This bill proposes the creation of a new chapter in Title 26.1 of the North Dakota Century Code, establishing the North Dakota insurance incentive program aimed at enhancing the availability and affordability of property insurance in the state. The program will provide grants to insurers, with the commissioner authorized to implement it through public-private partnerships. The bill also introduces the North Dakota insurance incentive fund, which will consist of funds transferred or appropriated for this purpose, and establishes a continuing appropriation for the insurance department to administer the program. The fund will allow for the transfer of any balance exceeding $20 million to the general fund after the biennium closes.

Additionally, the bill amends existing laws to include the insurance incentive fund in the list of funds that the board shall invest and modifies the allocation of excess funds from the insurance regulatory trust fund to now direct these funds to the insurance incentive fund instead of the general fund. The bill sets specific requirements for grant applications, including minimum capital requirements for insurers and stipulations for the allocation of funds, ensuring that grants are awarded to those with satisfactory prior experience in writing property insurance. Furthermore, it includes provisions for monitoring compliance and the return of unearned grant funds, as well as an exemption for certain insurance premium tax deposits to support the incentive fund during a specified biennium.

Statutes affected:
Adopted by the Senate Industry and Business Committee: 21-10-06, 26.1-01-07.1
FIRST ENGROSSMENT: 21-10-06, 26.1-01-07.1