The proposed bill 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. Key changes include the introduction of a new definition for "large commercial risk," which is based on total insured property values, annual gross revenue, and premium amounts. The bill also allows exceptions for unauthorized insurance transactions for large commercial risks and outlines conditions under which insurance producers may charge fees for their services. Significant deletions from current law include the removal of prohibitions on insurance producers charging fees for personal lines accounts and specific references to federal crop insurance policy holders.

Additionally, the bill establishes mandatory binding arbitration provisions for property insurance policies, requiring written acceptance from the insured and clear disclosures about waived rights. It sets a higher standard of care for insurance producers providing risk management services and allows them to charge fees for agency-billed premiums if disclosed in writing. The bill also clarifies regulations surrounding risk retention groups and purchasing groups, including new requirements for disclosure statements and premium taxation. Overall, the bill aims to modernize and clarify property insurance regulations and the practices of insurance producers in North Dakota, while empowering the commissioner to enforce these regulations and assess penalties for violations.

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