. Usual

and customary charges do not include:

a. The portion of the charge for a room in any hospital, clinic, convalescent or

nursing home, extended care facility, or any similar facility in excess of the

reasonable and customary charge for semiprivate accommodations unless

intensive care is medically needed.

b. Charges for drugs sold without a prescription.

c. Charges for experimental treatments.

d. Charges for medically unproven treatments.

10. "Motor vehicle" means a vehicle having more than three load-bearing wheels, of a kind

required to be registered under the laws of this state relating to motor vehicles,

designed primarily for operation upon the public streets, roads, and highways, and

driven by power other than muscular power, and includes a trailer drawn by or

attached to such a vehicle. The term does not include an unconventional vehicle

defined in subsection 2 of section 39-29.2-01.

11. "Noneconomic loss" means pain, suffering, inconvenience, and other nonpecuniary

damage recoverable under the tort law of this state.

12. "Occupying" means to be in or upon a motor vehicle.

13. "Operation of a motor vehicle" means operation, maintenance, or use of a motor

vehicle as a vehicle. Operation of a motor vehicle does not include conduct within the

course of a business of repairing, servicing, or otherwise maintaining a motor vehicle

unless the injury occurs off the business premises, or conduct in the course of loading

and unloading the vehicle unless the injury occurs while occupying the motor vehicle.

14. "Owner" means the person in whose name the motor vehicle has been registered. If

ownership has been transferred, but the registration record has not been changed,

"owner" means the person, other than a lienholder, to whom ownership has been

transferred. If no registration is in effect at the time of an accident involving the motor

vehicle, "owner" means the person, other than a lienholder, who holds the legal title to

the motor vehicle. If the motor vehicle is the subject of a security agreement with the

debtor having the right to possession, a lease with an option to purchase with the

lessee having the right to possession, or a lease with a term of six months or more

with the lessee having the right to possession, "owner" means the debtor or lessee.

15. "Pedestrian" means any individual not occupying any vehicle designed to be driven or

drawn by power other than muscular power.

16. "Rehabilitation expense" means the cost of a procedure or treatment for rehabilitation

or a course of rehabilitative occupational training if the procedure, treatment, or

training is reasonable and appropriate for the particular case, its cost is reasonable in

relation to its probable rehabilitative effects, and it is likely to contribute substantially to

medical or occupational rehabilitation.

17. "Relative" means any of the following residing in the same household as the owner: an

individual related to the owner by blood, marriage, or adoption, or a foster child. An

individual resides in the same household if that individual usually makes a home in the

same family unit, even though temporarily living elsewhere.

18. "Replacement services loss" means expenses not exceeding fifteen dollars per day in

obtaining ordinary and necessary services from others not members of the injured

person's household in lieu of those that the injured person would have performed had

the injured person not been injured, not for income but for the benefit of the injured

person or the injured person's household. Replacement services loss does not include

any loss after the death of an injured person.

19. "Secured motor vehicle" means a motor vehicle with respect to which the security

required by this chapter was in effect at the time of its involvement in the accident

resulting in accidental bodily injury.

20. "Secured person" means the owner, operator, or occupant of a secured motor vehicle,

and any other person legally responsible for the acts or omissions of the owner,

operator, or occupant.

21. "Serious injury" means an accidental bodily injury which results in death,

dismemberment, serious and permanent disfigurement or disability beyond sixty days,

or medical expenses in excess of two thousand five hundred dollars. An injured person

who is furnished the services in subsection 9 without charge or at less than the usual

and customary charge for the service in this state is deemed to have sustained a

serious injury if a court determines that the usual and customary value of the services

exceeds two thousand five hundred dollars.

22. "Survivors' income loss" means loss sustained after an injured person's death by

dependent survivors during their dependency and consisting of the loss of the

contributions they would have received for their support from the decedent out of

income from work the decedent would normally have performed had the decedent not

died.

23. "Survivors' replacement services loss" means expenses, not to exceed fifteen dollars

per day after the injured person's death, by dependent survivors in obtaining ordinary

and necessary services from others not members of the decedent's household in lieu

of the services the decedent would have performed not for income but for the benefit

of the decedent's household.

24. "Work loss" means eighty-five percent of loss of income from work an injured person

who would normally be employed in gainful activity during the period of disability would

have performed had the person not been injured, reduced by any income from

substitute work actually performed by the injured person or by income the injured

person would have earned in available appropriate substitute work that the injured

person was capable of performing but unreasonably failed to undertake. Work loss

does not include any loss after death of an injured person.
N.D. Cent. Code § 26.1-41-15 — ND Code / Title 26.1 / Chapter 26.1-41 / Section 26.1-41-15
26.1-41-15. Motor vehicle liability insurance - Extraterritorial provision
Status: in_force

26.1-41-15. Motor vehicle liability insurance - Extraterritorial provision

1. Motor vehicle liability insurance applies to the amounts which the owner is legally

obligated to pay as damages because of accidental bodily injury and accidental

property damage arising out of the ownership or operation of a motor vehicle, if the

accident occurs in the United States or its possessions or in Canada. Motor vehicle

liability insurance must afford limits of liability not less than those required under the

financial responsibility laws of this state. Customary terms and conditions applicable to

motor vehicle liability insurance apply.

2. If the accident occurs outside this state but in the United States or its possessions or in

Canada:

a. If the limits of liability of the financial responsibility or compulsory insurance laws

of the applicable jurisdiction exceed the limits of liability of the financial

responsibility laws of North Dakota, the motor vehicle liability insurance is

deemed to comply with the limits of liability of the laws of the applicable

jurisdiction.

b. If the limits of no-fault benefits of the applicable jurisdiction exceed the limits

provided under this chapter for no-fault benefits, the no-fault benefits are deemed

to comply with the limits of the benefits of the laws of the applicable jurisdiction.
N.D. Cent. Code § 26.1-40-15.6 — ND Code / Title 26.1 / Chapter 26.1-40 / Section 26.1-40-15.6
26.1-40-15.6. Limitations
Status: in_force

26.1-40-15.6. Limitations

The uninsured and underinsured coverages provided for in sections 26.1-40-15.1 through

26.1-40-15.7 do not apply to bodily injury, sickness, disease, or death resulting therefrom of an

insured:

1. While occupying a motor vehicle owned by, furnished or available for the regular use of

the insured, a resident spouse, or resident relative, if such motor vehicle is not

described in the policy under which a claim is made, or is not a newly acquired or

replacement motor vehicle covered under the terms of the policy;

2. While operating or occupying a motor vehicle without the specific permission of the

owner thereof, or without a reasonable belief that the insured is entitled to do so;

3. For damages for pain, suffering, mental anguish, inconvenience, or other noneconomic

loss which could not have been recovered had the owner or operator of the motor

vehicle responsible for such loss maintained the security required under any

applicable state no-fault law;

4. For punitive, exemplary, or other noncompensatory damages;

5. With respect to which the applicable statute of limitations has expired on the insured's

claim against the uninsured or underinsured motorist;

6. Until the limits of all bodily injury liability policies and bonds that apply have been

exhausted by payment of settlements or judgments, or such limits or the remaining

part of them have been offered to the insured in writing;

7. When the insured, without the written consent of the insurer, shall make any

agreement or settlement with any person who may be legally liable therefor, if such

agreement adversely affects the rights of the insurer. The insurer is not bound by any

agreement or settlement without its prior knowledge and consent. This limitation does

not apply to underinsured motorist coverage when the insured has advised the insurer,

in compliance with subsection 2 of section 26.1-40-15.5, and the insurer has failed to

advance the required payment to protect its right of reimbursement and subrogation;

8. If the insured has failed to report the accident to the proper law enforcement

authorities as soon as practicable; and

9. While operating a motor vehicle in which the individual is specifically excluded.
N.D. Cent. Code § 26.1-40.1-06 — ND Code / Title 26.1 / Chapter 26.1-40.1 / Section 26.1-40.1-06
26.1-40.1-06. Liability of transportation network company beyond required limits
Status: in_force

26.1-40.1-06. Liability of transportation network company beyond required limits

This chapter does not limit the liability of a transportation network company arising out of an

automobile accident involving a participating driver in any action for damages against a

transportation network company for an amount above the required insurance coverage.
N.D. Cent. Code § 26.1-22-13 — ND Code / Title 26.1 / Chapter 26.1-22 / Section 26.1-22-13
26.1-22-13. Reserve balance - Payment of loss
Status: repealed

26.1-22-13. Reserve balance - Payment of loss

Repealed by S.L. 2025, ch. 275, § 17.
N.D. Cent. Code § 26.1-10-02 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-02
26.1-10-02. Subsidiaries of insurers
Status: in_force

26.1-10-02. Subsidiaries of insurers

1. Any domestic insurer, either by itself or in cooperation with one or more persons, may

organize or acquire one or more subsidiaries. A subsidiary may conduct any kind of

business and its authority to do so is not limited because it is a subsidiary of a

domestic insurer.

2. In addition to investments in common stock, preferred stock, debt obligations, and

other securities permitted under all other sections of this chapter, a domestic insurer

may also:

a. Invest, in common stock, preferred stock, debt obligations, and other securities of

one or more subsidiaries, amounts which do not exceed the lesser of ten percent

of the insurer's assets or fifty percent of the insurer's surplus as regards

policyholders; provided, that after the investments the insurer's surplus as

regards policyholders will be reasonable in relation to the insurer's outstanding

liabilities and adequate to meet its financial needs. In calculating the amount of

the investments, investments in domestic or foreign insurance subsidiaries and

health maintenance organizations shall be excluded, and there must be included:

(1) Total net moneys or other consideration expended and obligations assumed

in the acquisition or formation of a subsidiary, including all organizational

expenses and contributions to capital and surplus of such subsidiary

whether or not represented by the purchase of capital stock or issuance of

other securities; and

(2) All amounts expended in acquiring additional common stock, preferred

stock, debt obligations, and other securities, and all contributions to the

capital or surplus of a subsidiary subsequent to its acquisition or formation.

b. Invest any amount in common stock, preferred stock, debt obligations, and other

securities of one or more subsidiaries engaged or organized to engage

exclusively in the ownership and management of assets authorized as

investments for the insurer, provided that each subsidiary agrees to limit its

investments in any asset so that the investments will not cause the amount of the

total investment of the insurer to exceed any of the investment limitations

specified in subdivision a. "The total investment of the insurer" includes:

(1) Any direct investment by the insurer in an asset; and

(2) The insurer's proportionate share of any investment in an asset by any

subsidiary of the insurer which must be calculated by multiplying the amount

of the subsidiary's investment by the percentage of the ownership of the

subsidiary.

c. With the approval of the commissioner, invest any greater amount in common

stock, preferred stock, debt obligations, or other securities of one or more

subsidiaries; provided, that after the investment the insurer's surplus as regards

policyholders will be reasonable in relation to the insurer's outstanding liabilities

and adequate to its financial needs.

3. Investments in common stock, preferred stock, debt obligations, or other securities of

subsidiaries made pursuant to subsection 2 are not subject to any of the otherwise

applicable restrictions or prohibitions applicable to such investments of an insurer.

4. Whether any investment pursuant to subsection 2 meets the applicable requirements

thereof is to be determined before the investment is made, by calculating the

applicable investment limitations as though the investment had already been made,

taking into account the then outstanding principal balance on all previous investments

in debt obligations, and the value of all previous investments in equity securities as of

the date they were made net of any return of capital invested, not including dividends.

5. If an insurer ceases to control a subsidiary, it shall dispose of any investment therein

made pursuant to this section within three years from the time of the cessation of

control or within such further time as the commissioner prescribes, unless at any time

after the investment has been made, the investment has met the requirements for

investment under any other section, and the insurer has so notified the commissioner.
N.D. Cent. Code § 26.1-12.1-13 — ND Code / Title 26.1 / Chapter 26.1-12.1 / Section 26.1-12.1-13
26.1-12.1-13. Incorporation
Status: in_force

26.1-12.1-13. Incorporation

A mutual insurance holding company resulting from the reorganization of a domestic mutual

insurance company must be incorporated under chapter 10-33. The articles of incorporation of

the mutual insurance holding company are subject to approval of the commissioner in the same

manner as those of an insurance company.
N.D. Cent. Code § 26.1-33-11 — ND Code / Title 26.1 / Chapter 26.1-33 / Section 26.1-33-11
26.1-33-11. Group life policy - Required provisions
Status: reserved

26.1-33-11. Group life policy - Required provisions

No group life insurance policy may be delivered in this state unless it contains in substance

the following provisions, or provisions which in the opinion of the commissioner are more

favorable to the insureds, or at least as favorable to the insureds and more favorable to the

policyholder; provided, however, that the standard provisions required for an individual life

insurance policy may not apply to a group life insurance policy:

1. A provision that the policyholder is entitled to a grace period of thirty-one days for the

payment of any premium due except the first, during which grace period the death

benefit coverage continues in force, unless the policyholder has given the insurer

written notice of discontinuance in advance of the date of discontinuance and in

accordance with the terms of the policy. The policy may provide that the policyholder is

liable to the insurer for the payment of a pro rata premium for the time the policy was

in force during such a grace period.

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

of premiums, after it has been in force for two years from its date of issue; and that no

statement made by any person insured under the policy relating to insurability may be

used in contesting the validity of the insurance with respect to which the statement

was made after the insurance has been in force prior to the contest for a period of two

years during the insured's lifetime nor unless it is contained in a written instrument

signed by the insured; provided, however, that no such provision may preclude the

assertion of any time of defenses based upon provisions in the policy which relate to

eligibility for coverage.

3. A provision that a copy of the application, if any, of the policyholder will be attached to

the policy when issued, that all statements made by the policyholder or by the persons

insured are representations and not warranties, and that no statement made by any

insured may be used in any contest unless a copy of the instrument containing the

statement is or has been furnished to the insured or, in the event of death or incapacity

of the insured, to the insured's beneficiary or personal representative.

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

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

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

coverage.

5. A provision specifying an equitable adjustment of premiums or of benefits or of both to

be made if the age of an insured has been misstated. The provision must contain a

clear statement of the method of adjustment to be made.

6. A provision that any sum becoming due by reason of the death of an insured is

payable to the beneficiary designated by the insured, except that when the policy

contains conditions pertaining to family status the beneficiary may be the family

member specified by the policy terms, subject to the provisions of the policy in the

event there is no designated beneficiary, as to all or any part of such sum, living at the

death of the insured and subject to any right reserved by the insurer in the policy and

set forth in the certificate to pay at its option a part of such sum not exceeding five

thousand dollars to any person appearing to the insurer to be equitably entitled thereto

by reason of having incurred funeral or other expenses incident to the last illness or

death of the person insured.

7. If the group life insurance policy is on a plan of insurance other than the term plan, a

nonforfeiture provision which in the opinion of the commissioner is equitable to the

insureds and to the policyholder, but this does not require the policy to contain the

same nonforfeiture provision required for an individual life insurance policy.

8. A provision that the insurer will issue to the policyholder for delivery to each insured a

certificate setting forth a statement as to the insurance protection to which that person

is entitled, a statement as to any dependent's coverage included in the certificate, and

the rights and conditions set forth in subsections 9, 10, 11, and 12.

9. A provision that if the insurance, or any portion of it, on an insured or on the dependent

of an insured, ceases because of termination of employment or of membership in the

class or classes eligible for coverage under the policy, the insured is entitled to have

issued to the insured by the insurer, without evidence of insurability, an individual life

insurance policy without disability or other supplementary benefits, provided

application for the individual policy is made, and the first premium paid to the insurer,

within thirty-one days after such termination, and provided further that:

a. The individual policy must, at the option of such person, be on any one of the

forms then customarily issued by the insurer at the age and for the amount

applied for, except that the group policy may exclude the option to elect term

insurance;

b. The individual policy must be in an amount not in excess of life insurance which

ceases because of such termination, less the amount of life insurance for which

the person becomes eligible under the same or any other group policy within

thirty-one days after termination, provided that any amount of insurance which

has matured on or before the date of termination as an endowment payable to

the person insured, whether in one sum or in installments or in the form of an

annuity, may not, for purposes of this provision, be included in the amount which

is considered to cease because of the termination; and

c. The premium on the individual life insurance policy is at the insurer's then

customary rate applicable to the form and amount of the individual policy, to the

class of risk to which such person then belongs, and to the individual age attained

on the effective date of the individual policy.

Subject to the same conditions set forth above, the conversion privilege must be

available to a surviving dependent, if any, at the death of the employee or member,

with respect to the coverage under the group policy which terminates by reason of

such death and to the dependent of the employee or member upon termination of

coverage of the dependent, while the employee or member remains under the group

policy, by reason of the dependent ceasing to be a qualified family member under the

group policy.

10. A provision that if the group policy terminates or is amended so as to terminate the

insurance of any class of insured persons, every insured at the date of termination

whose insurance terminates, including the insured dependent of a covered person,

and who has been so insured for at least five years prior to the termination date is

entitled to have issued by the insurer an individual life insurance policy, subject to the

same conditions and limitations as are provided by subsection 9, except that the group

policy may provide that the amount of such individual policy may not exceed the

smaller of:

a. The amount of the person's life insurance protection ceasing because of the

termination or amendment of the group policy, less the amount of any life

insurance for which the person is or becomes eligible under a group policy issued

or reinstated by the same or another insurer within thirty-one days after such

termination; or

b. Ten thousand dollars.

11. A provision that if an insured, or the insured dependent of a covered person, dies

during the period within which the individual would have been entitled to have an

individual life insurance policy issued in accordance with subsection 9 or 10 and

before such an individual policy has become effective, the amount of life insurance that

the insured would have been entitled to have issued under the individual policy is

payable as a claim under the group policy, whether or not application for the individual

policy or the payment of the first premium therefor has been made.

12. When active employment is a condition of insurance, a provision that an insured may

continue coverage during the insured's total disability by timely payment to the

policyholder of that portion, if any, of the premium that would have been required from

the insured had total disability not occurred. The continuation shall be on a premium

paying basis for a period of six months from the date on which the total disability

started, but not beyond the earlier of:

a. Approval by the insurer of continuation of the coverage under any disability

provision which the group policy may contain; or

b. The discontinuance of the group policy.

13. A provision that the settlement of a death claim must be made upon receipt of due

proof of death, or not later than two months after receipt of the proof of death, and

must include reasonable interest accrued from the date of death so long as a proof of

death is filed within one hundred eighty days after the date of the death.
N.D. Cent. Code § 26.1-47-02.3 — ND Code / Title 26.1 / Chapter 26.1-47 / Section 26.1-47-02.3
26.1-47-02.3. Postpayment of dental claims - Payment recovery limitations
Status: in_force

26.1-47-02.3. Postpayment of dental claims - Payment recovery limitations

1. As used in this section, "dental care provider" means a licensed provider of dental care

services in this state.

2. Other than recovery for duplicate payments, a dental insurer, if engaging in

overpayment recovery efforts, shall provide written notice to the dental care provider

which identifies the error made in the processing or payment of the claim and justifies

the overpayment recovery.

3. A dental insurer shall provide a dental care provider with the opportunity to challenge

an overpayment recovery, including the sharing of claims information, and shall

establish written policies and procedures for a dental care provider to follow to

challenge an overpayment recovery.

4. A dental insurer may not initiate overpayment recovery efforts more than twelve

months after the original payment for the claim was made. This time limit does not

apply to overpayment recovery efforts that are:

a. Based on reasonable belief of fraud, abuse, or other intentional misconduct;

b. Required by, or initiated at the request of, a self-insured plan; or

c. Required by a state or federal government plan.
N.D. Cent. Code § 26.1-15.1-18 — ND Code / Title 26.1 / Chapter 26.1-15.1 / Section 26.1-15.1-18
26.1-15.1-18. Benefits not attachable
Status: in_force

26.1-15.1-18. Benefits not attachable

All money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any

society is exempt from liability for debts of the person to or on account of whom the items are

paid, provided, or rendered, and are not subject to seizure upon execution or other process.
N.D. Cent. Code § 26.1-26.6-02 — ND Code / Title 26.1 / Chapter 26.1-26.6 / Section 26.1-26.6-02
26.1-26.6-02. Licensing and continuing education requirements
Status: in_force

26.1-26.6-02. Licensing and continuing education requirements

The licensing and continuing education requirements under chapter 26.1-26 apply to bail

bond agents.
N.D. Cent. Code § 26.1-10-04 — ND Code / Title 26.1 / Chapter 26.1-10 / Section 26.1-10-04
26.1-10-04. Registration of insurers
Status: in_force

26.1-10-04. Registration of insurers

1. Every insurer that is authorized to do business in this state and which is a member of

an insurance holding company system shall register with the commissioner, except a

foreign insurer subject to registration requirements and standards adopted by statute

or rule in the jurisdiction of its domicile which are substantially similar to those

contained in this section and section 26.1-10-05. Any insurer subject to registration

under this section shall register within fifteen days after it becomes subject to

registration, and annually thereafter by March first of each year for the previous

calendar year unless the commissioner for good cause shown extends the time for

registration, and then within the extended time. The commissioner may require any

insurer authorized to do business in the state which is a member of an insurance

holding company system not subject to registration under this section to furnish a copy

of the registration statement, the summary specified in subsection 10 of section

26.1-10-04, or other information filed by the insurer with the insurance regulatory

authority of the domiciliary jurisdiction.

2. Every insurer subject to registration shall file a registration statement with the

commissioner on a form approved by the commissioner, which must contain current

information about:

a. The capital structure, general financial condition, ownership, and management of

the insurer and any person in control of the insurer.

b. The identity and relationship of every member of the insurance holding company

system.

c. The following agreements in force and transactions currently outstanding or

which have occurred during the last calendar year between the insurer and its

affiliates:

(1) Loans, other investments, or purchases, sales, or exchanges of securities of

the affiliates by the insurer or of the insurer by its affiliates.

(2) Purchases, sales, or exchange of assets.

(3) Transactions not in the ordinary course of business.

(4) Guarantees or undertakings for the benefit of an affiliate which result in an

actual contingent exposure of the insurer's assets to liability, other than

insurance contracts entered into in the ordinary course of the insurer's

business.

(5) All management agreements, service contracts, and all cost-sharing

arrangements.

(6) Reinsurance agreements.

(7) Dividends and other distributions to shareholders.

(8) Consolidated tax allocation agreements.

d. Any pledge of the insurer's stock, including stock of any subsidiary or controlling

affiliate, for a loan made to any member of the insurance holding company

system.

e. If requested by the commissioner, the insurer shall include financial statements of

or within an insurance holding company system, including all affiliates. A financial

statement may include an annual audited financial statement filed with the United

States securities and exchange commission pursuant to the federal Securities Act

of 1933, as amended, [15 U.S.C. 77a et seq.] or the federal Securities Exchange

Act of 1934, as amended, [15 U.S.C. 78a et seq.] or the financial statement

pursuant to this subdivision may satisfy the request by providing the

commissioner with the most recently filed parent corporation financial statements

that have been filed with the United Sates securities and exchange commission.

f. Other matters concerning transactions between registered insurers and any

affiliates as may be included from time to time in any registration forms adopted

or approved by the commissioner.

g. Statements that the insurer's board of directors is responsible for and supervises,

relating to corporate governance and internal controls that the insurer's officers or

senior management have approved, implemented, and continue to maintain and

monitor.

h. Any other information required by the commissioner by rule.

3. No information need be disclosed on the registration statement filed pursuant to

subsection 2 if the information is not material for the purposes of this section. Unless

the commissioner by rule or order provides otherwise, sales, purchases, exchanges,

loans or extensions of credit, or investments, or guarantees involving one-half of one

percent or less of an insurer's admitted assets as of December thirty-first next

preceding are not material for purposes of this section. The definition of materiality

provided in this subsection does not apply for purposes of the group capital calculation

or the liquidity stress test framework.

4. In addition to the annual filing requirement under subsection 1, each registered insurer

shall keep current the information required to be disclosed in its registration statement

by reporting all material changes or additions on amendment forms approved by the

commissioner within fifteen days after the end of the month in which it learns of each

change or addition; provided, however, that subject to subsections 7, 8, and 9 of

section 26.1-10-05, each registered insurer shall report all dividends and other

distributions to shareholders within five business days following the declaration and no

less than ten business days prior to payment thereof.

5. The commissioner shall terminate the registration of any insurer that demonstrates it

no longer is a member of an insurance holding company system.

6. The commissioner may require or allow two or more affiliated insurers subject to

registration to file a consolidated registration statement.

7. The commissioner may allow an insurer which is authorized to do business in this

state and which is part of an insurance holding company system to register on behalf

of any affiliated insurer which is required to register under subsection 1 to file all

information and material required to be filed under this section.

8. This section does not apply to any insurer, information, or transaction if and to the

extent excepted by the commissioner by rule or order.

9. Any person may file with the commissioner a disclaimer of affiliation with any

authorized insurer or a disclaimer may be filed by the insurer or any member of an

insurance holding company system. The disclaimer must fully disclose all material

relationships and bases for affiliation between the person and the insurer as well as

the basis for disclaiming the affiliation. A disclaimer of affiliation is deemed to have

been granted unless the commissioner, within thirty days following receipt of a

complete disclaimer, notifies the filing party the disclaimer is disallowed. In the event of

disallowance, the disclaiming party may request an administrative hearing, which must

be granted. The disclaiming party is relieved of its duty to register under this section if

approval of the disclaimer has been granted by the commissioner or if the disclaimer is

deemed to have been approved.

10. All registration statements must contain a summary outlining all items in the current

registration statement representing changes from the prior registration statement.

11. Any person within an insurance holding company system subject to registration must

provide complete and accurate information to an insurer, when the information is

reasonably necessary to enable the insurer to comply with the provisions of this

chapter.

12. The ultimate controlling person of every insurer subject to registration shall file an

annual enterprise risk report. To the best of the ultimate controlling person's knowledge

and belief, the report must identify the material risks within the insurance holding

company system which could pose enterprise risk to the insurer. The report must be

filed with the lead state commissioner of the insurance holding company system as

determined by the procedures within the financial analysis handbook adopted by the

national association of insurance commissioners.

13. Except as provided in subsection 14, the ultimate controlling person of each insurer

subject to registration shall concurrently file with the registration an annual group

capital calculation as directed by the lead state commissioner. The report must be

completed in accordance with the national association of insurance commissioners

group capital calculation instructions, which may permit the lead state commissioner to

allow a controlling person that is not the ultimate controlling person to file the group

capital calculation. The report must be filed with the lead state commissioner of the

insurance holding company system as determined by the commissioner in accordance

with the financial analysis handbook procedures adopted by the national association of

insurance commissioners.

14. An insurance holding company system is exempt from filing the group capital

calculation if the insurance holding company system meets any of the criteria

described below.

a. An insurance holding company system that has only one insurer within its holding

company structure, only writes business, is only licensed in its domestic state,

and assumes no business from any other insurer.

b. If a system is required to perform a group capital calculation specified by the

United States federal reserve board, the lead state commissioner shall request

the calculation from the federal reserve board under the terms of information

sharing agreements in effect. If the federal reserve board cannot share the

calculation with the lead state commissioner, the insurance holding company

system is not exempt from the group capital calculation filing.

c. An insurance holding company system that has a non-United States groupwide

supervisor located within a reciprocal jurisdiction as set forth in subsection 7 of

section 26.1-31.2-01 which recognizes the United States state regulatory

approach to group supervision and group capital.

d. An insurance holding company system that:

(1) Provides information to the lead state that meets the requirements for

accreditation under the national association of insurance commissioners

financial standards and accreditation program, either directly or indirectly

through the groupwide supervisor, who has determined the information is

satisfactory to allow the lead state to comply with the national association of

insurance commissioners group supervision approach, as detailed in the

national association of insurance commissioners financial analysis

handbook; and

(2) Has a non-United States groupwide supervisor that is not in a reciprocal

jurisdiction which recognizes and accepts, as specified by the commissioner

by rule, the group capital calculation as the worldwide group capital

assessment for United States insurance groups that operate in that

jurisdiction.

e. Notwithstanding subdivisions c and d, a lead state commissioner shall require the

group capital calculation for United States operations of any non-United States

based insurance holding company system where, after any necessary

consultation with other supervisors or officials, it is deemed appropriate by the

lead state commissioner for prudential oversight and solvency monitoring

purposes or for ensuring the competitiveness of the insurance marketplace.

f. Notwithstanding subdivisions a through d, the lead state commissioner may

exempt the ultimate controlling person from filing the annual group capital

calculation or accept a limited group capital filing or report in accordance with

criteria as specified by the commissioner by rule.

g. If the lead state commissioner determines an insurance holding company system

no longer meets one or more of the requirements for an exemption from filing the

group capital calculation under this section, the insurance holding company

system shall file the group capital calculation at the next annual filing date, unless

an extension is provided by the lead state commissioner based on reasonable

grounds shown.

15. The ultimate controlling person of every insurer subject to registration and scoped into

the national association of insurance commissioners liquidity stress test framework

shall file the results of a specific year's liquidity stress test. The results must be filed

with the lead state insurance commissioner of the insurance holding company system

as determined by the financial analysis handbook procedures adopted by the national

association of insurance commissioners.

a. The national association of insurance commissioners liquidity stress test

framework includes scope criteria applicable to a specific data year. The scope

criteria are reviewed at least annually by the financial stability task force or its

successor. A change to the national association of insurance commissioners

liquidity stress test framework or to the data year for which the scope criteria are

to be measured is effective on January first of the year following the calendar

year when the change is adopted. An insurer that meets at least one threshold of

the scope criteria is considered scoped into the national association of insurance

commissioners liquidity stress test framework for the specified data year unless

the lead state insurance commissioner, in consultation with the national

association of insurance commissioners financial stability task force or its

successor, determines the insurer should not be scoped into the framework for

that data year. An insurer that does not trigger at least one threshold of the scope

criteria is considered scoped out of the liquidity stress test framework for the

specified data year, unless the lead state insurance commissioner, in consultation

with the national association of insurance commissioners financial stability task

force or its successor, determines the insurer should be scoped into the

framework for that data year.

b. To avoid having insurers scoped in and out of the national association of

insurance commissioners liquidity stress test framework on a frequent basis, the

lead state insurance commissioner, in consultation with the financial stability task

force or its successor, shall assess this concern as part of the determination for

an insurer.

c. The performance of, and filing of the results from, a specific year's liquidity stress

test must comply with the national association of insurance commissioners

liquidity stress test framework's instructions and reporting templates for that year

and any lead state insurance commissioner determinations, in consultation with

the financial stability task force or its successor, provided within the framework.

16. The failure to file a registration statement or any summary of the registration statement

or enterprise risk filing required by this section within the time specified for the filing is

a violation of this section.
N.D. Cent. Code § 26.1-17-33.1 — ND Code / Title 26.1 / Chapter 26.1-17 / Section 26.1-17-33.1
26.1-17-33.1. Nonprofit health service corporation - Conversion to nonprofit mutual insurance company - Application of law
Status: in_force

26.1-17-33.1. Nonprofit health service corporation - Conversion to nonprofit mutual

insurance company - Application of law.

1. Any nonprofit health service corporation organized under chapter 26.1-17, having

admitted assets in excess of all liabilities at least equal to the original surplus required

of a mutual insurance company by section 26.1-12-10, without reincorporation, and

upon adoption of a resolution by its board of directors, may petition the insurance

commissioner for an order to become a nonprofit mutual insurance company subject to

chapter 26.1-12. For the purpose of obtaining approval from the insurance

commissioner, conversion to a nonprofit mutual insurance company under this section

is deemed a consolidation pursuant to chapter 26.1-07 and the procedure described

therein must be followed.

2. Upon becoming subject to chapter 26.1-12, the company may continue to provide

health care and related services to its present or future members and subscribers by

health care contracts and may make provision for the payment of health care services

directly to hospitals and other agencies or institutions or persons rendering health care

services or related services or may make direct payment to the member or subscriber.

The conversion of a nonprofit health service corporation into a mutual insurance

company must not impair the rights or obligations or any existing contractual rights of a

health care service corporation or its members. Except as provided in this section, the

laws that apply to mutual insurance companies, and insurance companies generally,

apply to a nonprofit mutual insurance company converted from a nonprofit health

service corporation pursuant to this section.

3. The nonprofit corporation laws apply to the operation and control of a nonprofit mutual

insurance company converted from a nonprofit health service corporation under this

section and supersede any conflicting provisions in title 26.1 unless title 26.1 is more

restrictive.

4. The funds of a nonprofit mutual insurance company may be invested in those

investments authorized to be made by domestic insurance companies under section

26.1-05-19, as limited by section 26.1-05-18.

5. A nonprofit mutual insurance company may form a wholly owned company for the

purpose of administering Medicare claims and engaging in other business activities

that do not accept insurance risk. A company established under this subsection may

form a joint venture or subsidiary to conduct one or more of the functions the nonprofit

mutual insurance company could conduct directly. An officer, a director, or a

management employee of the nonprofit mutual insurance company may not directly or

indirectly own an interest in a subsidiary.

6. Except as authorized under subsection 12, a nonprofit mutual insurance company may

not demutualize. A nonprofit mutual insurance company may not be converted to a

for-profit mutual company or to a for-profit stock company.

7. A nonprofit mutual insurance company may avail itself of the additional investment

authority under chapter 26.1-10. Upon approval by the commissioner after a showing

of good cause by the nonprofit mutual insurance company, aggregate investments in

all subsidiaries of the company under subsection 20 of section 26.1-05-19 and under

chapter 26.1-10 may exceed an amount equal to twenty-five percent of the company's

admitted assets.

8. A conversion of a nonprofit health service corporation to a nonprofit mutual insurance

company under this section or the restructuring of a nonprofit mutual insurance

company under subsection 12, to the extent that any assets of the nonprofit health

service corporation or the restructured nonprofit mutual insurance company and the

restructured nonprofit mutual insurance company's nonprofit holding corporation

parent formed pursuant to subsection 12 are impressed with a charitable trust

immediately before the conversion or restructuring, does not give rise to a breach of

the charitable trust or violate any fiduciary duty laws, and does not constitute grounds

for disapproval of the petition to convert to a nonprofit mutual insurance company, the

articles of incorporation of the company under section 26.1-12-04, or application for

restructuring of a nonprofit mutual insurance company under subsection 12. A

conversion or restructuring authorized by this section does not diminish the application

of charitable trust or fiduciary duty laws that may apply to the converted or restructured

company immediately before the conversion.

9. A nonprofit mutual insurance company may not engage in the practice of medicine,

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

required.

10. Each nonprofit mutual insurance company and each nonprofit mutual insurance

company and its nonprofit holding corporation parent are charitable and benevolent

organizations and the laws of this state relating to and affecting nonprofit charitable

and benevolent corporations are applicable to all nonprofit mutual insurance

companies and restructured nonprofit mutual insurance companies and their nonprofit

holding corporation parents.

11. Except as authorized under subsection 12, a nonprofit mutual insurance company may

not form a mutual insurance holding company.

12. Upon approval of the nonprofit mutual insurance company's board of directors, the

approval of the commissioner pursuant to this subsection, and any necessary approval

of the nonprofit mutual insurance company's members, a nonprofit mutual insurance

company may restructure, while remaining a nonprofit corporation, by forming a

nonprofit holding corporation that will be the sole member of the restructured company.

a. The restructured company shall retain any additional authority granted to the

restructured company as a nonprofit mutual insurance company under this

section and the restructured company shall remain subject to subsections 3, 4, 5,

6, 7, 8, 9, and 10, except to the extent inconsistent with this subsection and

b. The restructured company must be treated as a mutual insurance company

subject to the provisions of chapter 26.1-12, except for sections 26.1-12-01,

26.1-12-02, 26.1-12-03, 26.1-12-05, 26.1-12-06, 26.1-12-07, 26.1-12-08,

26.1-12-09, 26.1-12-10, 26.1-12-14, 26.1-12-16, 26.1-12-18, 26.1-12-19,

26.1-12-23, 26.1-12-24, 26.1-12-25, 26.1-12-26, 26.1-12-29, and 26.1-12-30.

c. The restructured company may elect to use the term "mutual" in the company's

name, marketing materials, and other communications.

d. The nonprofit holding corporation is subject to the provisions of sections

26.1-12-06, 26.1-12-07, 26.1-12-14, and 26.1-12-16. After restructuring under this

subsection, chapter 26.1-12.1 does not apply to the restructured company or the

restructured company's nonprofit holding corporation parent.

e. The membership interests of the members of the restructuring company must be

converted into membership interests in the nonprofit holding corporation;

however, notwithstanding section 26.1-12-14, upon the effective date of the

restructuring, such membership interests may be weighted or otherwise adjusted

to reflect the number of subscribers covered under a particular policy.

Concomitantly with the restructuring, and without complying with sections

26.1-10-05 and 26.1-10-05.1, the restructuring company may transfer or assign

the restructuring company's shares, membership units, or other incidents of

ownership in one or more of the restructuring company's subsidiaries and

affiliates, as well as the restructuring company's workforce, to the nonprofit

holding corporation.

f. The restructuring company shall submit an application for restructuring,

consisting of revised articles and bylaws, the articles and bylaws of the nonprofit

holding company, any share or membership interest transfer documents,

authorizing resolutions and other materials the restructuring company deems

pertinent to the restructuring to the commissioner. The commissioner shall

approve the restructuring unless, after a public hearing, the commissioner finds:

(1) After the change of control, the domestic insurance company referenced in

subsection 1 would not be able to satisfy the requirements for the issuance

of a certificate of authority to write the lines of insurance for which the

domestic insurance company is presently licensed;

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

substantially lessen competition in insurance in this state or tend to create a

monopoly in this state;

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

stability of the insurance company or prejudice the interest of the insurance

company's policyholders;

(4) The acquiring party's plans or proposals to liquidate the insurance company,

to sell the insurance company's assets, to consolidate or merge with any

person, or to make any other material change in the insurance company's

business or corporate structure or management are unfair and

unreasonable to policyholders of the company and are not in the public

interest;

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

control the operation of the insurance company are such that it would not be

in the interest of policyholders of the company and of the public to permit the

merger or other acquisition of control; or

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

buying public.

g. Within thirty days of submission of the application to the commissioner under this

subsection, the commissioner shall make written findings, conclusions, and a

determination on the application.

13. A merger or consolidation of a nonprofit mutual insurance company that has been

restructured under subsection 12, merger or consolidation of the restructured nonprofit

mutual insurance company's nonprofit holding corporation parent, acquisition of control

of either, or acquisition of another insurer by the restructured company or the

restructured company's nonprofit holding corporation parent is subject to the

provisions of sections 26.1-10-03 and 26.1-10-03.1 and chapter 26.1-07 which would

be applicable to the type of transaction involved.

14. This section does not supersede or impair the rights, powers, or authority of the

attorney general or courts of this state established by statute, case law, or common

law with respect to charitable or benevolent corporations.
N.D. Cent. Code § 26.1-19-18 — ND Code / Title 26.1 / Chapter 26.1-19 / Section 26.1-19-18
26.1-19-18. Rulemaking authority of commissioner
Status: in_force

26.1-19-18. Rulemaking authority of commissioner

The commissioner may adopt reasonable rules necessary and proper to carry out this

chapter. This chapter does not prohibit the commissioner from requiring changes in procedure

previously approved.
N.D. Cent. Code § 26.1-58-01 — ND Code / Title 26.1 / Chapter 26.1-58 / Section 26.1-58-01
26.1-58-01. Definitions
Status: in_force

26.1-58-01. Definitions

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

1. "Aggregator site" means a website that provides access to information regarding

insurance products from more than one insurer, including product and insurer

information, for use in comparison shopping.

2. "Blanket travel insurance" means a policy of travel insurance issued to an eligible

group providing coverage for specific classes of persons defined in the policy with

coverage provided to all members of the eligible group without a separate charge to

individual members of the eligible group.

3. "Cancellation fee waiver" means a contractual agreement between a supplier of travel

services and the supplier's customer to waive some or all of the nonrefundable

cancellation fee provisions of the supplier's underlying travel contract with or without

regard to the reason for the cancellation or form of reimbursement. A cancellation fee

waiver is not insurance.

4. "Eligible group", solely for purposes of travel insurance, means two or more persons

that are engaged in a common enterprise, or have an economic, educational, or social

affinity or relationship, including any of the following:

a. An entity engaged in the business of providing travel or travel services, including

tour operators, lodging providers, vacation property owners, hotels and resorts,

travel clubs, travel agencies, property managers, cultural exchange programs,

and common carriers or the operator, owner, or lessor of a means of

transportation of passengers, including airlines, cruise lines, railroads, steamship

companies, and public bus carriers, under which with regard to any particular

travel or type of travel or travelers, all members or customers of the group must

have a common exposure to risk attendant to the travel;

b. A college, school, or other institution of learning, covering students, teachers,

employees, or volunteers;

c. An employer covering any group of employees, volunteers, contractors, board of

directors, dependents, or guests;

d. A sports team, camp, or sponsor of a sports team or camp, covering participants,

members, campers, employees, officials, supervisors, or volunteers;

e. A religious, charitable, recreational, educational, or civic organization, or branch

thereof, covering any group of members, participants, or volunteers;

f. A financial institution or financial institution vendor; parent holding company,

trustee, or agent of the financial institution or vendor; or parent holding company,

trustee, or agent designated by one or more financial institutions or financial

institution vendors, including accountholders, credit card holders, debtors,

guarantors, or purchasers;

g. An incorporated or unincorporated association, including labor unions, having a

common interest, constitution, and bylaws, and organized and maintained in good

faith for purposes other than obtaining insurance for members or participants of

the association covering the association's members;

h. A trust or the trustees of a fund established, created, or maintained for the benefit

of and covering members, employees, or customers, subject to the commissioner

permitting the use of a trust and the state premium tax in section 26.1-58-03 of

one or more associations meeting the requirements of subdivision g;

i. An entertainment production company covering a group of participants,

volunteers, audience members, contestants, or workers;

j. A volunteer fire department, ambulance, rescue, police, court, or first aid, civil

defense, or other such volunteer group;

k. Preschools, day care institutions for children or adults, and senior citizen clubs;

l. An automobile or truck rental or leasing company covering a group of individuals

who may become renters, lessees, or passengers defined by the individuals'

travel status on the rented or leased vehicles. The common carrier, the operator,

owner, or lessor of a means of transportation, or the automobile or truck rental or

leasing company, is the policyholder under a policy to which this section applies;

or

m. Any other group for which the commissioner has determined the members are

engaged in a common enterprise, or have an economic, educational, or social

affinity or relationship, and issuance of the policy would not be contrary to the

public interest.

5. "Fulfillment materials" means documentation sent to the purchaser of a travel

protection plan confirming the purchase and providing the travel protection plan's

coverage and assistance details.

6. "Group travel insurance" means travel insurance issued to an eligible group.

7. "Limited lines travel insurance producer" has the same meaning as provided in section

26.1-26-54.

8. "Offer and disseminate" has the same meaning as provided in section 26.1-26-54.

9. "Primary certificate holder", specific to section 26.1-58-03, means an individual who

elects and purchases travel insurance under a group policy.

10. "Primary policyholder", specific to section 26.1-58-03, means an individual who elects

and purchases individual travel insurance.

11. "Travel administrator" means a person that directly or indirectly underwrites, collects

charges, collateral, or premiums from, or adjusts or settles claims on residents of this

state, in connection with travel insurance, except a person is not considered a travel

administrator if that person's only actions that would otherwise cause the person to be

considered a travel administrator are among the following:

a. A person working for a travel administrator to the extent the person's activities are

subject to the supervision and control of the travel administrator;

b. An insurance producer selling insurance or engaged in administrative and claims-

related activities within the scope of the producer's license;

c. A travel retailer offering and disseminating travel insurance and registered under

the license of a limited lines travel insurance producer in accordance with this

chapter;

d. An individual adjusting or settling claims in the normal course of that individual's

practice or employment as an attorney-at-law and who does not collect charges

or premiums in connection with insurance coverage; or

e. A business entity affiliated with a licensed insurer while acting as a travel

administrator for the direct and assumed insurance business of an affiliated

insurer.

12. "Travel assistance services" means noninsurance services for which the consumer is

not indemnified based on a fortuitous event, and for which providing the service does

not result in transfer or shifting of risk that would constitute the business of insurance.

The term includes security advisories, destination information, vaccination and

immunization information services, travel reservation services, entertainment, activity

and event planning, translation assistance, emergency messaging, international legal

and medical referrals, medical case monitoring, coordination of transportation

arrangements, emergency cash transfer assistance, medical prescription replacement

assistance, passport and travel document replacement assistance, lost luggage

assistance, concierge services, and any other service furnished in connection with

planned travel. Travel assistance services are not insurance.

13. "Travel insurance" has the same definition as provided in section 26.1-26-54.

14. "Travel protection plan" means a plan that provides one or more of the following:

a. Travel insurance.

b. Travel assistance services.

c. Cancellation fee waivers.

15. "Travel retailer" has the same definition as provided in section 26.1-26-54.
N.D. Cent. Code § 26.1-39-16 — ND Code / Title 26.1 / Chapter 26.1-39 / Section 26.1-39-16
26.1-39-16. Notification and statement of reasons for nonrenewal of property and casualty policies
Status: in_force

26.1-39-16. Notification and statement of reasons for nonrenewal of property and

casualty policies.

1. An insurer shall renew a property insurance policy unless a written notice of

nonrenewal is mailed or delivered to the named insured, at the last-known address of

the named insured, at least forty-five days before the expiration date of the policy,

except if the policy provides professional liability coverage for legal and medical

services, the nonrenewal notice must be mailed or delivered at least ninety days

before the policy expiration date. Conclusive proof of mailing and receipt on the third

calendar day after the mailing of the notice is established if the insurer produces:

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

insured's last-known address; or

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

insured at the insured's last-known address using:

(1) IMb tracing; or

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

insured, the insured's last-known address, and the date of mailing.

2. The insurer shall include a statement of the reasons for a nonrenewal with the notice

or shall furnish it upon the written request of the insured. The written request must be

mailed or delivered to the insurer at least ten days prior to the expiration date of the

policy. The insurer shall comply with such a request within ten days after receipt

thereof.

3. No notice of intention not to renew is required when the named insured is given notice

of the insurer's willingness to renew the policy by the mailing or delivering of a renewal

notice, bill, certificate, or policy. If notice as required by this subsection is not provided,

coverage is deemed to be renewed for the ensuing policy period upon payment of the

appropriate premium under the same terms and conditions, and subject to

subsection 1 of section 26.1-39-13, until the named insured has accepted the

replacement coverage with another insurer or until the named insured has agreed to

the nonrenewal.

4. Proof of mailing a notice of intention not to renew or business records of the notice of

the insurer's willingness to renew must be retained for a period of not less than one

year by the insurer or insurance producer giving the notice.
N.D. Cent. Code § 26.1-02.2-10 — ND Code / Title 26.1 / Chapter 26.1-02.2 / Section 26.1-02.2-10
26.1-02.2-10. Rules and regulations
Status: in_force

26.1-02.2-10. Rules and regulations

The commissioner may adopt reasonable rules necessary for the implementation of this

chapter.
N.D. Cent. Code § 26.1-48-05 — ND Code / Title 26.1 / Chapter 26.1-48 / Section 26.1-48-05
26.1-48-05. Financial responsibility
Status: in_force

26.1-48-05. Financial responsibility

An owner of an aircraft or aircraft component manufactured in this state shall provide proof

of financial responsibility in the amount of one hundred thousand dollars, per occurrence, for

property damage and personal injury or death on the ground resulting from the use of the

aircraft or aircraft component.
N.D. Cent. Code § 26.1-21-21 — ND Code / Title 26.1 / Chapter 26.1-21 / Section 26.1-21-21
26.1-21-21. Reinsurance
Status: in_force

26.1-21-21. Reinsurance

The office may reinsure any liability in excess of twenty-five thousand dollars for any

one public official, or group of public officials and public employees under a blanket bond, at a

cost not exceeding the assessment under this chapter. The cost of reinsurance must be paid

from the fund.