On May 1, 2025, ND LEG governor signed SB 2374, becomes effective Aug. 1, 2025.
On Apr. 29, ND LEG passed bill re unauthorized transactions, tax fees.
ND LEG passed Bill SB 2374 to address arbitration agreements, commercial risks, tax fees, exceptions to unauthorized insurance transactions, and surplus lines licensing.
Amends insurance provisions under the North Dakota century codeND INS 26.1.
Bill Provisions
Bill prohibits an insurance company from transacting insurance business in the State North Dakota without first having a certificate of authority from the commissioner.
Exceptions for transactions involving INS contracts covering large commercial risk provided industrial insured not relieved from taxation on independently procured INS.
Incorporates federal crop insurance as an exception to prohibition related to rebates.
Includes the circumstances for property insurance policy issued or delivered with mandatory binding arbitration provisions as well as written acceptance for the insured.
Does not apply to voluntary arbitration agreement entered after dispute has arisen.
Does not apply to large commercial risk, or commercial surplus line insurance policies.
A property insurance policy may be issued or delivered with a managed repair program provision offering premium incentives for managed repair program participation.
Insurer offering the repair program required to offer disclosures re premiums, vendors.
Reopened claim that provides property insurance, including by surplus lines insurer, for loss or damage barred unless claim notice given to insurer within 1 year after loss date
Administrative fee charged under subsection 2, is not considered a premium and not subject to premium tax, fee may be charged for certain reimbursements and disclosed
Legislative History
On Jan. 27, 2025, bill introduced in Senate; on Feb. 19, 2025, bill passed in Senate.
On Feb. 21, 2025, bill introduced in House; on Apr. 8, 2025, bill was passed in House.
On Apr. 21, 2025, bill concurred in Senate; on Apr. 24, 2024, bill concurred in House.
On Apr. 29, 2025, bill was delivered to the governor, and is pending governor action.
Effectiveness
Bills without specified effective dates are effective on Aug. 1, so effective Aug. 1, 2025
May 2025 ND LEG Governor Approval
On May 1, 2025, ND LEG governor signed SB 2374, becomes effective Aug. 1, 2025.
Regulators
ND LEG
Entity Types
Ins
Reference
Act, 5/1/2025; Bill SB2374, 4/29/2025; Citation: ND INS 26.1;
