# Title 26.1 — Insurance

## Chapter 26.1-01 — Insurance Commissioner

### § 26.1-01-01. Commissioner defined.

Unless the context or subject matter otherwise requires, in this title the word "commissioner"
means the insurance commissioner.
### § 26.1-01-02. Commissioner - Seal - Employment of deputy and assistants.

The commissioner shall have an official seal and shall keep an impression of the seal on file
in the office of the secretary of state. The commissioner shall employ a deputy and other
competent officials and clerks to discharge the duties assigned by the commissioner. When the
commissioner is absent temporarily from the office, the deputy commissioner may sign the
commissioner's name and perform any other statutory duties pertaining to the office.
### § 26.1-01-03. Duties of commissioner.

The commissioner shall:
1. See that all the laws of this state respecting insurance companies and benevolent
societies are executed faithfully.
2. Report in detail to the attorney general any violation of law relative to insurance
companies and their officers or agents.
3. File the articles of incorporation of all insurance companies organized or doing
business in this state, and on application furnish a certified copy thereof.
4. Furnish the insurance companies required to make reports to the commissioner and
the benevolent societies the necessary blank forms for required statements and
reports. The commissioner is not required to send blank forms to those insurance
companies which submit their reports on printed forms conforming to those furnished
by the commissioner.
5. Preserve in permanent form a full record of the commissioner's proceedings and a
concise statement of each company or agency visited or examined.
6. Furnish at the request of any person, upon the payment of the required fee, certified
copies of any record or paper in the commissioner's office, if the commissioner deems
it not prejudicial to the public interests to do so, and give such other certificates as may
be provided by law.
7. Submit a biennial report as prescribed by section 54-06-04 to the governor and the
secretary of state. In addition to the requirements of section 54-06-04, the report must
contain an abstract only of the reports of the various insurance companies doing
business in this state showing the condition of the companies.
8. Upon request, send a copy of the commissioner's annual report to the insurance
commissioner, or other similar officer, of every other state and to each company doing
business in this state.
9. Communicate, on request, to the insurance commissioner of any other state any facts
that by law it is the commissioner's duty to ascertain respecting companies of this state
doing business within that state.
10. Manage, control, and supervise the state fire marshal.
### § 26.1-01-03.1. Cease and desist authority - Hearing - Failure to appear.

The commissioner may issue an order to cease and desist and notice of opportunity for
hearing when it appears that any person is engaged in an act or practice which violates or may
lead to a violation of this title. Any party aggrieved by the commissioner's order may make
written application for a hearing on the order within thirty days of the date of the order. The
application for a hearing must briefly state the respects in which the applicant is aggrieved by
the order and the grounds for relief to be relied upon at the hearing. A hearing must be held not

later than ten days after an application for hearing is received unless a delay is requested by all
persons named in the order. The commissioner, within thirty days after the hearing, shall issue
an order vacating the cease and desist order or making the cease and desist order permanent,
as the facts require. The failure of any named person to appear at any proper hearing under this
section after receiving notice of the hearing will cause that person to be in default and the
allegations contained in the cease and desist order may be deemed to be true and may be used
against the person at the hearing. If no hearing is requested by written application, the
commissioner's order becomes permanent.
### § 26.1-01-03.2. Injunctive authority.

The commissioner may bring an action in the district court of Burleigh County to enjoin any
acts or practices which are prohibited under this title, upon not less than eight days' notice to the
defendants named in the action.
### § 26.1-01-03.3. Penalty for violation of title.

1. Unless otherwise provided by law, a person who violates this title is subject, after
hearing by the commissioner, to payment of an administrative monetary fine of up to
ten thousand dollars for each violation.
2. In addition to or in lieu of a monetary fine, the commissioner, after a hearing, may
require restitution in the amount of direct financial loss be made to any person directly
harmed by a violation of this title. The commissioner may not determine or adjudicate
whether an obligation is owed under a policy or contract of insurance, or require a
person to pay a claim or an amount claimed owed under a policy or contract of
insurance.
### § 26.1-01-04. Service of process upon commissioner - Procedure.

When a consent to service of any process, notice, order, or demand upon the commissioner
is provided under this title, the service is to be in duplicate. The commissioner immediately shall
forward one copy by registered mail to the person against whom the process, notice, order, or
demand is directed at that person's last reasonably ascertainable address and shall file the
other copy in the office of the commissioner. The commissioner shall keep a record of the date
and hour of service.
### § 26.1-01-05. Reporting and review of medical malpractice claims, settlements, and

judgments.
1. A health care provider or the insurer of a health care provider, if any, shall report all
claims, settlements of claims, or final judgments against the health care provider to the
commissioner. The report must be made in the manner prescribed by the
commissioner and must provide those facts the commissioner deems necessary to
gather adequate information regarding claims, settlements of claims, and final
judgments against health care providers. For the purposes of this section, a "health
care provider" includes any person, corporation, facility, or institution licensed by this
state to provide health care or professional services as a physician, hospital, dentist,
professional or practical nurse, physician's aide, optometrist, podiatrist, chiropractor,
physical therapist, or psychologist, or an officer, employee, or agent thereof acting in
the course and scope of employment.
2. The commissioner shall forward copies of all reports required by this section to the
appropriate board of professional registration, examination, or licensure. That board
shall review all reports which it receives and may take any necessary disciplinary
action against a health care provider when the action is appropriate, including censure,
imposition of probation, or suspension or revocation of the health care provider's
license. The board shall conduct the review as an administrative hearing in the manner
provided in chapter 28-32, including the giving of appropriate notice.

### § 26.1-01-06. Reporting of statistical data regarding legal malpractice claims,

settlements, and judgments.
Repealed by S.L. 2003, ch. 245, § 4.
### § 26.1-01-07. Fees chargeable by commissioner.

1. The commissioner shall charge and collect the following fees:
a. For filing articles of incorporation, or copies, or amendments thereof, fifty dollars.
b. For each original certificate of authority issued upon admittance and for each
annual renewal thereof, one hundred fifty dollars and for amendment to certificate
of authority, or certified copy thereof, one hundred dollars. For each annual
renewal for county mutuals, one hundred fifty dollars.
c. For issuing an annual reciprocal exchange license, the same fees as those
applicable to the issuance of a certificate of authority in subsection 2.
d. For filing an annual report of a fraternal benefit society, and issuing a license or
permit to the society, and for each renewal thereof, one hundred dollars.
e. For filing of articles of merger, or copies thereof, fifty dollars.
f. For filing an annual statement for a county mutual, fifty dollars. For filing an
annual statement for a life settlement provider, one hundred dollars. For filing an
annual statement, one hundred dollars.
g. For filing the abstract of the annual statement of any insurance company for
publication, fifty dollars.
h. For an official examination, the expenses of the examination at the rate adopted
by the department. The rates must be reasonably related to the direct and indirect
costs of the examination, including actual travel expenses, including hotel and
other living expenses, compensation of the examiner and other persons making
the examination, and necessary attendant administrative costs of the department
directly related to the examination and must be paid by the examined insurer
together with compensation upon presentation by the department to the insurer of
a detailed account of the charges and expenses after a detailed statement has
been filed by the examiner and approved by the department.
i. For issuing a certificate to a domestic insurance company showing a compliance
with the compulsory reserve provisions of this title and the maintenance of proper
security deposits and for any renewal of the certificate, twenty-five dollars.
j. For a written licensee's examination not administered by the office of the
commissioner under a contract with a testing service, the actual cost of the
examination, subject to approval of the commissioner, which must be paid to the
testing service.
k. For issuing a surplus lines insurance producer's or insurance consultant's license,
one hundred dollars. For each annual renewal of a surplus lines insurance
producer's or insurance consultant's license, twenty-five dollars.
l. For issuing an insurance producer's license, one hundred dollars.
m. For issuing a duplicate of any license or registration issued under this title, ten
dollars.
n. For each insurance company appointment and renewal of an appointment of an
insurance producer, twenty-five dollars.
o. For each company application for admission, five hundred dollars, except
applications for admission for county mutual, fraternal benefit, and surplus lines
companies must be one hundred dollars.
p. For issuing a license and each annual renewal of a license to an insurance
premium finance company, one hundred dollars.
q. For examining or investigating an insurance premium finance company, the
actual expense and per diem incurred; but the per diem charge may not exceed
fifty dollars.
r. For issuing and each annual renewal of a license to an advisory organization, fifty
dollars.

s. For filing an individual insurance producer licensing continuation, twenty-five
dollars.
t. For services provided by the state fire marshal.
u. For an initial application for multiple employer welfare arrangements, five hundred
dollars. For each annual renewal, one hundred dollars.
v. For an initial application for a life settlement provider, one hundred dollars. For
each annual renewal, twenty-five dollars.
w. For a life settlement broker application, an initial broker license fee of
one hundred dollars. For each annual renewal, twenty-five dollars.
x. For issuing an individual resident or nonresident public adjuster license,
one hundred dollars. For each biennial renewal, twenty-five dollars.
y. For issuing a business entity public adjuster license, one hundred dollars. For
each biennial renewal, twenty-five dollars.
z. For issuing a license or certificate for a life or health insurance administrator, two
hundred fifty dollars. For each annual renewal, one hundred dollars.
aa. For the initial application fee for a pharmacy benefit manager, an amount
determined by the commissioner, which may not exceed ten thousand dollars.
For each annual renewal, an amount to be determined by the commissioner,
which may not exceed ten thousand dollars.
2. Nonprofit health service corporations and health maintenance organizations are
subject to the same fees as any other insurance company. County mutual insurance
companies and benevolent societies are liable only for the fees mentioned in
subdivisions b, f, g, h, and n of subsection 1.
3. If an amount of a fee, penalty, or interest has been paid which was not due under this
section, a refund may be issued to the individual who made the erroneous payment.
The refund is allowed as a cash refund, at the discretion of the commissioner. The
individual who made the erroneous payment shall present a claim for refund to the
commissioner not later than two years after the due date of the fee for the period for
which the erroneous payment was made.
### § 26.1-01-07.1. Insurance regulatory trust fund established.

1. There is hereby created a trust fund designated "insurance regulatory trust fund". The
following amounts must be deposited in the insurance regulatory trust fund:
a. All sums received under section 18-13-03.
b. All sums received under section 26.1-01-07.
c. All sums received under section 26.1-01-07.2 from the insurance regulatory trust
fund investments.
d. All retaliatory fees imposed upon persons by the insurance department as
authorized by law.
e. All administrative penalties, fines, and fees collected by the commissioner from
any person subject to this title.
f. Any other amounts provided by legislative appropriation.
2. The moneys so received and deposited in the insurance regulatory trust fund are
reserved for use by the insurance department to defray the expenses of the
department in the discharge of its administrative and regulatory powers and duties as
prescribed by law subject to the applicable laws relating to the appropriations of state
funds and to the deposit and expenditure of state moneys. The insurance department
is responsible for the proper expenditure of these moneys as provided by law.
3. Except as otherwise provided by law, after the fiscal year has been closed and all
expenses relating to the fiscal year have been accounted for, the office of
management and budget shall transfer any fund balance remaining in the insurance
regulatory trust fund that exceeds one million dollars to the general fund.
### § 26.1-01-07.2. Insurance regulatory trust fund investment.

1. It is the responsibility of the insurance department, charged with the administration of
the insurance regulatory trust fund, to make such moneys available for investment as

fully as is consistent with the cash requirements of the fund and to authorize
investment of such moneys by the state investment board.
2. The insurance department shall monthly notify the state investment board of the
amount available for investment, and the moneys must be invested by the investing
authority according to the laws relating to state investments. Such notification must
include the name and number of the fund for which the investments are to be made
and the life of the investment if the principal sum is to be required for meeting
obligations.
3. All earnings derived from such investments must be paid into the insurance regulatory
trust fund.
### § 26.1-01-07.3. Cash flow financing.

In order to effectively meet the cyclical cash flow needs of the insurance regulatory trust
fund, the office of management and budget upon approval of the emergency commission is
hereby authorized to issue certificates in anticipation of revenue, notes, or bonds, to funds on
deposit in the state treasury. Any issue of such certificates, notes, or bonds must be approved
by the emergency commission and are to be used for cash flow financing only and not to offset
projected deficits in the insurance regulatory trust fund. The terms of any specific issue of such
certificates, notes, or bonds may not exceed one hundred eighty days from the date of issuance
whereupon the principal and interest on the certificates, notes, or bonds must be paid in full
from the insurance regulatory trust fund or from another issue of a similar nature. All principal
and interest on such issues made during a biennial period must be repaid in full at the close of
the biennial period from the insurance regulatory trust fund. When certificates, notes, or bonds
are issued for cash flow purposes to funds which otherwise would be invested, with the
investment income accruing to the fund, the certificate shall bear an investment rate of return
which must be agreed upon by the state investment board and must be at a level
commensurate with the yield to be reasonably expected by such fund if invested in alternate
securities.
### § 26.1-01-07.4. Group health care coverage - Cooperative agreement allowed.

The insurance commissioner shall adopt rules to enable groups to form a cooperative that
would allow those groups to purchase group health insurance coverage or to self-insure as one
entity.
### § 26.1-01-07.5. Fire district maps - Insurance applications to show fire district in which

property is located - Penalty.
Before December first of each year, the insurance commissioner shall publish maps of the
fire districts of the state for use by insurers under this section for the following calendar year.
The state firefighter's association and the state fire marshal shall assist the insurance
commissioner in preparing the maps. After December 31, 1993, no insurer may issue or renew
a policy for fire, allied lines, homeowner's multiple peril, farmowner's multiple peril, commercial
multiple peril, or crop hail insurance coverage for property in this state unless the application
identifies each fire district in which the insured property is located. The application must identify
the property and insured value of the property located within each fire district if the policy
provides coverage for property that is not all within a single district. For purposes of this section,
"fire district" means rural fire protection district, city, or area served by a certified rural fire
department. An insurer that is found by the commissioner to be in violation of this section is
subject to a penalty of one hundred dollars for each violation to be deposited in the fire
insurance tax distribution fund. The insurance commissioner may adopt rules necessary for
administration of this section, including rules governing preparation, charges for, and use of
maps under this section.

### § 26.1-01-07.6. Medicare provider-sponsored organizations.

The insurance commissioner shall adopt rules relating to provider-sponsored organizations
as defined in section 4001 of the Balanced Budget Act of 1997 [Pub. L. 105-33; 111 Stat. 312;
42 U.S.C. 1395 et seq.].
### § 26.1-01-08. Rulemaking - Administrative procedure - Appeal from commissioner's

decision.
Any rulemaking or any administrative proceeding conducted by the commissioner is subject
to chapter 28-32, and any order or decision of the commissioner, unless otherwise specifically
provided for by law, is subject to review or appeal in the manner provided by chapter 28-32.
### § 26.1-01-08.1. Electronic filings allowed.

1. Notwithstanding any other provision of this title, the commissioner may adopt rules that
allow either an applicant or a licensee to file documents electronically with the
commissioner or the commissioner's designee. The rules may contain procedures for
the electronic filing of the following:
a. Any document required as part of an application for a license under this title;
b. Any document required to be filed by an applicant or licensee to maintain the
license in good standing;
c. Any fee required under this title; and
d. Any other document required or permitted to be filed.
2. This section may not be interpreted to supersede any other provision of law that
requires the electronic filing of a document or to require an applicant or licensee to
make any other filing electronically. The commissioner or the commissioner's designee
may charge a processing fee for electronic filing. A fee charged for the processing of
an electronic filing is in addition to any other fee imposed for the filing. Processing fees
charged for an electronic filing are limited to the lesser of twenty dollars per transaction
or the actual cost of the electronic transaction charged by the designee processing the
filing. If the actual cost of processing an electronic filing exceeds twenty dollars per
transaction, the commissioner may adopt rules to increase an electronic processing
fee not to exceed the actual cost charged by the designee.
### § 26.1-01-09. Salary of commissioner.

The annual salary of the commissioner is one hundred thirty-nine thousand two hundred
fifty-six dollars through June 30, 2026, and one hundred forty-three thousand four hundred
thirty-four dollars thereafter.
### § 26.1-01-10. General penalty.

For a violation of any provision of this title, when no penalty is provided specifically, the
offender is guilty of an infraction.
### § 26.1-01-11. Prescription drug assistance.

The insurance commissioner shall create and implement a program to assist individuals of
low income to gain access to prescription medications through prescription drug assistance
programs offered by pharmaceutical manufacturers, including free discount and coverage
programs. The commissioner shall use available computer software programs that link an
eligible individual with the appropriate pharmaceutical company patient assistance program
relating to the individual's medically necessary drugs. The commissioner shall provide education
to individuals and providers to promote the program and to expand enrollment and access to
necessary medications for low-income individuals qualifying for the programs.
