North Dakota Administrative Code

For purposes of this chapter: 1. "Carrier" means a person or an entity that offers or provides a policy, contract, or certificate of insurance coverage in this state. "Carrier" includes an insurer, a health maintenance organization, a nonprofit service corporation, or any other p…

Group coverage of accident and health insurance benefits transferred from one carrier to another must guaranty transfer of coverage for all eligible persons covered under the existing group insurance program and the transfer of such coverage must be negotiated on the basis of all…

charges. 1. If a policy or contract or certificate subject to these rules provides for automatic discontinuance of the coverage after a premium or subscription charge has remained unpaid through the grace period allowed for such payment, the carrier is liable for valid claims for…

1. Any notice of discontinuance so given by the carrier must include a request to the group policyholder or other entity involved to notify employees covered under the policy or subscriber contract of the date as of which the group policy or contract will discontinue and to advis…

1. Every group policy or certificate or other contract subject to these rules hereafter issued, or under which the level of benefits is hereafter altered, modified, or amended, must provide a reasonable provision for extension of benefits in the event of total disability at the d…

another. 1. This section shall indicate the carrier responsible for liability in those instances in which one carrier's (succeeding carrier) contract replaces a plan of similar benefits of another (prior contract). 2. Liability of prior carrier. The prior carrier remains liable o…

Unless otherwise defined, or made inappropriate by context, all words used in this chapter have meanings given to them under North Dakota Century Code chapters 26.1-02, 26.1-26, and 26.1-44. History: Effective January 1, 1982. General Authority: NDCC 26.1-44-09 Law Implemented: N…

The insurance commissioner will not issue a resident surplus lines insurance producer's license until the applicant has met the requirements of North Dakota Century Code section 26.1-26-17, has completed and filed with the commissioner a completed application for a surplus lines …

The licensed surplus lines insurance producer seeking the placement of nonadmitted insurance must conduct a diligent search to ascertain whether the insurance, indemnity contract, or surety bond can be procured from a company authorized to do business in this state. The surplus l…

A presumption that a diligent search has been made and that the insurance producer was unable to procure the insurance, indemnity contract, or surety bond desired from a company authorized to do business in this state is created when the insurance, contract, or bond is written in…

The categories designated in Appendix I are not to be considered as the only lines of coverage in which unauthorized insurers may be used. Other categories of coverage not listed may be acceptable because of special underwriting considerations, i.e., losses, high exposure, etc. A…

Repealed effective July 1, 2012.

Repealed effective July 1, 2012.

Repealed effective July 1, 2012.

Repealed effective July 1, 2012. 2 APPENDIX I Categories of Acceptable Surplus Lines Coverage The following categories of surplus lines coverage are not the only lines which may be written in North Dakota. Other lines of coverage not on this list may be acceptable because of spec…

A document that describes the general purposes and current limitations of the North Dakota life and health insurance guaranty association as required by subsections 2 and 3 of section 26.1-38.1-16 of the North Dakota Century Code must be in the form and contain the language print…

An insurance company or an insurance agent may apply to engage in insurance activities in one or more of the following lines of insurance: 1. Life and annuity. 2. Accident and health. 3. Property. 4. Casualty. 5. Variable life and annuity. History: Effective January 1, 2000. Gene…

Each line of insurance is defined to include the following products: 1. Life and annuity includes: Annuity/institutional investment Equity/interest indexed annuity Credit life Equity/interest indexed universal life Deferred annuity Structured settlement annuity Endowment Term lif…

Certain insurance products may involve two or more lines of insurance. A company marketing a combination product must carry authorization for each of the respective lines of insurance. Products involving a combination of property and casualty lines of insurance include aircraft, …

An insurance company that markets prepaid legal services must be licensed as a prepaid legal service organization and comply with chapter 26.1-19 of the North Dakota Century Code before transacting business in this state. History: Effective January 1, 2000. General Authority: NDC…

This rule is adopted under North Dakota Century Code section 26.1-02-27. History: Effective December 1, 2001. General Authority: NDCC 28-32-02 Law Implemented: NDCC 26.1-02-27

1. Purpose. This chapter governs the treatment of nonpublic personal health information and nonpublic personal financial information about individuals by all licensees of the state insurance department. This chapter: 1 a. Requires a licensee to provide notice to individuals about…

The examples in this chapter and the sample clauses in appendix A are not exclusive. Compliance with an example or use of sample clause, to the extent applicable, constitutes compliance with this chapter. History: Effective December 1, 2001. General Authority: NDCC 28-32-02 Law I…

As used in this chapter, unless the context requires otherwise: 1. "Affiliate" means a company that controls, is controlled by, or is under common control with another company. 2. a. "Clear and conspicuous" means that a notice is reasonably understandable and designed to call att…

1. Initial notice requirement. A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to: a. Customer. An individual who becomes the licensee's customer, not later than when the licensee establishes a customer relations…

1. a. General rule. A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices not less than annually during the continuation of the customer relationship. Annually means at least once in any period of twelve c…

1. General rule. The initial, annual, and revised privacy notices that a licensee provides under sections 45-14-01-05, 45-14-01-06, and 45-14-01-09 shall include each of the following items of information, in addition to any other information the licensee wishes to provide, that …

1. a. Form of notice. If a licensee is required to provide notice under subsection 1 of section 45-14-01-11, it shall provide a clear and conspicuous notice to each of its consumers that accurately explains the right to authorize disclosures under that section. The notice shall s…

1. General rule. Except as otherwise authorized in this rule, a licensee shall not, directly or through an affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party other than as described in the initial notice that the licen…

1. How to provide notices. A licensee shall provide any notices that this rule requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically. 2. a. Examples of reasonable expectation of actual notice. A li…

third parties. 1. a. Conditions for disclosure. Except as otherwise authorized in this rule, a licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless: (1) The licensee has p…

1. a. Information the licensee receives under an exception. If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in section 45-14-01-15 or 45-14-01-16, the licensee's disclosure and use of that information i…

1. General prohibition on disclosure of account numbers. A licensee shall not, directly or through an affiliate, disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer's policy or transaction account to …

financial information for service providers and joint marketing. 1. General rule. a. The notice and authorization requirements in sections 45-14-01-08 and 45-14-01-11 do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to …

nonpublic personal financial information for processing and servicing transactions. 1. Exceptions for processing transactions at consumer's request. The requirements for initial notice in subdivision b of subsection 1 of section 45-14-01-05, for notice and authorization in sectio…

nonpublic personal financial information. 1. Exceptions to authorization requirements. The requirements for initial notice to consumers in subdivision b of subsection 1 of section 45-14-01-05, for notice and authorization in sections 45-14-01-08 and 45-14-01-11 and for initial no…

information. 1. A licensee shall not disclose nonpublic personal health information about a consumer or customer unless an authorization is obtained from the consumer or customer whose nonpublic personal health information is sought to be disclosed. 2. Nothing in this section sha…

1. A valid authorization to disclose nonpublic personal health information pursuant to sections 45-14-01-17 through 45-14-01-21 shall be in written or electronic form and shall contain all of the following: a. The identity of the consumer or customer who is the subject of the non…

A request for authorization and an authorization form may be delivered to a consumer or a customer pursuant to section 45-14-01-10, provided that the request and the authorization form are clear and conspicuous. An authorization form is not required to be delivered to the consume…

Irrespective of whether a licensee is subject to the federal Health Insurance Portability and Accountability Act privacy rule as promulgated by the United States department of health and human services [45 CFR subtitle A, subchapter C, part 160] (the "federal rule"), if a license…

Nothing in this rule shall preempt or supersede existing state law related to medical records, health, or insurance information privacy. History: Effective December 1, 2001. General Authority: NDCC 28-32-02 Law Implemented: NDCC 26.1-02-27

Nothing in this rule shall be construed to modify, limit, or supersede the operation of the federal Fair Credit Reporting Act [15 U.S.C. 1681 et seq.], and no inference shall be drawn on the basis of the 27 provisions of this rule regarding whether information is transaction or e…

1. A licensee shall not unfairly discriminate against any consumer or customer because that consumer or customer has opted out from the disclosure of the person's nonpublic personal financial information pursuant to the provisions of this regulation. 2. A licensee shall not unfai…

If any section or portion of a section of this chapter or its applicability to any person or circumstance is held invalid by a court, the remainder of the rule or the applicability of the provision to other persons or circumstances shall not be affected. History: Effective Decemb…

This chapter shall become effective November 1, 2004. As of that date, nonpublic personal information, regardless as to when the information was collected by a licensee, may not be shared with a nonaffiliated third party except as authorized by the consumer or customer, or except…

As used in this chapter: 1. "Customer" means "customer" as defined in section 45-14-01-04. 2. "Customer information" means "nonpublic personal financial information", as defined in section 45-14-01-04, about a customer, whether in paper, electronic, or other form that is maintain…

Each licensee shall implement a comprehensive written information security program that includes administrative, technical, and physical safeguards for the protection of customer information that is appropriate to the size and complexity of the licensee and the nature and scope o…