North Dakota Administrative Code

1. A stock offering by an insurance company subsidiary of a mutual insurance holding company, an intermediate holding company subsidiary of a mutual insurance holding company, or an insurance company subsidiary of an intermediate holding company subsidiary to a mutual insurance h…

The commissioner may hold a public hearing to consider an application for approval of a stock offering. Upon receipt of an application for approval of an offering that includes an initial stock offering, the commissioner may hold a public hearing at which all interested parties m…

Notwithstanding the provisions of section 45-03-22-05, stock offerings that are not initial stock offerings must be approved by the commissioner and must be made in accordance with the following: 1. If an insurance company subsidiary of a mutual insurance holding company, an inte…

The following practices are prohibited: 1. Borrowing funds by the mutual insurance holding company or its subsidiaries or affiliates from the mutual insurance holding company's subsidiary or affiliates to finance the purchase of a stock offering by the reorganized insurer. 2. Pay…

A director or officer of a mutual insurance holding company, its subsidiary, or affiliate who acquires directly or indirectly the beneficial ownership of any security issued by any member of the mutual insurance holding company system, within fifteen days following the transactio…

As used in this chapter, unless the context requires otherwise, the term: 1. "Agent" means a national bank, state bank, trust company, or broker-dealer which maintains an account in its name in a clearing corporation or which is a member of the federal reserve system and through …

1. An insurance company may provide, by written agreement with a custodian, for the custody of its securities with a custodian. The securities that are the subject of the agreement may be held by the custodian or its agent or in a clearing corporation. 2. The agreement must be in…

1. Nothing prevents an insurance company from depositing securities with another insurance company with which the depositing insurance company is affiliated, provided that the securities are deposited pursuant to a written agreement authorized by the board of directors of the dep…

Pursuant to North Dakota Century Code chapter 26.1-55, the commissioner may approve a transition plan and timeline temporarily waiving some or all of the requirements of chapter 26.1-55 to allow insurance companies to phase into compliance with chapter 26.1-55. History: Effective…

Companies failing to receive transition plan approval or failing to meet a timeline approved by the commissioner must comply with North Dakota Century Code chapter 26.1-55. History: Effective April 1, 2014. General Authority: NDCC 28-32-02 Law Implemented: NDCC 26.1-55

The commissioner may approve a transition plan temporarily waiving some or all of the requirements of North Dakota Century Code chapter 26.1-55 if: 1. The company demonstrates and the commissioner determines implementation of the requirements of chapter 26.1-55 will cause legitim…

This chapter is adopted pursuant to the authority granted by North Dakota Century Code chapter 26.1-10.3. History: Effective October 1, 2019. General Authority: NDCC 26.1-10.3 Law Implemented: NDCC 26.1-10.3

The purpose of this chapter is to set forth the procedures for filing and the required contents of the corporate governance annual disclosure, deemed necessary by the commissioner to carry out the provisions of North Dakota Century Code chapter 26.1-10.3. History: Effective Octob…

1. "Board" means an insurer's or insurance group's board of directors. 2. "Commissioner" means the North Dakota insurance commissioner. 3. "Insurance group" for the purpose of this chapter means those insurers and affiliates included within an insurance holding company system as …

1. An insurer, or the insurance group of which the insurer is a member, required to file a corporate governance annual disclosure pursuant to North Dakota Century Code chapter 26.1-10.3, no later than June first of each calendar year, shall submit to the commissioner a corporate …

1. The insurer or insurance group shall be as descriptive as possible in completing the corporate governance annual disclosure, with inclusion of attachments or example documents used in the governance process, since these may provide a means to demonstrate the strengths of their…

If any provision of this chapter, or the application of this chapter to any person or circumstance, is held invalid, the validity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that e…

This chapter is adopted pursuant to the authority granted by North Dakota Century Code chapter 26.1-31.2. History: Effective April 1, 2022. General Authority: NDCC 26.1-31.2-04 Law Implemented: NDCC 26.1-31.2-04

The purpose and intent of this chapter is to establish standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premiums, guaranteed nonlevel benefits and universal life insurance policies with secondary guarant…

This chapter shall apply to reinsurance treaties that cede liabilities pertaining to covered policies, as that term is defined in subsection 2 of section 45-03-26-05, issued by any life insurance company domiciled in this state. This chapter and North Dakota Century Code chapter …

This chapter does not apply to the situations described in subsections 1 through 6. 1. Reinsurance of: a. Policies that satisfy the criteria for exemption set forth in subsection 6 of section 45-04-12-04 or subsection 7 of section 45-04-12-04 and which are issued before the later…

1. "Actuarial method" means the methodology used to determine the required level of primary security, as described in section 45-03-26-06. 2. "Covered policies" means subject to the exemptions described in section 45-03-26-04, covered policies are those policies, other than grand…

1. The actuarial method to establish the required level of primary security for each reinsurance treaty subject to this chapter shall be VM-20, applied on a treaty-by-treaty basis, including all relevant definitions, from the valuation manual as then in effect, applied as follows…

Opportunity for remediation. 1. Subject to the exemptions described in section 45-03-26-04 and the provisions of subsection 2, credit for reinsurance shall be allowed with respect to ceded liabilities pertaining to covered policies pursuant to North Dakota Century Code sections 2…

If any provision of this chapter is held invalid, the remainder shall not be affected. History: Effective April 1, 2022. General Authority: NDCC 26.1-31.2-04 Law Implemented: NDCC 26.1-31.2

No insurer that has covered policies as to which this chapter applies as set forth in section 45-03-26-03 may take any action or series of actions, or enter into any transaction or arrangement or series of transactions or arrangements if the purpose of such action, transaction or…

1. The purpose of this chapter is to require insurers to deliver to purchasers of life insurance, information which will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs, improve the buyer's understanding of the basic feature…

1. Except as hereafter exempted, this chapter shall apply to any solicitation, negotiation, or procurement of life insurance occurring within this state. This chapter shall apply to any issuer of life insurance contracts including fraternal benefit societies. 2. Unless otherwise …

For the purposes of this chapter, the following definitions shall apply: 1. "Buyer's guide" means the current version of the national association of insurance commissioners life insurance buyer's guide or language approved by the insurance commissioner. 2. "Cash dividend" means t…

1. The insurer shall provide, to all prospective purchasers, a buyer's guide and a policy summary prior to accepting the applicant's initial premium or premium deposit, unless the policy for which application is made contains an unconditional refund provision of at least ten days…

1. Each insurer shall maintain at its home office or principal office a complete file containing one copy of each document authorized by the insurer for use pursuant to this chapter. The file shall contain one copy of each authorized form for a period of three years following the…

Failure of an insurer to provide or deliver a buyer's guide, or a policy summary as provided in section 45-04-01-04 shall constitute an omission which misrepresents the benefits, advantages, conditions, or terms of an insurance policy. History: Effective January 1, 1980. General …

This chapter shall apply to all solicitations of life insurance which commence on or after January 1, 1980. Amendments to subsections 1 and 7 of section 45-04-01-03 and the appendix are effective January 1, 1997. History: Effective January 1, 1980; amended effective January 1, 19…

This chapter is intended to ensure that illustrations do not mislead purchasers of life insurance and to make illustrations more understandable. As far as possible, insurers will eliminate the use of footnotes and caveats and define terms used in the illustration in language that…

For the purposes of this chapter: 1. "Actuarial standards board" means the board established by the American academy of actuaries to develop and promulgate standards of actuarial practice. 2. "Contract premium" means the gross premium that is required to be paid under a fixed pre…

1. Each insurer marketing policies to which this chapter is applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on January 1, 1997, the insurer shall identify in writing tho…

1. An illustration used in the sale of a life insurance policy must satisfy the applicable requirements of this chapter, be clearly labeled life insurance illustration, and contain the following basic information: a. Name of insurer; b. Name and business address of producer or in…

1. Format. A basic illustration must conform with the following requirements: a. The illustration must be labeled with the date on which it was prepared. b. Each page, including any explanatory notes or pages, must be numbered and show its relationship to the total number of page…

1. A supplemental illustration may be provided as long as: a. It is appended to, accompanied by, or preceded by a basic illustration that complies with this chapter; b. The nonguaranteed elements shown are not more favorable to the policy owner than the corresponding elements bas…

1. a. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this chapter, must be submi…

1. In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that must contain at least the following information: a. For universal life policies, the report must i…

1. The board of directors of each insurer shall appoint one or more illustration actuaries. 2. The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the actuarial standard of practice for compliance with the national…

This chapter applies to all life insurance policies or certificates sold on or after January 1, 1997. History: Effective January 1, 1997. General Authority: NDCC 28-32-02 Law Implemented: NDCC 26.1-33-02 12

This chapter is applicable to insurance companies, including any fraternal benefit society which operates on a legal reserve basis, delivering or issuing for delivery in this state variable contracts or policies, as defined in subsections 16 and 18 of section 45-04-02-02. General…

1. "Affiliate" of an insurer means any person, directly or indirectly, controlling, controlled by, or under common control with such insurer; any person who regularly furnishes investment advice to such insurer with respect to its variable life insurance separate accounts for whi…

1. No company shall deliver or issue for delivery variable annuity contracts within this state unless: a. It is licensed or organized to do a life insurance and annuity business in this state; b. The commissioner is satisfied that neither its condition nor its method of operation…

3 A domestic company issuing variable annuity contracts shall establish one or more separate accounts pursuant to North Dakota Century Code sections 26.1-33-13 and 26.1-34-11, subject to the following provisions: 1. Except as may be provided with respect to reserves for guarantee…

The filing requirements applicable to variable annuity contracts shall, to the extent appropriate, be those filing requirements otherwise applicable under existing laws and regulations of this state with respect to the filing of annuity contract forms, both individual and group. …

1. Any variable annuity contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the company in determining the dollar amount of such variable ben…

1. Any company issuing individual variable annuity contracts shall mail to the contract holder at least once in each contract year after the first at the contract holder's last address known to the company a statement or statements reporting the investments held in the separate a…