Key Takeaways
- The North Dakota Insurance Department regulates all insurance activities under North Dakota Century Code (NDCC) Title 26.1
- The Insurance Commissioner is elected by North Dakota voters for a 4-year term
- North Dakota uses a file-and-use system for most property and casualty insurance rates
- The Department handles licensing, rate review, market conduct examinations, and consumer complaints
- North Dakota toll-free consumer hotline: (800) 247-0560
North Dakota Insurance Department
The North Dakota Insurance Department (NDID) is the state agency responsible for regulating the Property & Casualty insurance industry in North Dakota. Located in Bismarck, the Department ensures fair insurance practices and protects North Dakota consumers.
The Insurance Commissioner
The North Dakota Insurance Commissioner is:
- Elected by North Dakota voters
- Serves a 4-year term
- May serve unlimited consecutive terms
- Responsible for enforcing North Dakota Century Code (NDCC) Title 26.1
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Exam Tip: North Dakota is one of only 11 states where the Insurance Commissioner is elected rather than appointed. This is an important distinction for the exam.
Commissioner Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer and company licenses |
| Rate Review | Review P&C insurance rate filings for compliance |
| Market Conduct | Examine insurer business practices and compliance |
| Enforcement | Investigate violations and prosecute offenders |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting NDCC Title 26.1 |
| Financial Examination | Monitor insurer financial solvency |
| Fraud Investigation | Investigate insurance fraud |
North Dakota Century Code Title 26.1
The NDCC Title 26.1 is North Dakota's comprehensive insurance code covering:
Key Chapters
| Chapter | Subject | Key Provisions |
|---|---|---|
| 26.1-02 | Commissioner Powers | Authority, duties, enforcement |
| 26.1-03 | Licensing | Producer licensing requirements |
| 26.1-04 | Unfair Practices | Prohibited acts, penalties |
| 26.1-25 | Property Insurance | Fire and allied lines |
| 26.1-30 | Casualty Insurance | Auto, liability, WC |
| 26.1-36 | Trade Practices | Unfair claims practices |
| 26.1-44 | Guaranty Association | Consumer protection fund |
Rate Regulation
North Dakota uses a file-and-use system for most P&C insurance:
How File-and-Use Works
- Filing: Insurers file rates with the Department
- Immediate Use: Rates can be used upon filing
- Review: Department reviews rates after implementation
- Disapproval: Commissioner can disapprove rates that are:
- Excessive (too high)
- Inadequate (too low to pay claims)
- Unfairly discriminatory
Rate Standards
Rates must be:
- Adequate - Sufficient to pay expected claims and expenses
- Not Excessive - Not unreasonably high
- Not Unfairly Discriminatory - Based on legitimate risk factors only
Exam Tip: Under file-and-use, insurers can implement rates immediately but remain subject to later disapproval if the Department finds them non-compliant.
Consumer Protection Division
The Department's Consumer Protection Division:
Services Provided
- Responds to consumer complaints
- Investigates potential violations
- Mediates disputes between consumers and insurers
- Provides educational resources
- Maintains complaint records against insurers
Consumer Complaint Process
- File Complaint - Consumer submits written complaint
- Department Review - Staff reviews for jurisdiction
- Investigation - Contact insurer for response
- Resolution - Mediate or take enforcement action
- Response - Notify consumer of outcome
Contact Information
| Method | Details |
|---|---|
| Phone | (701) 328-2440 |
| Toll-Free | (800) 247-0560 |
| Website | insurance.nd.gov |
| insurance@nd.gov | |
| Address | 600 E Boulevard Ave, Bismarck, ND 58505 |
Market Conduct Examinations
The Department conducts market conduct exams to ensure insurers:
- Handle claims fairly and promptly
- Use approved rates and forms
- Follow underwriting guidelines
- Treat consumers properly
- Comply with all regulations
Examination Process
| Phase | Activities |
|---|---|
| Planning | Select company, define scope |
| Fieldwork | Review files, interview staff |
| Analysis | Identify violations, patterns |
| Report | Document findings, recommendations |
| Corrective Action | Company must address findings |
Financial Regulation
The Department monitors insurer solvency through:
Financial Examinations
- Review annual financial statements
- Conduct on-site examinations every 3-5 years
- Monitor risk-based capital (RBC) ratios
- Participate in NAIC accreditation program
Early Warning System
The Department uses NAIC ratios to identify troubled insurers:
- Profitability ratios
- Liquidity ratios
- Reserve adequacy ratios
- Leverage ratios
Coordination with Other Entities
NAIC Participation
North Dakota participates in the National Association of Insurance Commissioners (NAIC):
- Uniform standards development
- Interstate compact administration
- Producer database maintenance
- Financial solvency coordination
Interstate Compact
North Dakota is a member of the Interstate Insurance Product Regulation Compact (IIPRC):
- Streamlined product approvals
- Uniform standards for life and annuity products
- Does not cover P&C products
Exam Tip: Know the Commissioner's powers, the file-and-use rate system, and the consumer complaint process. These are frequently tested topics on the North Dakota exam.
How is the North Dakota Insurance Commissioner selected?
What rate regulation system does North Dakota use for P&C insurance?
What is the toll-free consumer hotline for the North Dakota Insurance Department?