Title 4, Economic Resources

Stolen Goods; Seizure of Goods. (a) If a licensee has reasonable cause to believe that any property being pledged as security or already pledged as security is lost or stolen property, the licensee shall promptly report the matter to the Commissioner of Public Safety. (b) Where p…

Prohibited Acts and Practices. It is unlawful for a licensee or any employee thereof to: (a) Knowingly engage in a pawnbroker transaction with: (1) Any individual who is under the influence of drug or alcohol when such condition is visible or apparent; (2) Any individual under th…

Penalties. (a) Unless otherwise provided herein, a person who knowingly or willfully violates any provision of this article shall be guilty of a misdemeanor and be punishable by a term of imprisonment not to exceed one year, and a fine not to exceed $1,000. (b) When the lawful ow…

Distribution of Collected Fines and Penalties. Notwithstanding any law to the contrary, the Secretary of Finance shall deposit all fines and penalties collected under this article as follows: (a) Eighty percent shall be deposited into the General Fund, subject to appropriation. (…

Rule making. The secretary shall adopt rules and regulations necessary to implement the provisions of this article. Source: PL 11-65, § 4 (5630), modified.

Business License Application Task Force. There is hereby created within the government of the CNMI a Business License Application Task Force, consisting of one representative from each of the agencies or departments from which a license applicant needs approval or clearance in or…

Responsibilities and Authority of Task Force. The responsibilities and authority of the Task Force shall be to: (a) Prepare, through the expertise and analysis of the Task Force’s members, a comprehensive plan with the goal of providing a timely, responsive and responsible “One-S…

Cooperation of Government Agencies. All agencies, departments, boards, commissions and other instrumentalities of the government of the CNMI which are involved in the process of providing approvals or clearances for business licenses shall render such assistance to the Task Force…

License Required. (a) Before any person may operate an offshore bank in the Commonwealth, a written license issued by the director shall be obtained, except as specifically exempted by subsection (b) of this section. Knowing and willful violation of this section is punishable by …

Requirements for Issuance of License. The director shall promptly issue an offshore banking license when the applicant has met the following requirements: (a) It is duly incorporated under the laws of the Commonwealth and has filed with the director a certified copy of its articl…

Duty to Report Transfer. Upon any transfer of stock in an offshore bank which results in the ownership of more than 10 percent of the stock by a person for whom a report pursuant to 4 CMC § 6602(e) has not been done within the calendar year preceding the transfer, the offshore ba…

Reporting Requirements: Preservation of Confidences. (a) Each offshore bank shall submit to the director a report of its condition as of January 1 and June 1 of each year. The reports shall contain the names and addresses of the bank’s beneficial shareholders and such other infor…

Prohibited Act. An offshore bank shall not make loans, accept deposits, or borrow funds in any form from a resident of the Commonwealth. Source: PL 3-104, § 804.

Accounts to be Kept. An offshore bank shall record in the Commonwealth, for accounting purposes, all its loans, borrowings and business transactions, in the English language. Source: PL 3-104, § 805.

Definitions. [Reserved] [Reserved. See Commission Comment.] Source: PL 18-34 § 2 (Feb. 14, 2014). Commission Comment: PL 18-34 (effective Feb. 14, 2014) created a new Chapter 6 of Title 4, Division 7 of the Commonwealth Code. Section 2 of PL 18-34 contained an index of new sectio…

Purpose, Intent of Chapter. The purpose of this chapter is to promote the public welfare by regulating health insurance rates to the end that they shall not be excessive, inadequate or unfairly discriminatory, to authorize cooperation between insurers in rate making and other rel…

Application of Chapter. This chapter applies to all forms of insurance on risks or operations in the Commonwealth, including health insurance, except: (a) Reinsurance, as defined in 4 CMC § 7507, other than joint reinsurance to the extent stated in 4 CMC § 7626; (b) Insurance aga…

Remedies of Commissioner for Violations of Chapter. (a) If the Commissioner has reason to believe that a rate, rating plan, or rating system filed or used by a health insurance issuer or filed by a rating or advisory organization on behalf of an insurer does not comply with the r…

Filing Rates, Plans with Commissioner; Prior Approval by Commissioner; Public Inspection of Rate Filings. (a) Every insurer shall file with the Commissioner copies of the rates, rating plans, and rating systems used by it. All premium rates for tariff lines of insurance including…

Hearings on Rate Filings Pursuant to 4 CMC § 7605; Order; Review. (a) The Commissioner may hold a hearing on a filing made pursuant to 4 CMC § 7605 if the Commissioner determines that such a hearing would aid the Commissioner in determining whether to approve or disapprove the fi…

Effect of Noncompliance with Rating Regulation. If the Commissioner has reason to believe that noncompliance by an insurer with the requirements and standards of this chapter to be willful, or if within the period prescribed by the Commissioner in the notice required by 4 CMC § 7…

Records Requirements; Inspection; Statistics. (a) Each insurer, rating organization or advisory organization shall maintain reasonable records, of the type and kind reasonably adapted to its method of operation, of its experience or the experience of its members and of the data, …

Data Must Include Certain Information. The data collected and maintained by each insurer, rating organization or advisory organization pursuant to 4 CMC § 7610 shall be in sufficient detail to demonstrate the statistical significance of differences or correlations relevant to the…

Examining Rating Systems of Insurers; Costs. (a) The Commissioner may make or cause to be made an examination of every insurer transacting any class of insurance to which the provisions of this division are applicable to ascertain whether such insurer and every rate and rating sy…

Collusive Ratings Prohibited; Liability for Damages. In the event any insurer shall in collusion with any other insurer conspire to fix, set, or adhere to insurance rates except as expressly sanctioned by the Insurance Code, such insurer shall be liable to any person damaged ther…

Authority for Cooperative Ratings and Systems. Subject to and in compliance with the provisions of this chapter authorizing insurers to be members or subscribers of rating or advisory organizations or to engage in joint underwriting or joint reinsurance, two or more insurers may …

Unauthorized Adherence to Rates, Rating Systems. Members and subscribers of rating or advisory organizations may use the rates, rating systems, underwriting rules or policy or bond forms of such organizations, either consistently or intermittently, but, except as provided in 4 CM…

Preparation of Rates, Rating Systems, and Other Administrative Matters by Insurers under Common Ownership. With respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, in…

Method of Rate Making; Factors Considered; Rules. The following standards shall apply to the making and use of rates: (a) Rates shall not be excessive, inadequate, or unfairly discriminatory. (b) As to all classes of insurance, other than workers’ compensation and title insurance…

Agreements among Insurers for Assignment of Risks; Rate Modifications. Agreements 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 such insurance but who are unable to…

Suspension or Modification of Filing Requirement; Rules; Excess Rates for Specific Risks. (a) Under such rules and regulations as the Commissioner, by written order, may suspend or modify the requirement of filing as to any class of insurance, or subdivision or combination thereo…

Contracts to Comply with Effective Filings; Exception. No insurer shall make or issue a policy except in accordance with the filings which are in effect for the insurer as provided in this chapter. Source: PL 18-34 § 5(7618) (Feb. 14, 2014), modified. Commission Comment: PL 18-34…

Disapproval of Filings by Commissioner; Noncompliance with Chapter. (a) If within the waiting period or the extension thereof, if any, as provided in 4 CMC § 7617(b), the Commissioner finds that a filing does not meet the requirements of this chapter, the Commissioner shall send …

Initiation of Proceedings by Aggrieved Persons to Determine Lawfulness of Filings; Hearing. (a) Any person aggrieved with respect to any filing that is in effect, other than the insurer or rating organization that made the filing, may make written application to the Commissioner …

Hearing and Order Procedure. Conduct of the hearing, issuance of orders pursuant thereto, and judicial review of orders shall be as provided in 1 CMC § 9101 et seq. Source: PL 18-34 § 5(7620) (Feb. 14, 2014), modified. Commission Comment: The Commission inserted a comma after the…

Application for License by Rating Organization. No rating organization shall conduct its operations in the Commonwealth without first filing with the Commissioner a written application for a license as a rating organization for such classes of insurance, or subdivision or class o…

Licensing Rating Organizations Generally; Rules; Revocation and Suspension; Fees. (a) If the Commissioner finds that the applicant represents a credible statistical base, is competent, trustworthy and otherwise qualified to act as a rating organization and that its constitution, …

Rating Organization to Accept Insurers as Subscribers; Rules of Organization to be Reasonable; Review of Applications for Subscribership and of Reasonableness of Rules. (a) Subject to rules and regulations which have been approved by the Commissioner as reasonable, each rating or…

Cooperative Activities among Rating Organizations and Insurers. (a) Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this chapter hereby is authorized, provided the filings resulting from such…

Regulation of Joint Underwriting and Joint Reinsurance. No group, association or other organization of insurers which engages in joint underwriting or joint reinsurance shall engage in any activity which is unfair, unreasonable or otherwise inconsistent with the provisions of thi…

Insured Entitled to Rate Information; Remedies of Aggrieved Persons. (a) Every rating organization and every insurer which makes its own rates, within a reasonable time after receiving written request therefor and upon payment of such reasonable charge as it may make, shall furni…

Advisory Organizations; Registration; Jurisdiction of Commissioner to Restrict Unfair Practices. (a) Every advisory organization shall file with the Commissioner: (1) A copy of its constitution, its articles of agreement or association or its certificate of incorporation and of i…

Filing of Health Insurance Premium Rates; Rules. (a) Every insurer shall file with the Commissioner all schedules and tables of premium rates for health insurance to be used on risks in the Commonwealth, and shall file any amendments to or corrections of such schedules and tables…

Public Comment on Proposed Rates for Health Insurance. (a) When an insurer files a schedule or table of premium rates for individual, portability, or small employer health insurance under 4 CMC § 7629, the Commissioner shall open a 30-day public comment period on the rate filing …

Rate Filing to Include Statement of Administrative Expenses; Rules. An insurer licensed by the Commissioner shall include in any rate filing under 4 CMC § 7629 with respect to individual and small group health insurance policies a statement of administrative expenses in the form …

Insurer Examinations. (a) The Commissioner shall examine every authorized insurer, including an audit of the financial affairs of such insurer, as often as the Commissioner determines an examination to be necessary but at least once each five years. An examination shall be conduc…