All Roll Calls
Yes: 246 • No: 34
North DakotaSB 23742025 Regular SessionSenateWALLET
AN ACT to create and enact two new sections to chapter 26.1-30, two new sections to chapter 26.1-39, a new section to chapter 26.1-44, and a new subsection to section 26.1-46-03 of the North Dakota Century Code, relating to mandatory arbitration endorsements for property insurance, managed repair programs, civil remedy actions against property insurers, notice of property insurance claims, and surplus lines insurance policies; to amend and reenact sections 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, and 26.1-46-08.1 of the North Dakota Century Code, relating to exceptions to unauthorized insurance transactions, exceptions for large commercial risks in fire, property, and casualty insurance rates, surplus lines insurance, risk retention groups and purchasing groups, restrictions on insurance purchased by purchasing groups, and purchasing group taxation and fees; to repeal section 26.1-44-03.3 of the North Dakota Century Code, relating to an exemption from search requirements for licensed surplus line producers; to provide for a legislative management report; and to provide a penalty.
Sponsored By: Jeff Barta (Republican)
Became Law
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 0 costs, 5 mixed.
New rules for producer fees
Producers cannot charge extra fees on personal lines like home, auto, personal life, or health insurance. For commercial accounts, producers may charge fees only with a written, itemized disclosure on a commissioner‑approved form, signed by both sides, and kept for five years. Fees must be reasonable, not used as inducements, and not discriminatory. Risk‑management services carry a higher duty of care. Producers may charge disclosed fees for credit card or electronic payments on agency‑billed premiums. Some limits do not apply to large commercial risks.
New rules for property insurance claims
The law sets clear steps for property claims and disputes. A mandatory arbitration clause is valid only in a separate endorsement you sign on its own form, with a bold 12‑point warning, and any discount shown. If a North Dakota resident is involved, arbitration happens in North Dakota under state law. Your acceptance binds all insureds and stays on renewal unless you ask in writing to remove it. Managed repair programs must be flagged on the declarations page and explained on a 12‑point form; you can still pick your own contractor or ask for another program contractor. You must give claim notice within 1 year of the loss, and give notice of a supplemental claim within 18 months after the last payment for that part of the loss. These time limits pause during a named insured’s combat deployment that blocks filing. You may sue for bad faith only after a court finds a contract breach and enters a final judgment against the insurer. These rules apply to policies issued or renewed after the law takes effect; large commercial risks and most commercial surplus lines are excluded from the arbitration rule.
New rules for purchasing group coverage
A risk retention group from another state that follows this chapter counts as an authorized insurer for North Dakota requirements. If a purchasing group buys from a nonadmitted insurer or an out‑of‑state risk retention group, a licensed producer must place it under surplus lines laws. Members with North Dakota risks must be told there is no state guaranty fund protection and the insurer may not follow all state laws. Group‑wide deductibles, self‑insured retentions, or shared aggregates need a commissioner‑approved disclosure and must let members buy more limits. Premium taxes apply at the same rates as other coverage, paid in order by the insurer, then producer, then the group, then members. Properly disclosed administrative reimbursements are not premium and are not taxed.
Stricter surplus lines rules and exceptions
A surplus lines insurer must have capital and surplus at least the state minimum or $15,000,000, whichever is higher; the commissioner cannot accept under $4,500,000. Policies cannot use surplus lines to satisfy laws that require coverage from a licensed insurer. The exemption from diligent search rules for licensed surplus lines producers is repealed, so producers must perform the required search again. Some large commercial risks may be placed without a North Dakota certificate of authority when they meet the law’s definition.
Insurer control and delegation rules
Owning or holding proxies for 10% or more of an insurer’s voting securities creates a presumption of control. The presumption can be challenged, and the commissioner may decide control after notice and a hearing. A person may use a commissioner‑approved delegation agreement to transfer control to others and avoid being treated as the controller.
Sponsors & Cosponsors
Sponsor
Jeff Barta
Republican • Senate
Cosponsors
Jorin Johnson
Republican • House
Mike Lefor
Republican • House
Jonathan Warrey
Republican • House
David Hogue
Republican • Senate
Jerry Klein
Republican • Senate
Roll Call Votes
House vote • 4/24/2025
Second reading, passed as amended, yeas 79 nays 14
Yes: 79 • No: 14
Senate vote • 4/21/2025
Second reading, passed, yeas 46 nays 1
Yes: 46 • No: 1
House vote • 4/8/2025
Second reading, passed as amended, yeas 76 nays 17
Yes: 76 • No: 17
Senate vote • 2/19/2025
Second reading, passed, yeas 45 nays 2
Yes: 45 • No: 2
Actions Timeline
Filed with Secretary Of State 05/01
5/2/2025HouseSigned by Governor 04/30
5/1/2025SenateSent to Governor
4/29/2025SenateSigned by President
4/29/2025SenateSigned by Speaker
4/28/2025HouseSecond reading, passed as amended, yeas 79 nays 14
4/24/2025HouseConference committee report adopted
4/24/2025HouseReported back from conference committee, in place of, placed on calendar
4/21/2025HouseSecond reading, passed, yeas 46 nays 1
4/21/2025SenateConference committee report adopted
4/21/2025SenateReported back from conference committee, in place of, placed on calendar
4/21/2025SenateConference committee appointed J. Johnson C. Brown Vollmer
4/15/2025HouseConference committee appointed Barta Kessel Klein
4/11/2025SenateRefused to concur
4/11/2025SenateReturned to Senate (12)
4/9/2025SenateSecond reading, passed as amended, yeas 76 nays 17
4/8/2025HouseAmendment adopted, placed on calendar
4/3/2025HouseReported back amended, do pass, amendment placed on calendar 7 4 3
4/2/2025HouseCommittee Hearing 02:30
3/18/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
2/21/2025HouseReceived from Senate
2/20/2025HouseSecond reading, passed, yeas 45 nays 2
2/19/2025SenateAmendment adopted, placed on calendar
2/19/2025SenateReported back amended, do pass, amendment placed on calendar 5 0 0
2/18/2025SenateCommittee Hearing 10:00
2/5/2025Senate
Bill Text
Adopted by the Conference Committee
Adopted by the House Industry, Business and Labor Committee
Adopted by the Senate Industry and Business Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Conference Committee Amendments
FIRST ENGROSSMENT with House Amendments
INTRODUCED
Related Bills
HB 1022 — AN ACT to provide an appropriation for defraying the expenses of the retirement and investment office.
SB 2018 — AN ACT to provide an appropriation for defraying the expenses of the department of commerce; to provide an appropriation to the attorney general; to provide an appropriation to the department of career and technical education; to provide an appropriation to the state fair association; to provide a contingent appropriation; to create and enact a new section to chapter 54-60 of the North Dakota Century Code, relating to department of commerce grant reporting requirements; to amend and reenact subsection 1 of section 10-30.5-02, sections 54-60-09, 54-60-19, 54-60-28, 54-60-29, 54-60-29.1, and 54-60-31 of the North Dakota Century Code, relating to the purpose of the North Dakota development fund, duties and talent strategy of the division of workforce development, the uncrewed aircraft systems program, the uncrewed aircraft systems program fund, the beyond visual line of sight uncrewed aircraft system program, and changing the name of the office of legal immigration to the global talent office; to authorize a Bank of North Dakota line of credit; to provide for a transfer; to provide an application; to provide an exemption; and to provide for a legislative management report.
SB 2323 — AN ACT to amend and reenact sections 57-51-15 and 57-51.1-07.5 of the North Dakota Century Code, relating to oil and gas gross production tax allocations and the state share of oil and gas tax allocations; to provide for a legislative management report; to provide an exemption; and to provide an effective date.
SB 2390 — AN ACT to create and enact three new sections to chapter 54-40.1 of the North Dakota Century Code, relating to a rural catalyst committee, grant program, and fund; to amend and reenact section 54-40.1-02 of the North Dakota Century Code, relating to definitions for regional planning councils; to provide an appropriation; and to provide for a transfer.
SB 2397 — AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, relating to a limited exemption for development incentive wells; to amend and reenact sections 57-51-02.6, 57-51-05, and 57-51.1-01 of the North Dakota Century Code, relating to the temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.
SB 2370 — AN ACT to provide for a legislative management study regarding prescription drug transparency reporting under the federal drug discount program.