The proposed legislation seeks to amend and enact various sections of the North Dakota Century Code related to property insurance, focusing on mandatory arbitration endorsements, managed repair programs, and civil remedy actions against property insurers. A significant change is the introduction of a new definition for "large commercial risk," which outlines specific criteria based on total insured property values, annual gross revenue, and premium amounts. The bill also creates exceptions for unauthorized insurance transactions, allowing lawful contracts for large commercial risks while ensuring that industrial insureds are still taxed on independently procured insurance. Additionally, it includes amendments that prohibit insurance producers from charging fees on personal lines accounts and mandates written disclosures for any fees charged for services.

Further, the legislation establishes a higher standard of care for insurance producers who charge fees for risk management services, requiring full disclosure to clients about their insurance needs and risks. It allows fees for agency-billed premiums paid electronically, provided they are disclosed in writing. The bill also introduces mandatory arbitration endorsements requiring written acceptance from the insured, outlines the rights waived for premium discounts, and sets conditions for managed repair programs. Moreover, it clarifies regulations for risk retention groups and purchasing groups, ensuring compliance with state requirements and emphasizing the need for policyholder disclosure statements. Lastly, the bill mandates a study on the feasibility of providing towing and recovery coverage for vehicles with liability-only insurance, with a report due by September 1, 2026.

Statutes affected:
INTRODUCED: 26.1-02-05, 26.1-10-01, 26.1-10-04, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3
Adopted by the Senate Industry and Business Committee: 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3
FIRST ENGROSSMENT: 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3
Adopted by the House Industry, Business and Labor Committee: 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3
Adopted by the Conference Committee: 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3
Enrollment: 26.1-02-05, 26.1-25-02.1, 26.1-25-16, 26.1-26-04.1, 26.1-44-03, 26.1-46-01, 26.1-46-08, 26.1-46-08.1, 26.1-44-03.3