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)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 6 benefits, 1 costs, 6 mixed.
Group members get shared-risk coverage warnings
Purchasing groups can use a shared deductible or self-insured retention only with a commissioner-approved disclosure. It must explain in simple terms how members satisfy that shared amount. A shared coverage limit also requires an approved warning that other members’ claims can use up an individual member’s coverage. The policy must let members buy additional limits if coverage runs out, and the disclosure must explain that option.
Insurance gifts allowed within annual cap
Insurance producers can offer eligible gifts, meals, or entertainment worth up to $100 total per person each year. They cannot require a quote or insurance purchase, and gift cards cannot provide cash, premium refunds, or discounts. Public raffles must be free to enter, require no purchase, avoid unfair discrimination, and offer prizes the commissioner considers reasonable. Donations to qualifying 501(c)(3) nonprofits have no dollar cap but cannot encourage an insurance purchase.
Insurers can offer low-cost support services
Insurers and producers can offer qualifying services at no or reduced cost, even outside the policy’s written benefits. Services must relate to coverage and support purposes such as loss prevention, health, financial wellness, or recovery after damage. Offers must use fair, documented criteria, avoid unfair discrimination, and be reasonable compared with premiums or coverage. Providers must give contact information on request. Good-faith pilots can last up to one year after department notice; the department has 21 days to object.
Insurers must explain repair vendor limits
Insurers must explain managed repair programs that limit contractor choice in exchange for a specified discount or other incentive. The policy’s declarations page must identify the restriction and benefit. A separate notice in at least 12-point font must explain repairs, your rights and duties, and any warranty. This applies to policies issued or renewed after the law’s effective date. Programs without a specified discount or other incentive are excluded, and violations can bring penalties.
Group members lose fallback tax liability
For purchasing group coverage on North Dakota risks, the insurance source must pay premium tax first. If it does not pay, responsibility moves to the group’s insurance producer, then to the purchasing group. Individual members are no longer the final fallback for unpaid premium taxes.
Risk groups gain broader insurance recognition
The law expands liability under risk retention and purchasing group rules to include contractual claims and expenses. Liability also includes defense costs, legal fees, and claim expenses tied to injury, property damage, or other loss. Out-of-state risk retention groups that meet North Dakota’s applicable requirements count as authorized insurers for state coverage requirements.
Property bad-faith lawsuits face extra hurdles
A named insured cannot proceed with a bad-faith claim against a property insurer without first winning a contract-breach ruling. A court must also enter a final judgment or decree against the insurer.
Group administration fees require clear disclosure
Purchasing group administrators, managers, and related parties can charge reasonable fees to cover administrative expenses. All members must receive a commissioner-approved disclosure describing the duties and separately listing each member’s fee. These fees are not insurance premiums and are not subject to premium tax.
Insurance rebates and advertising face limits
The law expressly covers insurance producers under restrictions on unapproved rebates, premium discounts, and other sales incentives. Insured people also cannot knowingly accept prohibited benefits; policy terms, approved filings, and legal exceptions still apply. These rules include federal crop insurance. Insurers, producers, and their representatives cannot offer insurance to encourage buying another policy or advertise insurance as “free” or “no cost.”
Later property claims face notice deadlines
Reopened property claims cover damage from the original loss that was not previously identified or disclosed. They are barred unless the insurer gets notice within one year after the loss. Supplemental claims seek added loss or costs after earlier compensation. They require notice within 12 months after the insurer’s last payment for that part of the loss. These deadlines pause during combat-zone or combat-support deployment when it materially affects the named insured’s ability to file.
Property arbitration needs separate written consent
For property policies issued or renewed after the law’s effective date, mandatory arbitration requires the named insured’s separate written consent. The separate form must explain waived rights, including a jury trial, state the premium discount, and use 12-point bold notice. Acceptance or rejection binds all insureds through renewal, replacement, or reinstatement unless the named insured requests a written change. North Dakota residents’ arbitration must occur in North Dakota under state law. Large commercial risks, commercial surplus lines policies, and voluntary agreements made after a dispute starts are excluded.
Large businesses gain insurance rule exemptions
Large commercial risks qualify by meeting any threshold: $25 million in insured property or $50 million in yearly gross revenue. Premium thresholds also qualify: $100,000 for property, $100,000 for general liability, or $200,000 for multiperil insurance. Farming and ranching are excluded. Insurers covering these risks do not need a North Dakota certificate of authority; industrial insureds still owe independently procured insurance taxes. Producers need not provide signed service-fee disclosures or retain them for five years for these clients. Fees must remain reasonable and nondiscriminatory; the personal-lines service-fee ban remains.
Specialty insurance access changes with limits
Surplus lines insurance uses insurers not admitted in North Dakota, and placement rules apply when North Dakota is the insured’s home state. Producers no longer need the former diligent search before placement. They must know the full coverage is unavailable from admitted insurers writing it, or receive a North Dakota-licensed producer’s referral. Insurers must be eligible and authorized to write the coverage where based. Capital and surplus must meet the greater of North Dakota’s minimum or $15 million; approved exceptions cannot fall below $4.5 million. Foreign-country insurers must appear on the NAIC’s international insurer list. Surplus lines policies cannot be designed to satisfy laws requiring coverage from a licensed insurer.
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
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