reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-15 - Internal audit function requirements

Current through Supplement No. 393, July, 2024
1. Exemption. An
				insurer is exempt from the requirements of this section if:
a. The insurer has annual direct written and
				unaffiliated premium, including international direct and assumed premium, but
				excluding premiums reinsured with the federal crop insurance corporation and
				federal flood program, less than five hundred million dollars; and
b. If the insurer is a member of a group of
				insurers, the group has annual direct written and unaffiliated assumed premium,
				including international direct and assumed premium, but excluding premiums
				reinsured with the federal crop insurance corporation and federal flood
				program, less than one billion dollars.
An insurer or group of insurers exempt from the requirements
				  of this section is encouraged, but not required, to conduct a review of the
				  insurer business type, sources of capital, and other risk factors to determine
				  whether an internal audit function is warranted. The potential benefits of an
				  internal audit function should be assessed and compared against the estimated
				  costs.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-02 - Authority to convert

Current through Supplement No. 393, July, 2024
A domestic mutual insurer authorized to do business in this
				  state may not take part in a demutualization unless the demutualization has
				  first been approved by the commissioner in accordance with this chapter. Any
				  domestic mutual insurer may submit to the commissioner a petition to engage in
				  a demutualization without reincorporation, pursuant to the requirements of this
				  chapter. This chapter does not apply to a reorganization of a mutual insurer
				  into a mutual holding company structure, pursuant to North Dakota Century Code
				  chapter 26.1-12.1.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-03 - Board of directors approval

Current through Supplement No. 393, July, 2024
A plan of conversion under this chapter must be adopted by
				  no less than a majority of the board of directors of the converting insurer
				  unless otherwise provided in the articles of incorporation or bylaws.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-05 - Elements of the conversion plan

Current through Supplement No. 393, July, 2024
Any plan of conversion filed pursuant to this chapter must
				  include at least all of the following:
1. Identification of the membership interests
				held or owned by the members of the converting insurer;
2. Identification of the class or classes of
				persons who have an ownership interest in the converting insurer as of the
				record date. If an ownership interest is held by any person who is not as of
				the record date an eligible member, the conversion plan must determine what
				percentage of the ownership interest in the converting insurer is held by
				eligible members in the aggregate, and what percentage of the ownership
				interest is held by each of any other classes of persons and by any other
				entity who holds such interest, such determinations to be made as of the record
				date;
3. A fair and reasonable
				formula, approved by the commissioner, for exchanging the equitable share of
				each eligible member for securities or other consideration, or both, of the
				converted insurer and the disposition of any unclaimed shares. Each eligible
				member must be entitled to receive in exchange for the eligible member's
				equitable share, without additional payment, consideration payable in voting
				common shares of the converted insurer or other consideration, or both. If the
				equitable share of the eligible member entitles the eligible member to receive
				a fractional share of stock, the eligible member must have the option to
				receive the value of the fractional share in cash or to purchase a full share
				by paying the balance in cash;
4.
				The allocation of the consideration mentioned in subsection 3 must take into
				account:
a. The value of the voting rights of
				each eligible member, if any;
b.
				The estimated proportionate contribution of each class of participating
				policies and contracts of insurance to the aggregate consideration being given
				to eligible members; and
c. Such
				other factors that the commissioner finds must be included in order for the
				allocation to be fair and equitable to eligible members and other owners;
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-06 - Appointment of experts

Current through Supplement No. 393, July, 2024
The commissioner may retain, at the converting insurer's
				  expense, such qualified experts or advisors as the commissioner deems
				  reasonably necessary to assist in the review of the conversion plan and the
				  determination of the value of the converting insurer on the record date.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-07 - Hearing

Current through Supplement No. 393, July, 2024
The commissioner shall conduct a public hearing regarding a
				  proposed demutualization within ninety days after submission of a complete
				  petition to the commissioner. Notice of the hearing must be published in five
				  newspapers, one of which must be a daily newspaper published at Bismarck, at
				  least two weeks before the hearing on the petition. Notice shall be mailed by
				  the converting insurer to each member and eligible member, accompanied by a
				  copy of the plan of conversion, at least forty-five days prior to the hearing.
				  At the hearing, the converting insurer, its members, eligible members, and any
				  other person whose interests may be affected by the proposed conversion may
				  present evidence, examine or cross-examine witnesses, and offer oral and
				  written arguments and comments to the extent permitted by, and according to the
				  procedure for adjudicative proceedings under, North Dakota Century Code chapter
				  28-32. The commissioner may approve the conversion of the plan if the
				  commissioner finds the following:
1.
				The conversion plan is fair and equitable to the converting insurer, its
				members, and its eligible members;
2. The conversion plan does not violate the
				law;
3. The converted insurer,
				after the demutualization, will be able to satisfy the requirements for the
				issuance of a certificate of authority to write the line or lines of insurance
				for which it was licensed before the demutualization;
4. Upon demutualization, the paid-in capital
				and surplus of the converted insurer must be in an amount not less than the
				minimum paid-in capital and surplus required to organize a domestic stock
				insurance company;
5. The rights
				of every member in any policy of insurance of the converting insurer, excluding
				voting and dividend rights, if any, may not be adversely affected by the
				demutualization and must continue in full force in accordance with the terms of
				the policy of each such member;
6.
				The financial condition of the converted insurer would not be such as might
				jeopardize its financial stability or prejudice the interest of its
				policyholders and members;
7. The
				demutualization will not affect adversely access to health care by persons
				covered by any health insurance policies or contracts issued by the converting
				insurer;
8. The demutualization is
				not likely to be hazardous or prejudicial to the interests of the members, the
				insureds, or the public; and
9. A
				conversion plan affecting a nonprofit insurer or holding company makes adequate
				provision for the interest of the public in such insurer or holding company.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-08 - Action by commissioner

Current through Supplement No. 393, July, 2024
Within ninety days after the conclusion of the public
				  hearing, the commissioner shall enter an order either approving, conditionally
				  approving, or disapproving the plan. An approval or conditional approval of a
				  conversion plan expires if the demutualization is not completed within one
				  hundred eighty days after the approval or conditional approval unless the time
				  for completion is extended at the commissioner's discretion. An order
				  approving, or approving conditionally, a conversion plan under this chapter
				  does not apply to a demutualization that becomes effective more than thirty
				  days after the date of such order unless no later than five days prior to the
				  date on which the demutualization shall become effective, but in no event any
				  earlier than ten days before such date, the converting insurer shall file with
				  the commissioner the following certifications:
1. A certification that all opinions, private
				letter rulings, revenue rulings, and other such matters relating to the
				material tax consequences of the demutualization remain in full force, true and
				correct as of the anticipated effective date except as expressly and fully
				noted in the certification.
2. A
				certification that there have been no material changes in the converting
				insurer's financial condition which would have a significant effect on any of
				the matters contained in the conversion plan or in the notices provided to
				members and eligible members pursuant to section
				45-03-21-07.
3. If the commissioner's order recites any
				factual bases for approval, or for conditional approval, a certification that
				no such factual bases have changed materially since the date of the order.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-09 - Member approval

Current through Supplement No. 393, July, 2024
Following the commissioner's order, the plan of conversion
				  and the proposed amendments to the articles of incorporation must be submitted
				  to vote of the converting insurer's members and must be approved by an
				  affirmative vote of a majority of votes cast by no fewer than twenty-five
				  percent of the converting insurer's members, who may vote in person or by proxy
				  at a meeting held for that purpose. The meeting may be a regular or special
				  meeting but must be held no earlier than ninety days before the effective date.
				  Following the commissioner's approval, notice of a meeting for the purpose of
				  voting on the plan and amendments must be provided by mail to each member
				  entitled to vote in accordance with the articles of incorporation or bylaws of
				  the converting insurer no earlier than ninety days and no later than thirty
				  days before the date of the meeting. Each member entitled to vote may cast one
				  vote unless provided otherwise in the articles of incorporation or bylaws of
				  the converting insurer.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-10 - Consideration for promoting conversion prohibited

Current through Supplement No. 393, July, 2024
A director, officer, or employee of the converting insurer
				  may not receive any fee, commission, or other valuable consideration
				  whatsoever, other than regular salary and compensation, for in any manner
				  aiding, promoting, or assisting in the demutualization except as set forth in
				  the conversion plan approved by the commissioner. This provision may not be
				  deemed to prohibit the payment of reasonable fees and compensation to attorneys
				  at law, accountants, actuaries, and other consultants for services performed in
				  the independent practice of their professions, even though they may also be
				  directors of the converting insurer.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-11 - Directors and officers

Current through Supplement No. 393, July, 2024
The directors and officers of the converting insurer shall
				  serve the converted insurer until new directors and officers are elected and
				  qualify pursuant to the articles of incorporation and bylaws of the converted
				  insurer.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-12 - Stock acquisition - Limitations

Current through Supplement No. 393, July, 2024
The converted insurer may not, for at least three years
				  following the demutualization, repurchase any of its common shares except
				  pursuant to a pro rata tender offer to all shareholders.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-13 - Action after demutualization

Current through Supplement No. 393, July, 2024
An administrative action or proceeding, pending at the time
				  of the demutualization to which the converting insurer may be a party, may not
				  be abated or discontinued by reason of such demutualization.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-14 - Amendment

Current through Supplement No. 393, July, 2024
A petition to engage in a demutualization filed pursuant to
				  section 45-03-21-02 or a conversion plan
				  governed by this chapter may be amended after it is first filed with the
				  commissioner and is subject to the following provisions:
1. If the amendment is made after approval
				from the commissioner pursuant to section
				45-03-21-08 but prior to member
				approval pursuant to section
				45-03-21-09 and if the
				commissioner determines that the amendment will not affect adversely and
				materially the interest of the converting insurer or its members, the amendment
				must be approved in the same manner as the conversion plan in accordance with
				section 45-03-21-09.
2. If the amendment is made prior to approval
				by the commissioner pursuant to section
				45-03-21-08 and after notice to
				members has been mailed, an amended notice is not required to be mailed to
				members if the commissioner determines that the amendment will not adversely
				and materially affect the interest of the converting insurer or its members.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-15 - Competitive purpose

Current through Supplement No. 393, July, 2024
A person or entity licensed or holding a certificate of
				  authority to transact the business of insurance in the state of North Dakota
				  may not use the possibility that a domestic mutual insurer may demutualize as
				  an inducement to the sale of insurance or for any other competitive purposes.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-02 - Purpose and scope

Current through Supplement No. 393, July, 2024
A mutual insurance holding company and its subsidiary shall
				  comply with North Dakota Century Code chapters 26.1-05 and 26.1-10 and the
				  terms of all other applicable statutes or rules, including statutes or rules
				  regulating investments, material transactions, and changes in control.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-12.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-03 - General rules

Current through Supplement No. 393, July, 2024
1. A merger or
				acquisition not subject to North Dakota Century Code chapter 26.1-12.1
				involving a mutual insurance holding company must be approved by the
				commissioner pursuant to North Dakota Century Code chapter 26.1-07.
2. Each domestic mutual insurance holding
				company shall provide to the commissioner an audited annual statement based
				upon generally accepted accounting principles and statutory accounting
				principles by June first of each year.
3. Unless otherwise specified by the
				commissioner, the mutual insurance holding company's annual statement must
				include:
a. An income statement.
b. A balance sheet.
c. A cash flow statement.
d. An investment plan covering all assets.
e. A statement disclosing any
				intention or agreement to pledge, borrow against, alienate, hypothecate, or
				otherwise encumber the assets of the mutual insurance holding company.
f. Complete information on the
				composition and status of any closed block formed as a part of a plan of
				reorganization.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-05 - Stock hearing

Current through Supplement No. 393, July, 2024
The commissioner may hold a public hearing to consider an
				  application for approval of a stock offering. Upon receipt of an application
				  for approval of an offering that includes an initial stock offering, the
				  commissioner may hold a public hearing at which all interested parties may
				  appear and present evidence and argument regarding the applicant's planned
				  offering. If a hearing is held, the commissioner must publish notice of the
				  hearing in at least one newspaper of general circulation in the state. The
				  applicant must provide its policyholders with notice of the hearing at least
				  twenty, but not more than sixty, days prior to the hearing by regular mail. The
				  notice must be approved by the commissioner. Following the hearing, the
				  commissioner may approve, conditionally approve, or deny the application.
1. The commissioner must approve the
				offering if the applicant demonstrates clearly that:
a. The offering complies with this chapter
				and other provisions of law;
b.
				The method for establishing the price of the offering is consistent with
				generally accepted market or industry practices; and
c. The plan and offering will not be unfair
				or contrary to the financial interests of the members of the mutual insurance
				holding company.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-06 - Subsequent offerings

Current through Supplement No. 393, July, 2024
Notwithstanding the provisions of section
				  45-03-22-05, stock offerings that
				  are not initial stock offerings must be approved by the commissioner and must
				  be made in accordance with the following:
1. If an insurance company subsidiary of a
				mutual insurance holding company, an intermediate holding company subsidiary of
				a mutual insurance holding company, or an insurance company subsidiary of an
				intermediate holding company subsidiary to a mutual insurance holding company
				intends to make a stock offering that would be governed by the provisions of
				this section, then that entity must deliver to the commissioner, not less than
				thirty days prior to the offering, a notice of the planned offering which
				includes:
a. The total number of shares to be
				offered;
b. The intended date of
				sale;
c. A record of the trading
				price and volume of the security during the prior fifty-two weeks;
d. Evidence that, after the completion of the
				offering, the mutual insurance holding company will retain ownership of a
				majority of the voting shares of the capital stock of the reorganized insurer
				as required by North Dakota Century Code section 26.1-12.1-02; and
e. Such other information the commissioner
				may deem necessary.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-07 - Prohibited practices

Current through Supplement No. 393, July, 2024
The following practices are prohibited:
1. Borrowing funds by the mutual insurance
				holding company or its subsidiaries or affiliates from the mutual insurance
				holding company's subsidiary or affiliates to finance the purchase of a stock
				offering by the reorganized insurer.
2. Payment of a commission, special fee, or
				any other special payment or extraordinary compensation to an officer,
				director, interested person, or affiliate for arranging, promoting, aiding, or
				assisting in the reorganization of the mutual insurance holding company or for
				arranging, promoting, aiding, assisting, or participating in the structuring or
				placement of an offering of securities except as permitted by the commissioner.
3. Avoiding this chapter by
				entering into an understanding or agreement transferring a legal or beneficial
				ownership of voting securities to another person.
4. The publication of a prospectus,
				information, sales material, or sales presentation by the applicant, or by any
				representative, agent, or affiliate of the applicant, may not contain a
				representation that the commissioner's approval of an offering constitutes an
				endorsement of the price, price range, fairness, suitability, or any other
				information or matter relating to the offered securities or arising from the
				offering. The front of the prospectus must contain in boldface type a statement
				that the commissioner's approval of an offering does not constitute an
				endorsement of the price, price range, fairness, suitability, or any other
				information or matter.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-12.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules › Section 45-03-22-08 - Reporting of stock ownership and transactions

Current through Supplement No. 393, July, 2024
A director or officer of a mutual insurance holding company,
				  its subsidiary, or affiliate who acquires directly or indirectly the beneficial
				  ownership of any security issued by any member of the mutual insurance holding
				  company system, within fifteen days following the transaction, shall file with
				  the commissioner a statement of the transaction on a form prescribed by the
				  commissioner.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-12.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-23 - Regulation on the Use of Clearing Corporations and Federal Reserve Book-Entry System by Insurance Companies › Section 45-03-23-03 - Deposit with affiliates - Requirements

Current through Supplement No. 393, July, 2024
1. Nothing prevents an insurance company from
				depositing securities with another insurance company with which the depositing
				insurance company is affiliated, provided that the securities are deposited
				pursuant to a written agreement authorized by the board of directors of the
				depositing insurance company or an authorized committee of the board and that
				the receiving insurance company is organized under the laws of one of the
				states of the United States or of the District of Columbia. If the respective
				states of domicile of the depositing and receiving insurance companies are not
				the same, the depositing insurance company shall have given notice of such
				deposit to the insurance commissioner in the state of its domicile and the
				commissioner shall not have objected to it within thirty days of the receipt of
				the notice.
2. The terms of the
				agreement must comply with the following:
a.
				The insurance company receiving the deposit shall maintain records adequate to
				identify and verify the securities belonging to the depositing insurance
				company.
b. The receiving
				insurance company shall allow representatives of any appropriate regulatory
				body to examine records relating to securities held subject to the agreement.
c. The depositing insurance
				company may authorize the receiving insurance company:
(1) To hold the securities of the depositing
				insurance company in bulk, in certificates issued in the name of the receiving
				insurance company or its nominee, and to commingle them with securities owned
				by other affiliates of the receiving insurance company; and
(2) To provide for such securities to be held
				by a custodian, including the custodian of securities of the receiving
				insurance company or in a clearing corporation.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-24 - Unclaimed Life Insurance Benefits › Section 45-03-24-01 - Commissioner's authority

Current through Supplement No. 393, July, 2024
Pursuant to North Dakota Century Code chapter 26.1-55, the
				  commissioner may approve a transition plan and timeline temporarily waiving
				  some or all of the requirements of chapter 26.1 -55 to allow insurance
				  companies to phase into compliance with chapter 26.1-55.
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC
					 26.1-55
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-24 - Unclaimed Life Insurance Benefits › Section 45-03-24-02 - Applicability

Current through Supplement No. 393, July, 2024
Companies failing to receive transition plan approval or
				  failing to meet a timeline approved by the commissioner must comply with North
				  Dakota Century Code chapter 26.1-55.
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC
					 26.1-55
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-24 - Unclaimed Life Insurance Benefits › Section 45-03-24-03 - Requirements

Current through Supplement No. 393, July, 2024
The commissioner may approve a transition plan temporarily
				  waiving some or all of the requirements of North Dakota Century Code chapter
				  26.1-55 if:
1. The company
				demonstrates and the commissioner determines implementation of the requirements
				of chapter 26.1-55 will cause legitimate financial hardship;
2. The insurance company transition plan is
				submitted to the commissioner at least six months prior to the waiver date
				requested; and
3. The transition
				plan includes a timeline to convert electronic records and implement electronic
				searches within a reasonable time as determined by the commissioner.
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC
					 26.1-55
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-25 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE MODEL REGULATION › Section 45-03-25-01 - Authority

Current through Supplement No. 393, July, 2024
This chapter is adopted pursuant to the authority granted by
				  North Dakota Century Code chapter 26.1-10.3.
General Authority:
NDCC 26.1-10.3
Law Implemented:
NDCC 26.1-10.3
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-25 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE MODEL REGULATION › Section 45-03-25-02 - Purpose

Current through Supplement No. 393, July, 2024
The purpose of this chapter is to set forth the procedures
				  for filing and the required contents of the corporate governance annual
				  disclosure, deemed necessary by the commissioner to carry out the provisions of
				  North Dakota Century Code chapter 26.1-10.3.
General Authority:
NDCC 26.1-10.3
Law Implemented:
NDCC 26.1-10.3
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-25 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE MODEL REGULATION › Section 45-03-25-03 - Definitions

Current through Supplement No. 393, July, 2024
1. "Board" means an insurer's or insurance
				group's board of directors.
2.
				"Commissioner" means the North Dakota insurance commissioner.
3. "Insurance group" for the purpose of this
				chapter means those insurers and affiliates included within an insurance
				holding company system as defined in North Dakota Century Code section
				26.1-10-01.
4. "Insurer" has the
				same meaning as set forth in North Dakota Century Code section 26.1-29-02,
				except that it does not include agencies, authorities or instrumentalities of
				the United States, its possessions and territories, the Commonwealth of Puerto
				Rico, the District of Columbia, or a state or political subdivision of a
				state.
5. "Senior management" means
				any corporate officer responsible for reporting information to the board of
				directors at regular intervals or providing this information to shareholders or
				regulators and includes the chief executive officer, chief financial officer,
				chief operations officer, chief procurement officer, chief legal officer, chief
				information officer, chief technology officer, chief revenue officer, chief
				visionary officer, or any other "C" level executive.
General Authority:
NDCC 26.1-10.3
Law Implemented:
NDCC 26.1-10.3
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-25 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE MODEL REGULATION › Section 45-03-25-05 - Contents of corporate governance annual disclosure

Current through Supplement No. 393, July, 2024
1. The insurer or insurance group shall be as
				descriptive as possible in completing the corporate governance annual
				disclosure, with inclusion of attachments or example documents used in the
				governance process, since these may provide a means to demonstrate the
				strengths of their governance framework and practices.
2. The corporate governance annual disclosure
				must describe the insurer's or insurance group's corporate governance framework
				and structure including consideration of the following:
a. The board and various committees thereof
				ultimately responsible for overseeing the insurer or insurance group and the
				level at which that oversight occurs (e.g., ultimate control level,
				intermediate holding company, or legal entity). The insurer or insurance group
				shall describe and discuss the rationale for the current board size and
				structure; and
b. The duties of the
				board and each of its significant committees and how they are governed (e.g.,
				bylaws, charters, and informal mandates), as well as how the board's leadership
				is structured, including a discussion of the roles of chief executive officer
				and chairman of the board within the organization.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-25 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE MODEL REGULATION › Section 45-03-25-06 - Severability clause

Current through Supplement No. 393, July, 2024
If any provision of this chapter, or the application of this
				  chapter to any person or circumstance, is held invalid, the validity does not
				  affect other provisions or applications of this chapter which can be given
				  effect without the invalid provision or application, and to that end the
				  provisions of this chapter are severable.
General Authority:
NDCC 26.1-10.3
Law Implemented:
NDCC 26.1-10.3
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-01 - Authority

Current through Supplement No. 393, July, 2024
This chapter is adopted pursuant to the authority granted by
				  North Dakota Century Code chapter 26.1-31.2.
General Authority:
NDCC 26.1-31.2-04
Law Implemented:
NDCC
					 26.1-31.2-04
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-02 - Purpose

Current through Supplement No. 393, July, 2024
The purpose and intent of this chapter is to establish
				  standards governing reserve financing arrangements pertaining to life insurance
				  policies containing guaranteed nonlevel gross premiums, guaranteed nonlevel
				  benefits and universal life insurance policies with secondary guarantees; and
				  to ensure that, with respect to each such financing arrangement, funds
				  consisting of primary security and other security, as defined in section
				  45-03-26-05, are held by or on behalf of ceding insurers in the forms and
				  amounts required herein. In general, reinsurance ceded for reserve financing
				  purposes has one or more of the following characteristics: some or all of the
				  assets used to secure the reinsurance treaty or to capitalize the
				  reinsurer:
1. Are issued by the ceding
				insurer or its affiliates;
2. Are
				not unconditionally available to satisfy the general account obligations of the
				ceding insurer; or
3. Create a
				reimbursement, indemnification or other similar obligation on the part of the
				ceding insurer or any if its affiliates, other than a payment obligation under
				a derivative contract acquired in the normal course and used to support and
				hedge liabilities pertaining to the actual risks in the policies ceded pursuant
				to the reinsurance treaty.
General Authority:
NDCC 26.1-31.2-04
Law Implemented:
NDCC
					 26.1-31.2
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-03 - Applicability

Current through Supplement No. 393, July, 2024
This chapter shall apply to reinsurance treaties that cede
				  liabilities pertaining to covered policies, as that term is defined in
				  subsection 2 of section 45-03-26-05, issued by any life insurance company
				  domiciled in this state. This chapter and North Dakota Century Code chapter
				  26.1-31.2 shall both apply to such reinsurance treaties.
General Authority:
NDCC 26.1-31.2-04
Law Implemented:
NDCC
					 26.1-31.2
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-04 - Exemptions from this chapter

Current through Supplement No. 393, July, 2024
This chapter does not apply to the situations described in
				  subsections 1 through 6.
1.
				Reinsurance of:
a. Policies that satisfy the
				criteria for exemption set forth in subsection 6 of section 45-04-12-04 or
				subsection 7 of section 45-04-12-04 and which are issued before the later of:
(1) The effective date of this chapter,
				and
(2) The date on which the
				ceding insurer begins to apply the provisions of VM-20 to establish the ceded
				policies' statutory reserves, but in no event later than January 1,
				2020;
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-05 - Definitions

Current through Supplement No. 393, July, 2024
1. "Actuarial
				method" means the methodology used to determine the required level of primary
				security, as described in section 45-03-26-06.
2. "Covered policies" means subject to the
				exemptions described in section 45-03-26-04, covered policies are those
				policies, other than grandfathered policies, of the following policy types:
a. Life insurance policies with guaranteed
				nonlevel gross premiums or guaranteed nonlevel benefits, or both, except for
				flexible premium universal life insurance policies; or
b. Flexible premium universal life insurance
				policies with provisions resulting in the ability of a policyholder to keep a
				policy in force over a secondary guarantee period.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-08 - Severability

Current through Supplement No. 393, July, 2024
If any provision of this chapter is held invalid, the
				  remainder shall not be affected.
General Authority:
NDCC 26.1-31.2-04
Law Implemented:
NDCC
					 26.1-31.2
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-26 - Term and Universal Life Insurance Reserve Financing Model Regulation › Section 45-03-26-09 - Prohibition against avoidance

Current through Supplement No. 393, July, 2024
No insurer that has covered policies as to which this chapter
				  applies as set forth in section 45-03-26-03 may take any action or series of
				  actions, or enter into any transaction or arrangement or series of transactions
				  or arrangements if the purpose of such action, transaction or arrangement, or
				  series thereof is to avoid the requirements of this chapter, or to circumvent
				  its purpose and intent, as set forth in section 45-03-26-02.
General Authority:
NDCC 26.1-31.2-04
Law Implemented:
NDCC
					 26.1-31.2
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-01 - Purpose

Current through Supplement No. 393, July, 2024
1. The purpose of this chapter is to require
				insurers to deliver to purchasers of life insurance, information which will
				improve the buyer's ability to select the most appropriate plan of life
				insurance for the buyer's needs, improve the buyer's understanding of the basic
				features of the policy which has been purchased or which is under
				consideration, and improve the ability of the buyer to evaluate the relative
				costs of similar plans of life insurance.
2. This chapter does not prohibit the use of
				additional material which is not in violation of this chapter or any other
				(state) statute or regulation.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-08,
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-02 - Scope

Current through Supplement No. 393, July, 2024
1. Except as hereafter exempted, this chapter
				shall apply to any solicitation, negotiation, or procurement of life insurance
				occurring within this state. This chapter shall apply to any issuer of life
				insurance contracts including fraternal benefit societies.
2. Unless otherwise specifically included,
				this chapter shall not apply to:
a.
				Annuities.
b. Credit life
				insurance.
c. Group life insurance.
d. Life insurance policies issued
				in connection with pension and welfare plans as defined by and which are
				subject to the federal Employee Retirement Income Security Act of 1974.
e. Variable life insurance under
				which the death benefits and cash values vary in accordance with unit values of
				investments held in a separate account.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-04 - Disclosure requirements

Current through Supplement No. 393, July, 2024
1. The
				insurer shall provide, to all prospective purchasers, a buyer's guide and a
				policy summary prior to accepting the applicant's initial premium or premium
				deposit, unless the policy for which application is made contains an
				unconditional refund provision of at least ten days or unless the policy
				summary contains such an unconditional refund offer, in which event the buyer's
				guide and policy summary must be delivered with the policy or prior to delivery
				of the policy.
2. The insurer
				shall provide a buyer's guide and a policy summary to any prospective purchaser
				upon request.
3. In the case of
				policies whose equivalent level death benefit does not exceed five thousand
				dollars, the requirement for providing a policy summary will be satisfied by
				delivery of a written statement containing the information described in
				subdivisions b, c, d, paragraphs 1, 2, and 3 of subdivision e, and subdivisions
				f, g, h, j, and k, all of subsection 7 of section
				45-04-01-03.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-08,
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-05 - General rules

Current through Supplement No. 393, July, 2024
1. Each insurer
				shall maintain at its home office or principal office a complete file
				containing one copy of each document authorized by the insurer for use pursuant
				to this chapter. The file shall contain one copy of each authorized form for a
				period of three years following the date of its last authorized use.
2. An agent shall inform the prospective
				purchaser, prior to commencing a life insurance sales presentation, that the
				agent is acting as a life insurance agent and inform the prospective purchaser
				of the full name of the insurance company which the agent is representing to
				the buyer. In sales situations in which an agent is not involved, the insurer
				shall identify its full name.
3.
				Terms such as financial planner, investment advisor, financial consultant, or
				financial counseling shall not be used in such a way as to imply that the
				insurance agent is generally engaged in an advisory business in which
				compensation is unrelated to sales unless such is actually the case.
4. Any reference to policy dividends must
				include a statement that dividends are not guaranteed.
5. A system or presentation which does not
				recognize the time-value of money through the use of appropriate interest
				adjustments shall not be used for comparing the cost of two or more life
				insurance policies. Such a system may be used for the purpose of demonstrating
				a cash-flow pattern of a policy if such presentation is accompanied by a
				statement disclosing that the presentation does not recognize that, because of
				interest, a dollar in the future has less value than a dollar today.
6. A presentation of benefits shall not
				display guaranteed and nonguaranteed benefits as a single sum unless they are
				shown separately in close proximity thereto.
7. A statement regarding the use of life
				insurance cost indexes shall include an explanation to the effect that the
				indexes are useful only for the comparison of the relative costs of two or more
				similar policies.
8. A life
				insurance cost index which reflects dividends or an equivalent level annual
				dividend shall be accompanied by a statement that it is based on the company's
				current dividend scale and is not guaranteed.
9. For the purposes of this chapter, the
				annual premium for a basic policy or rider, for which the company reserves the
				right to change the premium, shall be the maximum annual premium.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-08,
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-06 - Failure to comply

Current through Supplement No. 393, July, 2024
Failure of an insurer to provide or deliver a buyer's guide,
				  or a policy summary as provided in section
				  45-04-01-04 shall constitute an
				  omission which misrepresents the benefits, advantages, conditions, or terms of
				  an insurance policy.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-08,
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01 - Life Insurance Solicitation › Section 45-04-01-07 - Effective date

Current through Supplement No. 393, July, 2024
This chapter shall apply to all solicitations of life
				  insurance which commence on or after January 1, 1980. Amendments to subsections
				  1 and 7 of section
				  45-04-01-03 and the appendix are
				  effective January 1, 1997.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-08,
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-01 - Applicability and scope

Current through Supplement No. 393, July, 2024
This chapter is intended to ensure that illustrations do not
				  mislead purchasers of life insurance and to make illustrations more
				  understandable. As far as possible, insurers will eliminate the use of
				  footnotes and caveats and define terms used in the illustration in language
				  that would be understood by a typical person within the segment of the public
				  to which the illustration is directed. This chapter applies to all group and
				  individual life insurance policies and certificates except:
1. Variable life insurance;
2. Individual and group annuity contracts;
3. Credit life insurance; or
4. Life insurance policies with no
				illustrated death benefits on any individual exceeding ten thousand dollars.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-33-02