# North Dakota SB 2374: 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.

North Dakota SB 2374, 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., is a 2025 Regular Session Senate bill sponsored by Jeff Barta (Republican); status signed, last action 2025-05-02 (Filed with Secretary Of State 05/01); PRIA reads it as touching household money (as of 2026-10-18).

- Canonical: https://policyrisk.com/state-bill/ND-SB2374-202501
- As of: 2026-10-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: North Dakota SB 2374
- State: North Dakota
- Session: 2025 Regular Session
- Title: 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.
- Status: signed
- Chamber: Senate
- Introduced: 2025-01-27
- Last action: 2025-05-02, Filed with Secretary Of State 05/01
- Sponsor: Jeff Barta (Republican)
- Cosponsors: 5
- Touches household money: yes
- Roll calls: 4 (246 yes, 34 no in all)
- Economic provisions PRIA read: 13

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Group members get shared-risk coverage warnings: benefit, low. 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…
- Insurance gifts allowed within annual cap: benefit, low. 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 u…
- Insurers can offer low-cost support services: benefit, low. 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, avo…
- Insurers must explain repair vendor limits: benefit, low. 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…
- Group members lose fallback tax liability: benefit, low. 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: benefit, low. 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 app…
- Property bad-faith lawsuits face extra hurdles: cost, low. 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: mixed, low. 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 s…
- Insurance rebates and advertising face limits: mixed, low. 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 i…
- Later property claims face notice deadlines: mixed, low. 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…
- Property arbitration needs separate written consent: mixed, low. 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 rejectio…
- Large businesses gain insurance rule exemptions: mixed, low. 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…
- Specialty insurance access changes with limits: mixed, low. 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 re…

## Sponsors and cosponsors

- Sponsor: Jeff Barta (Republican), Senate
- Cosponsor: Jorin Johnson (Republican), House
- Cosponsor: Mike Lefor (Republican), House
- Cosponsor: Jonathan Warrey (Republican), House
- Cosponsor: David Hogue (Republican), Senate
- Cosponsor: Jerry Klein (Republican), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2025-04-24 | House | Second reading, passed as amended, yeas 79 nays 14 | pass | 79 | 14 |   |
| 2025-04-21 | Senate | Second reading, passed, yeas 46 nays 1 | pass | 46 | 1 |   |
| 2025-04-08 | House | Second reading, passed as amended, yeas 76 nays 17 | pass | 76 | 17 |   |
| 2025-02-19 | Senate | Second reading, passed, yeas 45 nays 2 | pass | 45 | 2 |   |

## Actions (26)

- 2025-05-02: Filed with Secretary Of State 05/01 (House)
- 2025-05-01: Signed by Governor 04/30 (Senate)
- 2025-04-29: Sent to Governor (Senate)
- 2025-04-29: Signed by President (Senate)
- 2025-04-28: Signed by Speaker (House)
- 2025-04-24: Second reading, passed as amended, yeas 79 nays 14 (House)
- 2025-04-24: Conference committee report adopted (House)
- 2025-04-21: Reported back from conference committee, in place of, placed on calendar (House)
- 2025-04-21: Second reading, passed, yeas 46 nays 1 (Senate)
- 2025-04-21: Conference committee report adopted (Senate)
- 2025-04-21: Reported back from conference committee, in place of, placed on calendar (Senate)
- 2025-04-15: Conference committee appointed J. Johnson C. Brown Vollmer (House)
- 2025-04-11: Conference committee appointed Barta Kessel Klein (Senate)
- 2025-04-11: Refused to concur (Senate)
- 2025-04-09: Returned to Senate (12) (Senate)
- 2025-04-08: Second reading, passed as amended, yeas 76 nays 17 (House)
- 2025-04-03: Amendment adopted, placed on calendar (House)
- 2025-04-02: Reported back amended, do pass, amendment placed on calendar 7 4 3 (House)
- 2025-03-18: Committee Hearing 02:30 (House)
- 2025-02-21: Introduced, first reading, referred Industry, Business and Labor Committee (House)
- 2025-02-20: Received from Senate (House)
- 2025-02-19: Second reading, passed, yeas 45 nays 2 (Senate)
- 2025-02-19: Amendment adopted, placed on calendar (Senate)
- 2025-02-18: Reported back amended, do pass, amendment placed on calendar 5 0 0 (Senate)
- 2025-02-05: Committee Hearing 10:00 (Senate)
- 2025-01-27: Introduced, first reading, referred Industry and Business Committee (Senate)

## Bill text

- Adopted by the Conference Committee: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02002m.pdf)
- Adopted by the House Industry, Business and Labor Committee: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02001m.pdf)
- Adopted by the Senate Industry and Business Committee: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-01001m.pdf)
- Enrollment: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-05000.pdf)
- FIRST ENGROSSMENT: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02000.pdf)
- FIRST ENGROSSMENT with Conference Committee Amendments: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-04000.pdf)
- FIRST ENGROSSMENT with House Amendments: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-03000.pdf)
- INTRODUCED: [PDF](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-01000.pdf)

## Related bills

- 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 f… (signed)
- HB 1298: AN ACT to amend and reenact sections 39-06.1-06, 39-09-02, 39-09-04, and 39-09-07.1, and subsection 2 of section 40-05-06 of the North Dakota Century Code, rel… (signed)
- HB 1229: AN ACT to create and enact a new subdivision to subsection 2 of section 39-06.1-06 and section 39-10-71.1 of the North Dakota Century Code, relating to statuto… (signed)
- SB 2113: AN ACT to create and enact two new sections to chapter 50-06 of the North Dakota Century Code, relating to certified community behavioral health clinics and th… (signed)
- SB 2147: AN ACT to create and enact a new subsection to section 15-10-38.4, a new subsection to section 15-62.4-03, a new section to chapter 15-62.4, and a new subsecti… (signed)
- 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… (signed)

## Sources
- [Adopted by the Conference Committee (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02002m.pdf)
- [Adopted by the House Industry, Business and Labor Committee (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02001m.pdf)
- [Adopted by the Senate Industry and Business Committee (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-01001m.pdf)
- [Enrollment (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-05000.pdf)
- [FIRST ENGROSSMENT (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-02000.pdf)
- [FIRST ENGROSSMENT with Conference Committee Amendments (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-04000.pdf)
- [FIRST ENGROSSMENT with House Amendments (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-03000.pdf)
- [INTRODUCED (PDF)](https://ndlegis.gov/assembly/69-2025/regular/documents/25-1236-01000.pdf)

## Related
- [SB 2390: AN ACT to create and enact three new sections to chapter 54-40.1 of the North D…](https://policyrisk.com/state-bill/ND-SB2390-202501)
- [HB 1298: AN ACT to amend and reenact sections 39-06.1-06, 39-09-02, 39-09-04, and 39-09-…](https://policyrisk.com/state-bill/ND-HB1298-202501)
- [HB 1229: AN ACT to create and enact a new subdivision to subsection 2 of section 39-06.1…](https://policyrisk.com/state-bill/ND-HB1229-202501)
- [SB 2113: AN ACT to create and enact two new sections to chapter 50-06 of the North Dakot…](https://policyrisk.com/state-bill/ND-SB2113-202501)
- [SB 2147: AN ACT to create and enact a new subsection to section 15-10-38.4, a new subsec…](https://policyrisk.com/state-bill/ND-SB2147-202501)
- [SB 2018: AN ACT to provide an appropriation for defraying the expenses of the department…](https://policyrisk.com/state-bill/ND-SB2018-202501)
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Source: PRIA, https://policyrisk.com/state-bill/ND-SB2374-202501 (as of 2026-10-18).