Title 26.1 — Insurance

Repealed by S.L. 1987, ch. 357, § 2.

1. An individual of competent legal capacity may procure or effect an insurance contract upon that individual's own life or body for the benefit of any person. A person may not procure or cause to be procured an insurance contract upon the life or body of another individual unles…

A mere contingent or expectant interest in anything, not founded on an actual right to the thing nor upon any valid contract for it, is not insurable.

Any contingent or unknown event, whether past or future, which may damnify a person having an insurable interest or create a liability against the person may be insured against, subject to this title, with the exception of an insurance for or against the drawing of any lottery or…

A change of interest in any part of a thing insured, unaccompanied by a corresponding change of interest in the insurance, suspends the insurance to an equivalent extent until the interest in the thing insured and the interest in the insurance are vested in the same person, excep…

Each party to an insurance contract shall communicate to the other in good faith all facts within the party's knowledge which are or which the party believes to be material to the contract and which the other party has not the means of ascertaining and as to which the party makes…

"Concealment" means a neglect to communicate that which a party knows and ought to communicate.

A concealment, whether intentional or unintentional, entitles the injured party to rescind an insurance contract. An intentional and fraudulent omission on the part of one insured to communicate information of matters proving or tending to prove the falsity of a warranty entitles…

Neither party to an insurance contract is bound to communicate information of the matters following, except in answer to the inquiries of the other: 1. Those that the other knows. 2. Those that in the exercise of ordinary care the other ought to know and the former has no reason …

Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due in forming the party's estimate of the disadvantages of the proposed contract or in making the party's inquiries.

Each party to an insurance contract is bound to know all the general causes which are open to the party's inquiry equally with that of the other and which may affect either the political or material perils contemplated and all general usages of trade.

The right to information of material facts may be waived, either by the terms of insurance or by neglect to make inquiries as to such facts, when they distinctly are implied in other facts of which information is communicated.

Information of the nature or amount of the interest of one insured need not be communicated unless in answer to inquiry, except as required to prepare the policy as prescribed by section 26.1-30-01.

Neither party to an insurance contract is bound to communicate, even upon inquiry, information of the party's own judgment upon the matters in question.

A representation, either oral or written, may be made before or at the time of issuing the policy.

A representation is to be interpreted by the general rules of contract interpretation. A representation as to the future is a promise unless the representation appears that it was merely a statement of belief or expectation. A representation cannot qualify an express provision in…

A representation is false when the facts fail to correspond with its assertions or stipulations. If a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time when the representation become…

An oral or written misrepresentation made in the negotiation of an insurance contract or policy by the insured or in the insured's behalf is material or defeats or avoids the policy or prevents its attaching only if the misrepresentation has been made with actual intent to deceiv…

When a person insured has no personal knowledge of a fact, the person may repeat information which that person has upon the subject and which that person believes to be true with the explanation that that person does so on the information of others, or that person may submit the …

A representation must be presumed to refer to the time of the completion of the insurance contract.

A representation may be altered or withdrawn before the effective date of the insurance but not afterwards.

When a mortgagor of property effects insurance in the mortgagor's own name providing that the loss is payable to the mortgagee, or when the mortgagor assigns an insurance policy to the mortgagee, the insurance is considered to be upon the interest of the mortgagor. The mortgagor …

This chapter applies to a modification of an insurance contract as well as to its original formation. The right to rescind an insurance contract given to the insurer under the provisions of this title may be exercised at any time prior to the commencement of an action on the cont…

An insurance policy is the written insurance contract. It must specify: 1. The parties between whom the contract is made. 2. The rate of premium. 3. The property or life insured. 4. The interest of the insured in the property insured if the insured is not the absolute owner of th…

Every insurance policy executed by way of gaming or wagering is void.

An insurance policy is open, running, or valued, and these terms are defined as follows: 1. An open policy is one in which the value of the thing insured is not agreed upon but is left to be ascertained in case of loss. 2. A running policy is one which contemplates successive ins…

An insurance carrier or producer licensed to provide insurance under this title may provide insurance policies, endorsements, or riders in a language other than English. All policies, endorsements, and riders written in languages other than English must be filed pursuant to secti…

When the name of the person intended to be insured is specified in an insurance policy, it can be applied only to that person's own proper interest. Every stipulation in an insurance policy for the payment of loss regardless of whether the person insured has or has not any intere…

An insurance policy may be written so it will inure to the benefit of whomever, during the continuance of the risk, may become the owner of the interest insured.

When an insurance is made by an agent or trustee, the fact that the principal or beneficiary is the person actually insured may be indicated by designation of the agent or trustee or by other general words in the insurance policy.

When an insurance policy is entered into by a part owner of an interest, the terms of the insurance policy must be applicable to joint or common interest for the policy to be effective as to the interests of other part owners.

When the description of the insured in an insurance policy is so general that it may comprehend any person or any class of persons, the benefit of the policy may be claimed only by a person who can show that it was intended to include that person.

An agreement made before a loss occurs that the insured will not transfer any claim that might arise on the insurance policy is void.

A warranty is either express or implied. No particular form of words is necessary to create a warranty. It may relate to the past, present, or future, or to all of them.

Every express warranty made at or before the execution of an insurance policy must be contained in the policy or in another instrument signed by the insured and referred to in the policy as a part of the policy.

A statement in an insurance policy of a matter relating to the person or thing insured or to the risk as a fact is an express warranty thereof.

A statement in an insurance policy which imports that it is intended to do or not to do a thing which materially affects the risk is a warranty that the act or omission will take place.

When, before the time arrives for the performance of a warranty relating to the future, a loss insured against happens, or performance becomes impossible or unlawful at the place of the contract, the omission to fulfill the warranty does not avoid the insurance policy.

The violation of a material warranty or other material provision of an insurance policy on the part of either party to the policy entitles the other to rescind.

A breach of warranty without fraud exonerates an insurer from the time the breach occurs, or when a warranty is broken in its inception, prevents the insurance policy from attaching to the risk. 26.1-30-17. Breach of immaterial provision does not avoid policy unless otherwise pro…

An insurance policy covers the insured at 12:01 a.m. on the day on which coverage begins and expires at 12:01 a.m. on the day of expiration of the policy. However, a policy of insurance on growing crops against loss by hail takes effect at the time and on the day stated on the ap…

1. No insurance policy, contract, agreement, or rate schedule may be issued or delivered in this state until the form of that policy, contract, agreement, or rate schedule has been filed with and approved by the commissioner. 2. No life insurance policy, certificate, contract, or…

No insurance policy, certificate, contract, agreement, or rate schedule, except as is otherwise provided, may be issued, nor may any application, rider, or endorsement be used in connection therewith until the expiration of sixty days after it has been filed unless the commission…

1. If the commissioner disapproves any form, the commissioner shall notify the company or organization which filed the form within sixty days after filing or within the additional period provided for in section 26.1-30-20 and provide written notice of disapproval of the form, spe…

1. A property insurance policy may be issued or delivered in this state with a managed repair program provision offering premium incentives for managed repair program participation. As used in this section, "managed repair program" means an insurance policy providing a program wi…

A reinsurance contract is one by which an insurer contracts with a third person to insure the insurer against loss or liability by reason of an original insurance contract made by the insurer.

A reinsurance contract is presumed to be a contract of indemnity against liability and not merely against damage.

The original insured has no interest in a reinsurance contract.

When an insurer obtains reinsurance, the insurer shall communicate all the representations of the original insured and all the knowledge and information the insurer possesses, regardless of when acquired, which is material to the risk.

A double insurance exists when the same person is insured by several insurers separately in respect to the same interest.