19.0680.01000
Sixty-sixth
Legislative Assembly HOUSE BILL NO. 1140
of North Dakota
Introduced by
Representatives Keiser, Lefor
Senator Klein
1 A BILL for an Act to amend and reenact subsections 3 and 4 of section 26.1-39-11 and
2 subsections 4 and 5 of section 26.1-40-01 of the North Dakota Century Code, relating to the
3 renewal of an insurance policy with altered terms.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. AMENDMENT. Subsections 3 and 4 of section 26.1-39-11 of the North Dakota
6 Century Code are amended and reenacted as follows:
7 3. "Renewal" or "to renew" means the issuance and delivery by an insurer at the end of a
8 policy period of a policy superseding a policy previously issued and delivered by the
9 same insurer, or the issuance and delivery of a certificate or notice extending the term
10 of an existing policy beyond its policy period or term. The term includes a change or
11 alteration in the amount of a deductible, coverage, or exclusion which results in
12 substantially equivalent coverage if the altered terms are provided to the insured in the
13 notice of renewal.
14 4. "Termination" means cancellation or nonrenewal of property insurance coverage in
15 whole or in part. Cancellation occurs during the policy term. Nonrenewal occurs at the
16 end of the policy term as set forth in subsection 3. For purposes of sections
17 26.1-39-10 through 26.1-39-21, the transfer of a policy between companies within the
18 same insurance holding company system is not a termination. Requiring a reasonable
19 deductible, reasonable changes in the amount of insurance, or reasonable reductions
20 in policy limits or coverage is not considered a termination if the requirements are
21 directly related to the hazard involved and are made on theA renewal date for the
22 policywith altered terms as provided in subsection 3 is not a termination.
23 SECTION 2. AMENDMENT. Subsections 4 and 5 of section 26.1-40-01 of the North Dakota
24 Century Code are amended and reenacted as follows:
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 Sixty-sixth
Legislative Assembly
1 4. "Renewal" or "to renew" means:
2 a. The the issuance and delivery by an insurer of a policy replacing, at the end of
3 the previous policy period, a policy previously issued and delivered by the same
4 insurer;
5 b. The the issuance and delivery of a certificate or notice extending the term of a
6 policy beyond its policy period or term; or
7 c. The the extension of the term of a policy beyond its policy period or term
8 pursuant to a provision for extending the policy by payment of a continuation premium.
9 The term includes a change or alteration in the amount of a deductible, coverage, or
10 exclusion which results in substantially equivalent coverage if the altered terms are
11 provided to the insured in the notice of renewal. Any policy with a policy period or term
12 of less than six months must be considered as if written for a policy period or term of
13 six months except in case of termination under any of the circumstances specified in
14 subsection 2 of section 26.1-40-05. Any policy written for a term longer than one year
15 or any policy with no fixed expiration date must be considered as if written for
16 successive policy periods or terms of one year and any termination by an insurer
17 effective on an anniversary date of the policy is deemed a failure to renew.
18 5. "Termination" means cancellation or nonrenewal of automobile insurance coverage in
19 whole or in part. Cancellation occurs during the policy term. Nonrenewal occurs at the
20 end of the policy term. An insurer's substitution of insurance upon renewal which
21 results in substantially equivalent coverage is not a termination. The transfer of a
22 policy between companies within the same insurance holding company system is not
23 a termination. A renewal with altered terms as provided in subsection 4 is not a
24 termination.
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