Title 26.1 — Insurance

A domestic insurer, upon the approval of the commissioner, may transfer its domicile to another state in which it is admitted to transact the business of insurance. Upon transfer, the insurer ceases to be a domestic insurer and, if qualified, may be admitted to this state as a fo…

The individuals associated for the purpose of organizing a stock insurance company under this chapter, after having filed the articles of incorporation as required by section 26.1-05-06, may open books for subscriptions to the capital stock of the company and keep the books open …

A person, in contravention of any rules the commissioner may adopt as necessary or appropriate in the public interest or for the protection of investors, may not solicit or permit the use of the person's name to solicit any proxy, consent, or authorization in respect of any equit…

"Equity security" as used in sections 26.1-05-11 through 26.1-05-15 means any stock or similar security; any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; any such warrant o…

Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurance company, or who is a director or an officer of the company, shall file in the office of the commissioner within ten days afte…

For the purpose of preventing the unfair use of information which may have been obtained by a beneficial owner, director, or officer by reason of the relationship to a domestic stock insurance company, any profit realized by that person from any purchase and sale, or any sale and…

A beneficial owner, director, or officer, directly or indirectly, may not sell any equity security of a domestic stock insurance company if the person selling the security or the person's principal does not own the security sold, or if owning the security, does not deliver it aga…

Sections 26.1-05-11 through 26.1-05-13 do not apply to equity securities of a domestic stock insurance company if the securities are registered, or are required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if the company does not…

The commissioner may adopt any rules necessary to administer sections 26.1-05-11 through 26.1-05-14. The commissioner may classify domestic stock insurance companies, securities, and other persons or matters within the commissioner's jurisdiction and define and prescribe terms an…

When the capital stock of an insurance company is impaired, the company, upon a vote of a majority of the stock represented at a meeting legally called for that purpose, may reduce its capital stock, and the number of shares thereof, to an amount not less than the minimum require…

A transfer of the stock of any domestic insurance company made during the pendency of any examination does not release the party making the transfer from the party's liability for loss which may have occurred previous to the transfer. 26.1-05-18. Investment of funds must be autho…

A domestic insurance company may invest any of its funds and accumulations in: 1. Securities or obligations made specifically eligible for such investment by law. 2. Bonds or other evidences of indebtedness issued, assumed, or guaranteed by the United States, the District of Colu…

The purchase and sale of put options or call options or financial futures contracts are subject to this section. 1. As used in this section: a. "Call option" means an exchange-traded option contract under which the holder has the right to buy, or to make a cash settlement in lieu…

A domestic insurance company may acquire, hold, and convey only the real property that has been: 1. Mortgaged to it in good faith by way of security for loans previously contracted or for moneys due to it. 2. Conveyed to it in satisfaction of debts previously contracted in the co…

All property acquired by a domestic insurance company in any manner specified in subsections 1, 2, and 3 of section 26.1-05-20 which is not necessary for the accommodation of the company or for the convenient transaction of its business must be sold and disposed of within two yea…

Any officer or director of a domestic insurance company who makes or authorizes an investment or loan in violation of section 26.1-05-19 or 26.1-05-20 is liable personally to the stockholders of a stock insurance company, or to the policyholders of a mutual insurance company, for…

A domestic life insurance company, at any time, may change the securities on physical deposit or designated on the statement of securities held by the company in lieu of a deposit by substituting a like amount of the character required in the first instance. If the annual valuati…

A domestic life insurance company having bonds or other securities on deposit with the commissioner may collect the dividends or interest thereon upon delivering to its authorized agent the coupons or other evidence of interest as the same becomes due. If any company, however, fa…

As used in this section, "reciprocal state" means a state the laws of which prohibit an insurance company domiciled therein from insuring the lives or persons of residents of, or property or operations located in, the state of North Dakota unless it holds a valid and subsisting c…

As used in this chapter, unless the context or subject matter otherwise requires: 1. "Equity security" means any shares or similar securities, or voting trust certificates, or any securities convertible into such securities. 2. "Horizontal combination" means two or more corporati…

1. No offeror may make a takeover bid unless at least twenty days prior thereto the offeror files with the commissioner and the target company copies of all information required by subsection 2 and either within ten days following the filing no hearing is ordered by the commissio…

No offeror may make a takeover bid not made to all resident holders of the equity security that is the subject of the takeover bid, or not made to the holders on the same terms as the takeover bid is made to nonresident holders of the equity security. If an offeror makes a tender…

It is unlawful for any person to misstate any material fact or omit to state any material fact, necessary to make the statements made, in the light of the circumstances under which they are made, not misleading, or to engage in any fraudulent, deceptive, or manipulative acts or p…

Any hearing pursuant to this chapter must be held within forty days of the date a filing is made pursuant to section 26.1-06-02. Adjudications made pursuant to this chapter must be made within sixty days after the filing. Upon filing an application with the commissioner for a hea…

The commissioner, by order entered after a hearing on notice duly served on the defendant not less than thirty days before the date of the hearing, if it is proved that the defendant has knowingly made any misrepresentation of a material fact for the purpose of inducing the commi…

Each takeover bid made in violation of the provisions of this chapter constitutes a separate offense. The commissioner may request the offeror to rescind the bid and to make restitution to the offeree, and if the offeror complies with the request no penalty may be imposed on the …

1. Any offeror who makes a takeover bid which does not comply with this chapter, or makes a takeover bid by means of an untrue statement of a material fact or any omission to state a material fact necessary in order to make the statement made, in the light of the circumstances un…

Every nonresident offeror who makes a takeover bid is deemed to have appointed the commissioner as agent upon whom may be served, in any matter arising under this chapter, any process, notice, order, or demand except one issued by the commissioner. The commissioner or a designate…

If at a hearing before the commissioner, the commissioner determines that the offeror has violated this chapter, or the commissioner's rules administering this chapter, the commissioner shall issue and cause to be served on the offeror an order requiring the offeror to cease and …

The commissioner may adopt reasonable rules: 1. Defining fraudulent, evasive, deceptive, or grossly unfair practices in connection with takeover bids and the terms used in this chapter. 2. Exempting from this chapter takeover bids not made for the purpose of, and not having the e…

This chapter does not limit or modify any responsibility, authority, power, or jurisdiction provided in the securities laws of this state.

Any person who knowingly makes or causes to be made any false statement with respect to any matter subject to this chapter or commits any act declared unlawful by this chapter and any offeror who makes a takeover bid which does not comply with this section and sections 26.1-06-02…

As used in this chapter, "consolidate" includes consolidation and merger and "reinsurance" includes only those obligations ceded or assumed by an assumption agreement. An "assumption agreement" is one that transfers all of the direct insurer's obligations under policies of insura…

When any company described in section 26.1-07-01 proposes to consolidate with any other company, or to enter into any contract of reinsurance, it must file its petition with the commissioner setting forth the terms and conditions of the proposed consolidation or reinsurance contr…

An officer of a company petitioning for the right to consolidate or to reinsure and an officer or employee of the state may not receive any compensation or gratuity, either directly or indirectly, for aiding, promoting, or in any manner assisting in the consolidation or reinsuran…

When a petition is filed, the commissioner, within thirty days after filing of the petition, shall issue an order requiring notice by mail to each policyholder of the domestic company if any of its policyholders are being reinsured or it is proposing to consolidate with another c…

Repealed by S.L. 1995, ch. 280, § 5.

The commissioner shall hold a hearing on the petition and determine whether the consolidation or reinsurance will be allowed. The hearing must be conducted under chapter 28-32. Within sixty days of the close of the hearing, the commissioner shall enter findings of fact, conclusio…

All actual expenses and costs incident to proceedings under this chapter must be paid by the company filing the petition. An itemized statement of the expenses and costs must be filed with the commissioner with a certified copy of the decision of the commissioner.

Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-09. Grounds upon which commissioner may petition for dissolution of company - Representation by attorney general. Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-10. Petition for dissolution of company when officer refuses to give infor…

Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-12. Injunction against transaction of business - Procedure - Operation of company. Repealed by S.L. 1991, ch. 305, § 14.

Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-14. Court may order liquidation of company - Commissioner to direct liquidation - Procedure. Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-15. Commissioner may appoint special deputies and employ counsel in receivership proceedings - …

Repealed by S.L. 1991, ch. 305, § 14.

Repealed by S.L. 1991, ch. 305, § 14. 26.1-07-18. Powers and duties of commissioner and deputies in receivership proceedings - Assessments - Actions. Repealed by S.L. 1991, ch. 305, § 14.

Repealed by S.L. 1991, ch. 305, § 14.

Repealed by S.L. 1991, ch. 305, § 14.

Any officer, director, or stockholder of any company, or any officer or employee of the state, who violates, or consents to the violation of, this chapter is guilty of a class A misdemeanor.

Repealed by S.L. 2003, ch. 239, § 18. 26.1-08-02.1. Board of directors. (Repealed effective December 31, 2027) 1. The board consists of the commissioner; the state health officer; the director of the office of management and budget; one senator appointed by the majority leader of…

Repealed by S.L. 2003, ch. 239, § 18. 26.1-08-03.1. Operation of the association. (Repealed effective December 31, 2027) The association may: 1. Exercise the powers granted to insurance companies under the laws of this state. 2. Sue or be sued, including taking any legal actions …

Repealed by S.L. 2003, ch. 239, § 18.