This bill proposes significant amendments and new provisions to the North Dakota Century Code, focusing on property insurance regulations. It introduces mandatory arbitration endorsements in property insurance policies, managed repair programs with premium incentives, and civil remedy actions against property insurers. A key aspect of the bill is the establishment of a new definition for "large commercial risk," which includes entities with substantial property values and revenues, while explicitly excluding farming or ranching operations. The bill also repeals a previous exemption for licensed surplus line producers from search requirements and prohibits certain rebates and inducements in insurance transactions, allowing exceptions for promotional items of defined value.

Additionally, the bill enhances consumer protection by setting a higher standard of care for insurance producers charging fees for risk management services and requiring written disclosures for agency-billed premiums. It outlines specific timeframes for reporting reopened and supplemental claims, with exceptions for service members in combat zones, and mandates that a named insured must establish a breach of contract before pursuing bad faith claims. The bill also addresses regulations for risk retention groups and purchasing groups, ensuring compliance with state requirements and imposing premium taxes at the same rate as other insureds. Lastly, it mandates a study by the insurance commissioner on the feasibility of providing towing and recovery coverage for vehicles with liability-only insurance, with findings 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