North Dakota Administrative Code

1. Applications for fire, allied, homeowner's multiple peril, farmowner's multiple peril, commercial multiple peril, or crop hail insurance coverage for property in this state must identify by fire district number the fire district in which the property is located. 2. A company u…

In accordance with section 45-03-18-01, a company shall apportion the property premium attributable to each fire district on the basis of the location of the property and the insured value of the property in each district. History: Effective August 9, 1993. General Authority: NDC…

The insurance department, in conjunction with the state fire marshal and the firemen's association, shall prepare an atlas of county maps showing the fire districts in each county. The atlas must certify the fire districts as of July first of each year. A copy of the atlas must b…

The insurance department is responsible for the collection, verification, and accuracy of data reported to the insurance department along with its annual statement. The company may file the appropriate information by computer diskette subject to the specifications set forth by th…

In the lines of homeowner's multiple peril, farmowner's multiple peril, and commercial multiple peril insurance companies shall subtract any liability premium from the total premium to arrive at the property premium. For package policies containing numerous subcoverages with mino…

This chapter applies to all life insurance companies and fraternal benefit societies doing business in this state and to all life insurance companies and fraternal benefit societies that are authorized to reinsure life insurance, annuities, or accident and health insurance busine…

1. "Actuarial standards board" means the board established by the American academy of actuaries to develop and promulgate standards of actuarial practice. 2. "Annual statement" means the statement required by North Dakota Century Code section 26.1-03-07 to be filed annually by th…

1. Submission of statement of actuarial opinion. a. There must be included on or attached to page one of the annual statement for each year beginning 1995 the statement of an appointed actuary, entitled "statement of actuarial opinion", setting forth an opinion relating to reserv…

Repealed effective March 1, 2004.

Repealed effective March 1, 2004.

1. The statement of actuarial opinion submitted in accordance with this section must consist of: a. A paragraph identifying the appointed actuary and the appointed actuary's qualifications (see subdivision a of subsection 2). b. A scope paragraph identifying the subjects on which…

and regulatory asset adequacy issues summary. 1. General. a. In accordance with North Dakota Century Code section 26.1-35-01.1, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of the opinion regarding the reserves. The memor…

Repealed effective March 1, 2004. 13

1. Statement of actuarial opinion. Every property and casualty insurance company doing business in this state, unless otherwise exempted by the domiciliary commissioner, shall annually submit to the North Dakota insurance commissioner the opinion of an appointed actuary entitled …

1. The purpose of this chapter is to improve the North Dakota insurance department's surveillance of the financial condition of insurers by requiring: a. An annual audit of financial statements reporting the financial position and the results of operations of insurers by independ…

The terms and definitions in this section are intended to provide definitional guidance as the terms are used within this chapter. 1. "Accountant" or "independent certified public accountant" means an independent certified public accountant or accounting firm in good standing wit…

audited financial reports and audit committee appointment. 1. All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the commissioner on or before June first for the year ended December thirty-first im…

The annual audited financial report must report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cashflows, and changes in capital and surplus for the year then ended in conformity with statutory accounting pr…

1. Each insurer required by this chapter to file an annual audited financial report within sixty days after becoming subject to the requirement, shall register with the commissioner in writing the name and address of the independent certified public accountant or accounting firm …

1. The commissioner shall not recognize any person or firm as a qualified independent certified public accountant if the person or firm: a. Is not in good standing with the American institute of certified public accountants and in all states in which the accountant is licensed to…

An insurer may make written application to the commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or one …

Financial statements furnished under section 45-03-20-04 must be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU 319 of the …

1. The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days to the board of directors or its audit committee any determination by the independent certified public…

1. In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in its internal controls over financial reporting noted during the audit. Such communication shall be prepare…

The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: 1. That the accountant is independent with respect to the insurer and conforms to the standards of the accountant's profession a…

accountant workpapers. 1. Workpapers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the independent certified public accountant's audit of the …

This section shall not apply to foreign or alien insurers licensed in this state or an insurer that is a SOX-compliant entity or a direct or indirect wholly owned subsidiary of a SOX-compliant entity. 1. The audit committee shall be directly responsible for the appointment, compe…

documents. 1. No director or officer of an insurer shall, directly or indirectly: a. Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter; or b. Omit to state, or ca…

1. Every insurer required to file an audited financial report pursuant to this chapter that has annual direct written and assumed premiums, excluding premiums reinsured with the federal crop insurance corporation and federal flood program, of five hundred million dollars or more …

1. Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizatio…

1. In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant. 2. For such in…

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 fed…

For the purposes of this chapter, the following definitions shall apply: 1. "Commissioner" means the insurance commissioner. 2. "Converted insurer" means a domestic mutual insurer that has completed a demutualization subject to this chapter. 3. "Converting insurer" means a domest…

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 t…

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. History: Effective February 1, 2000. General Authority: NDCC 26.1-12-32 Law…

A petition to engage in a demutualization pursuant to this chapter must be filed with the commissioner and must contain the following: 1. The proposed plan of conversion; 2. The proposed articles of incorporation and bylaws of the converted insurer; 3. A list of the proposed offi…

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; 3 2. Identification of the class or classes of persons who have an ownership int…

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. Hist…

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 Bis…

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 withi…

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-fi…

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 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. History: Effective February 1, 2000. General Authority: N…

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. History: Effective February 1, 2000. General Authority: NDCC 26.1-12-32 Law Implemented: NDCC…

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. History: Effective February 1, 2000. General Authority: NDCC 26.1-12-32 Law Impl…

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 t…

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 p…

As used in this chapter: 1. "Affiliate" means a person who directly, or indirectly through one or more intermediaries, controls, or is under the control of, or is under common control with, the person specified. 2. "Commissioner" means the North Dakota insurance commissioner. 3. …

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 contro…

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 p…