25.8128.01000
Sixty-ninth
Legislative Assembly HOUSE BILL NO. 1087
of North Dakota
Introduced by
Industry, Business and Labor Committee
(At the request of the Insurance Commissioner)
1 A BILL for an Act to amend and reenact sections 26.1-27-03 and 26.1-27.1-02 of the North
2 Dakota Century Code, relating to licensing for administrators of life and health insurance and
3 pharmacy benefit managers.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. AMENDMENT. Section 26.1-27-03 of the North Dakota Century Code is
6 amended and reenacted as follows:
7 26.1-27-03. Certificate of authorityLicense required - Penalty.
8 1. A person, including a person who directly or indirectly underwrites, collects charges or
9 premiums from, or adjusts or settles claims on residents of this state in connection
10 with life, annuity, or health coverage provided by a self-funded plan, may not act as or
11 hold oneself out to be an administrator in this state, for the kinds of business for which
12 the person is acting as an administrator, without a certificate of authoritylicense issued
13 by the commissioner. Any person violating this subsection is guilty of a class C felony.
14 2. All applications must be accompanied by a filing fee of one hundred dollars.
15 3. The commissioner shall issue a certificatelicense unless the commissioner after due
16 notice and hearing determines that the administrator is not competent, trustworthy,
17 financially responsible, or of good personal and business reputation, or has had a
18 previous application for an insurance license denied for cause within five years.
19 4. The administrator shall pay an annual renewal fee of fifty dollars to maintain the
20 certificatelicense.
21 5. After notice and hearing, the commissioner may revoke a certificatelicense or fine the
22 administrator not more than ten thousand dollars, or both, or the commissioner may
23 suspend a certificatelicense, or fine the administrator not more than five thousand
24 dollars, or both, upon finding that either the administrator violated section 26.1-27-05
Page No. 1 25.8128.01000
Sixty-ninth
Legislative Assembly
1 and subsection 4 of section 26.1-27-06 and also violated subsection 1, 2, or 3 of
2 section 26.1-27-06 or section 26.1-27-07, 26.1-27-08, 26.1-27-10, 26.1-27-11, or
3 26.1-27-12, or the administrator is not competent, trustworthy, financially responsible,
4 or of good personal and business reputation.
5 SECTION 2. AMENDMENT. Section 26.1-27.1-02 of the North Dakota Century Code is
6 amended and reenacted as follows:
7 26.1-27.1-02. Licensing.
8 A person may not perform or act as a pharmacy benefits manager in this state unless that
9 person holds a certificate of registrationlicense as an administrator under chapter 26.1-27.
Page No. 2 25.8128.01000
Statutes affected: PREFILED: 26.1-27-03, 26.1-27.1-02