All Roll Calls
Yes: 139 • No: 1
North DakotaHB 11242025 Regular SessionHouseWALLET
AN ACT to amend and reenact sections 26.1-10-01, 26.1-10-04, 26.1-10-05, and 26.1-10-07 of the North Dakota Century Code, relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
Sponsored By: House Industry, Business and Labor
Became Law
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 2 costs, 2 mixed.
Tougher rules for affiliate deals
Deals between an insurer and its affiliates must be fair, with reasonable charges and clear records. Insurers must give the commissioner 30 days’ notice before large affiliate deals, such as those at 3% of admitted assets (life) or the smaller of 3% of assets or 25% of surplus (nonlife); reinsurance at 5% of surplus; and big guarantees or affiliate investments. The law blocks plans that split deals to dodge these limits, and the commissioner reviews deals for harm to policyholders. If an insurer becomes hazardous, the commissioner can require a deposit or bond up to one year of contract value. Insurer records and premiums held by affiliates remain the insurer’s property, key service affiliates are subject to receivership orders, and the commissioner can judge surplus using risk, reinsurance, and affiliate investment quality.
Broader reporting for insurer groups
Insurers in a holding company system that do business in North Dakota must register and file detailed statements on affiliates, governance, and taxes; foreign insurers may be exempt if their home rules are similar. Filers must update changes within 15 days after month‑end and include a summary of changes. People in the group must share needed information, and small items at 0.5% or less of prior‑year admitted assets are not material for registration. The ultimate controlling person must file a yearly enterprise risk report, an annual group capital calculation unless exempt, and liquidity stress test results when in scope; scope changes take effect on January 1 after adoption. The commissioner may allow consolidated filings or grant deemed affiliation disclaimers unless disallowed within 30 days, late or missing filings are violations, and the department must be told within 30 days when the group’s holdings pass 10% of a company’s voting stock.
Stricter checks on big insurer dividends
A domestic insurer cannot pay an extraordinary dividend until the commissioner gets 30 days’ notice and does not disapprove, or approves sooner. A dividend is extraordinary if, with other payouts in 12 months, it exceeds the smaller of 10% of surplus or the insurer’s recent net gain or income. Nonlife insurers may add up to two prior years of net income to that test. Shareholders gain no rights from a conditional declaration until approval or the 30‑day period ends. Insurers must also report each dividend within 5 business days after it is declared and at least 10 business days before payment.
Confidential handling of insurer oversight data
The law makes exam and investigation records confidential and not public records or usable in private lawsuits. It also keeps group capital and liquidity stress test filings confidential. The commissioner may share these with other regulators, the NAIC, or consultants, but only under written confidentiality agreements. Sharing does not waive privilege and does not hand off the commissioner's authority. People who receive the materials, including the commissioner, cannot be forced to testify about them in private civil cases.
No public rankings from capital tests
The law treats group capital calculations, ratios, and liquidity stress tests as supervisory tools, not public rankings. It bans misleading public statements about those numbers or disclosures. An insurer may publish a narrow written rebuttal to correct a materially false statement after proving it to the commissioner.
Sponsors & Cosponsors
Sponsor
House Industry, Business and Labor
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/7/2025
Second reading, passed, yeas 46 nays 1
Yes: 46 • No: 1
House vote • 1/14/2025
Second reading, passed, yeas 93 nays 0
Yes: 93 • No: 0
Actions Timeline
Filed with Secretary Of State 03/18
3/19/2025HouseSigned by Governor 03/17
3/18/2025HouseSent to Governor
3/14/2025HouseSigned by Speaker
3/14/2025HouseSigned by President
3/12/2025SenateReturned to House
3/10/2025HouseSecond reading, passed, yeas 46 nays 1
3/7/2025SenateReported back, do pass, place on calendar 5 0 0
2/21/2025SenateCommittee Hearing 09:00
2/18/2025SenateIntroduced, first reading, referred Industry and Business Committee
2/5/2025SenateReceived from House
1/15/2025SenateSecond reading, passed, yeas 93 nays 0
1/14/2025HouseReported back, do pass, place on calendar 12 0 2
1/13/2025HouseCommittee Hearing 09:00
1/13/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
1/7/2025House
Bill Text
Enrollment
INTRODUCED
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