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. 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 revises regulations concerning unauthorized insurance transactions, prohibiting insurance producers from charging fees on personal lines accounts and requiring written disclosures for any fees charged. Additionally, it clarifies that inducements offered by insurance producers cannot be construed as rebates or discounts, while allowing certain promotional activities under specified conditions.

Moreover, the bill establishes a higher standard of care for insurance producers charging fees for risk management services and mandates written acceptance for fees related to agency-billed premiums. It allows property insurance policies to include mandatory binding arbitration provisions, provided the insured agrees in writing. The bill also introduces new sections addressing civil remedy actions against property insurers, requiring a named insured to establish a breach of contract before pursuing bad faith claims. It modifies provisions regarding risk retention groups and purchasing groups, ensuring compliance with state requirements and clarifying the responsibilities for premium tax payments. Additionally, the bill mandates a study by the insurance commissioner 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