Title 26.1 — Insurance

1. A pharmacy benefits manager shall offer to a covered entity options for the covered entity to contract for services that must include: a. A transaction fee without a sharing of a payment received by the pharmacy benefits manager; b. A combination of a transaction fee and a sha…

1. During an examination of a covered entity as provided for in chapter 26.1-03, 26.1-17, or 26.1-18.1, the commissioner shall examine any contract between the covered entity and a pharmacy benefits manager and any related record to determine if the payment received by the pharma…

The commissioner shall adopt rules as necessary to implement this chapter.

1. All powers granted to the commissioner under title 26.1 and chapter 28-32 are available in enforcing chapter 26.1-27.1, including subpoena power. 2. This section does not limit the attorney general from investigating and prosecuting violations of the law. 3. This section does …

1. A pharmacy benefits manager found to be in violation of this chapter or any rules adopted under this chapter is subject to: a. A monetary penalty of up to ten thousand dollars per violation; b. Suspension or revocation of license; and c. A civil penalty of up to fifty thousand…

The commissioner shall serve process upon any licensee in any action or proceeding instituted by the commissioner under this chapter by electronic mail to the electronic mail address maintained in section 26.1-27.1-02 or by United States mail to the licensee at the licensee's las…

This chapter applies to policies primarily insuring risks arising from the conduct of a commercial or industrial enterprise except workforce safety and insurance policies, private passenger automobile policies, inland marine policies, excess umbrella liability policies, errors an…

The declination or termination of a commercial insurance policy subject to sections 26.1-30.1-01 through 26.1-30.1-08 by an insurer or insurance producer is prohibited if the declination or termination is based solely upon any of the following reasons: 1. The race, religion, nati…

1. A policy transferred to an insurer within the same insurance holding company system is not subject to sections 26.1-30.1-02, 26.1-30.1-03, 26.1-30.1-03.1, and 26.1-30.1-06. 2. The transferring insurer shall give notice to the policyholder of the policy transfer.

No insurer may cancel a policy of commercial insurance during the term of the policy, except for one or more of the following reasons: 1. Nonpayment of premiums; 2. Misrepresentation or fraud made by or with the knowledge of the insured in obtaining the policy or in pursuing a cl…

Cancellation under subsections 2 through 9 of section 26.1-30.1-02 is not effective prior to thirty days after notice to the policyholder. The notice of cancellation must contain a specific reason for cancellation as provided in section 26.1-30.1-02. A policy may not be canceled …

Policies subject to this chapter may be canceled upon five days' written notice to the named insureds if one or more of the following conditions exist: 1. Buildings with at least sixty-five percent of the rental units in the building unoccupied. 2. Buildings that have been damage…

Sections 26.1-30.1-02 and 26.1-30.1-03 do not apply to insurance policies which have been in effect less than ninety days at the time the notice of cancellation is mailed or delivered. No cancellation under this section is effective until at least ten days after the written notic…

A policy may be issued for a term longer than one year or for an indefinite term with a clause providing for cancellation by the insurer for the reasons stated in section 26.1-30.1-02 by giving a notice as required by section 26.1-30.1-03 at least thirty days prior to any anniver…

1. Subject to subsection 2, if the insurer offers or purports to renew a policy at less favorable terms as to the dollar amount of coverage or deductibles or increases the rates in excess of fifteen percent, the new terms and new rates may take effect on the renewal date if the i…

1. A violation of any of the provisions of sections 26.1-30.1-01 through 26.1-30.1-07 must be deemed an unfair trade practice in the business of insurance and subject the violator to a penalty as determined by the commissioner not exceeding one thousand dollars for each and every…

As used in this chapter: 1. "Actuary" means a person who is a member in good standing of the American academy of actuaries. 2. "Controlling person" means any person, firm, association, corporation, or limited liability company who directly or indirectly has the power to direct or…

1. No person, firm, association, or corporation may act as a reinsurance intermediary-broker in this state if the reinsurance intermediary-broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a cor…

Transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity may only be entered into, pursuant to a written authorization, specifying the responsibilities of each party. The authorization must, at a minimum, contain provisions that: 1. Th…

1. For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker will keep a complete record for each transaction showing: a. The type of contract, limits, underwriting restrictions, …

Transactions between a reinsurance intermediary-manager and the reinsurer it represents in that capacity may only be entered into pursuant to a written contract, approved by the reinsurer's board of directors, which specifies the responsibilities of each party. At least thirty da…

The reinsurance intermediary-manager may not: 1. Bind retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsuranc…

1. A reinsurance intermediary is subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner. 2. A reinsurance intermediary-manager may be examined as …

1. If the commissioner determines that the reinsurance intermediary or any other person has not materially complied with this chapter, or any rule or order adopted under this chapter, after notice and opportunity to be heard, the commissioner may order: a. For each separate viola…

The commissioner may adopt reasonable rules for the implementation and administration of the provisions of this chapter.

No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary after July 7, 1991, unless utilization is in compliance with this chapter.

1. Credit for reinsurance must be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of subsection 2, 3, 4, 5, 6, 7, or 8. Credit will be allowed under subsection 2, 3, …

1. For purposes of subsection 3 of section 26.1-31.2-02, a "qualified United States financial institution" means an institution that: a. Is organized, or in case of a United States office of a foreign banking organization, is licensed, under the laws of the United States or any s…

The commissioner may adopt rules for the implementation and administration of this chapter.

Sections 26.1-31.2-01, 26.1-31.2-02, 26.1-31.2-03, and 26.1-31.2-04 apply to all cessions after July 7, 1991, under reinsurance agreements which have had an inception, anniversary, or renewal date not less than six months after July 7, 1991.

As used in this chapter, unless the context requires otherwise: 1. "Advertisement" means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio; television; the internet; or similar communications med…

1. A person, wherever located, may not act as a provider or broker with an owner or multiple owners who is a resident of this state without first having obtained a license from the commissioner. If there is more than one owner on a single policy and the owners are residents of di…

1. The commissioner may suspend, revoke, or refuse to renew the license of any licensee if the commissioner finds that: a. There was any material misrepresentation in the application for the license; b. The licensee or any officer, partner, member, or director has been guilty of …

1. A person may not use any form of life settlement contract in this state unless the contract has been filed with and approved, if required, by the commissioner in a manner that conforms with the filing procedures and any time restrictions or deeming provisions, if any, for life…

1. For any policy settled within five years of policy issuance, each provider shall file with the commissioner before March first of each year an annual statement containing such information as the commissioner may prescribe by regulation. In addition to any other requirements, t…

1. The commissioner, when the commissioner deems it reasonably necessary to protect the interests of the public, may examine the business and affairs of any licensee or applicant for a license. The commissioner may order any licensee or applicant to produce any records, books, fi…

1. A broker or provider licensed pursuant to this chapter may conduct or participate in advertisements within this state. Advertisements must comply with all advertising and marketing laws or rules adopted by the commissioner which are applicable to life insurers or to brokers an…

1. The provider shall provide in writing, in a separate document that is signed by the owner and provider, the following information to the owner no later than the date the life settlement contract is signed by all parties: a. The fact that possible alternatives to life settlemen…

Without limiting the ability of an insurer from assessing the insurability of a policy applicant and determining whether to issue the policy, and in addition to other questions an insurance carrier may lawfully pose to a life insurance applicant, insurance carriers may inquire in…

1. A provider entering a life settlement contract with any owner of a policy, wherein the insured is terminally or chronically ill, first shall obtain: a. If the owner is the insured, a written statement from a licensed attending physician that the owner is of sound mind and unde…

1. The commissioner may adopt rules implementing this chapter and regulating the activities and relationships of providers, brokers, and insurers and their agents. 2. The commissioner may establish standards for evaluating reasonableness of a payment under a life settlement contr…

1. It is unlawful for any person to: a. Enter a life settlement contract if such person knows or reasonably should have known that the life insurance policy was obtained by means of a false, deceptive, or misleading application for such policy; b. Engage in any transaction, pract…

1. a. A person may not commit a fraudulent life settlement act. b. A person may not knowingly and intentionally interfere with the enforcement of the provisions of this chapter or investigations of suspected or actual violations of this chapter. c. A person in the business of lif…

1. In addition to the penalties and other enforcement provisions of this chapter, if any person violates this chapter or any rule implementing this chapter, the commissioner may seek an injunction in a court of competent jurisdiction in the county where the person resides or has …

1. It is a violation of this chapter for any person, provider, broker, or any other party related to the business of life settlements to commit a fraudulent life settlement act. 2. For criminal liability purposes, a person that commits a fraudulent life settlement act is guilty o…

A violation of this chapter is considered an unfair trade practice pursuant to state law and subject to the penalties provided by state law.

A domestic or foreign corporation organized and operated exclusively as, or for the purpose of aiding, an educational, religious, charitable, scientific, or philanthropic institution and which is organized as a nonprofit organization without profit to any person, may apply to the…

The commissioner shall issue a certificate of exemption if: 1. All requirements of this chapter have been met; and 2. The commissioner is satisfied that the corporation is in a position to competently execute its responsibilities relative to such annuity contracts.

1. Every corporation possessing a certificate of exemption shall maintain a segregated account for all of its gift annuity liabilities. 2. The assets of the segregated account are not liable for any debts of the corporation other than those incurred pursuant to this chapter. 3. T…

Each charitable annuity contract or policy form used or issued by the corporation must include at least the following information: 1. The value of the property to be transferred; 2. The amount of the periodic annuity benefits to be paid; 3. The manner in which and the intervals a…