Title 26.1, Insurance

1. There is created in the state treasury the state fire and tornado fund to insure state agencies, political subdivisions, and winter shows against direct and indirect losses under this chapter. The fund consists of all assessments, interest, investment earnings, and other incom…

The office shall provide, upon request of an entity insured under the fund, coverage for an indirect loss arising out of a peril insured against by the fund. The coverage provided by the fund must be an amount that is subject to the underwriting guidelines developed by the office…

The North Dakota insurance reserve fund may use the services of producers licensed under this title to assist policyholders. Any commission paid to a producer under this section must be paid out of the assessment income of the fund and must be assessed against the policyholders t…

Investment of the fund is under the supervision of the state investment board in accordance with chapter 21-10.

1. In each odd-numbered year, or upon application for insurance, every state agency, political subdivision, and winter show insured under the fund shall report to the office the insurable value of each building, excluding buildings insured by private insurance companies, and the …

1. Upon application, the office shall provide for insurance against loss by fire, lightning, inherent explosion, windstorm, cyclone, tornado and hail, explosions, riot attending a strike, aircraft, smoke, vehicles, or may insure any other risks of direct physical loss, subject to…

1. If the office and the state agency, political subdivision, or winter show having custody of any property disagree about the insurable value of the property or the amount of loss insured, the office and the state agency, political subdivision, or winter show may agree to have t…

1. Upon providing insurance coverage under this chapter, the office shall certify to the insured the amount of the assessment. The state agency, political subdivision, or winter show shall submit to the office the payment of the assessment within sixty days after the date of the …

If the office finds any risk is unreasonably hazardous, the office may require the state agency, political subdivision, or winter show having control of the risk to mitigate or remove the extra hazard. If the state agency, political subdivision, or winter show fails to mitigate o…

1. All losses by the perils insured against under this chapter must be paid out of the fund in an amount not exceeding the amount of the insurance upon any particular risk. The loss upon any building or property insured in the fund, whether totally destroyed or partially damaged …

1. The office shall procure and shall keep in force excess loss reinsurance naming the fund as the reinsured. The excess loss reinsurance must be in an amount and for a period determined by the office to be sufficient for the fund. The reinsurance contract must reimburse the fund…

The office may waive any right of the fund to recover for damage sustained by any structure as a result of fire or explosion caused by a contractor, its employees or agents, in the performance of a contract for the alteration of, or the construction of an addition to, a building …

An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against.

An acknowledgment in a policy of the receipt of premium is conclusive evidence of its payment so far as to make the policy binding, notwithstanding any stipulation in the policy that it is not binding until the premium actually is paid.

A person insured is entitled to a return of premium, including all policy fees in excess of two dollars, on any one policy, and all other sums of money paid in consideration of the insurance policy, as follows: 1. To the whole premium, fee, or other sums if no part of the insured…

In cases of overinsurance, the insured is entitled to a return of the premium as follows: 1. In overinsurance by several insurers, to a ratable return of premium proportioned to the amount by which the aggregate sum insured in all the policies exceeds the value of the thing at ri…

The holder of any insurance policy against loss or damage to property by fire or other casualty, notwithstanding any provision of the policy or contract to the contrary, may surrender the policy for cancellation at any time. Upon surrender, the company issuing the policy shall re…

If a peril insured against has existed and the insurer has been liable for any period, however short, the insured is not entitled to a return of premium so far as that particular risk is concerned unless the insurance was for a definite period of time, in which case the insured i…

An insurance policy may not be forfeited, suspended, or impaired, by virtue of any condition or provision of the policy, for nonpayment of any note or obligation taken for the premium, or any part of the premium, unless the insurer, not less than thirty days prior to the maturity…

It is unlawful for any insurance company, or any insurance producer therefor within this state, to take or procure to be taken upon the property to be insured, or upon any other property, a security agreement securing the payment of the premium due or to become due, including pol…

A promissory note taken in settlement of the first premium on any life, health, or accident insurance policy may not be sold or negotiated in any manner prior to the applicant's medical examination, when one is required, nor a binding receipt for the premium signed by an authoriz…

An insurer providing commercial insurance may conduct an audit to determine the premium due or to be refunded only within one hundred eighty days after the expiration date of the policy unless the insured agrees in writing to extend that period of time.

The purpose of this chapter is to promote the public welfare by regulating insurance rates so that they are not excessive, inadequate, or unfairly discriminatory, and to authorize and regulate limited cooperative action among insurers in ratemaking-related activities and in other…

1. This chapter applies to fire, marine, inland marine, hail, windstorm, cyclone, tornado, explosion, water damage, and all other forms of insurance on property, and the loss of use and occupancy thereof, and to casualty insurance, including fidelity, surety, and guaranty bonds, …

1. "Advisory organization" means any entity, including its affiliates or subsidiaries, which either has two or more member insurers or is controlled either directly or indirectly by two or more insurers, and which assists insurers in ratemaking-related activities as enumerated in…

1. Rates must be made in accordance with the following provisions: a. Due consideration must be given to past and prospective loss experience within this state and outside this state to the extent that the consideration is given to areas the commissioner determines are representa…

1. Every insurer shall file with the commissioner, except as to inland marine risks which by general custom of the business are not written according to manual rates or rating plans, every manual, minimum class rate, rating schedule or rating plan, and every other rating rule, an…

All rate filings with the commissioner for motor vehicle liability and physical damage insurance must provide for an appropriate reduction in premium charges for the principal operators of motor vehicles for at least a two-year period following their successful completion of a mo…

Concerning motor vehicle accidents occurring after August 1, 1993: 1. An insurer may not assess an accident surcharge on the policy of any insured as a result of a comprehensive coverage claim or when the insured's unattended vehicle was legally parked when the damage occurred. 2…

Before, or at the time of issuance of a policy, an insurer insuring a motor vehicle must notify the insured in writing of the insurer's underwriting and rating procedures applicable to accident surcharges and loss of discounts.

An insurer must provide the commissioner notice in writing of its plan to cease writing and renewing a property and casualty insurance product before the notification of agents and policyholders. The notice must contain the effective date of the plan, the number of policies affec…

1. If within the waiting period or any extension thereof as provided in subsection 4 of section 26.1-25-04 the commissioner finds that a filing does not meet the requirements of this chapter, the commissioner shall send to the insurer or advisory organization which made the filin…

Every insurer which files rates shall, within a reasonable time after receiving written request therefor and upon payment of such reasonable charge as it may make, furnish to any insured affected by a rate made by it, or to the authorized representative of such insured, all perti…

1. No advisory organization may provide any service relating to the rates of any insurance subject to this chapter, and no insurer may utilize the services of such organization for such purposes unless the organization has obtained a license under subsection 3. 2. No advisory org…

1. No insurer or advisory organization may: a. Attempt to monopolize or combine or conspire with any other person to monopolize an insurance market. b. Engage in a boycott, on a concerted basis, of an insurance market. 2. a. No insurer may agree with any other insurer or with an …

Any advisory organization in addition to other activities not prohibited, is authorized, on behalf of its members and subscribers, to: 1. Develop statistical plans, including territorial and class definitions. 2. Collect statistical data from members, subscribers, or any other so…

Every advisory organization shall file with the commissioner for approval all prospective loss costs and all supplementary rating information and every change or amendment or modification of any of the foregoing proposed for use in this state. The filings are subject to the provi…

1. Notwithstanding subdivision a of subsection 2 of section 26.1-25-10.2, insurers participating in joint underwriting, joint reinsurance pools, or residual market mechanisms may in connection with such activity act in cooperation with each other in the making of rates, rating sy…

The commissioner may, as often as the commissioner deems expedient, make or cause to be made an examination of each advisory organization referred to in section 26.1-25-10.1 and of each group, association, or other organization referred to in section 26.1-25-10.5. The reasonable …

1. The commissioner shall adopt reasonable rules and statistical plans, reasonably adopted to each of the rating systems on file with the commissioner, which may be modified from time to time and which must be used thereafter by each insurer in the recording and reporting of its …

No person or organization may willfully withhold information from, or knowingly give false or misleading information to, the commissioner, any statistical agency designated by the commissioner, any advisory organization, or any insurer, which will affect the rates or premiums cha…

1. An agreement may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods and the insurers may agree among…

1. An insurance producer may not knowingly charge, demand, or receive a premium for any insurance policy except in accordance with this chapter. No insurer or employee of an insurer, and no insurance producer, broker or agent may pay, allow, or give, or offer to pay, allow, or gi…

Any insurer or advisory organization aggrieved by any order or decision of the commissioner made without a hearing, within thirty days after notice of the order to the insurer or organization, may make written request to the commissioner for a hearing thereon. The commissioner sh…

Any person who violates this chapter shall be guilty of a class B misdemeanor. The commissioner may suspend the license of any advisory organization or insurer which fails to comply with the order of the commissioner with the time limited by the order or any extension thereof whi…

The commissioner may, by rule, exempt any market from any or all of the provisions of this chapter, if and to the extent that the exemption is necessary to achieve the purposes of this chapter.