1.3 License Maintenance and Continuing Education

Biennial Renewal and CE

North Dakota producer licenses run on a 2-year (biennial) cycle and renew through NIPR. You may not transact business while a license is lapsed, so completing CE and renewing on time is critical.

The 24-Hour CE Requirement

Every 2-year term you must complete 24 hours of continuing education, of which at least 3 hours must be ethics.

The 24-hour requirement applies across the major lines:

CE Carryover Rules

North Dakota permits limited carryover of excess hours, which trips up many candidates:

Worked Example: You complete 30 hours in the final 12 months of your period - 6 over the 24-hour minimum. You may carry up to those excess hours (subject to the 12-hour cap) into the next period as general credit. But you must still complete a fresh 3 ethics hours next period, because ethics never carries as ethics.

Common Trap: Answer choices that say "ethics hours carry forward as ethics" are WRONG. Each renewal period requires its own 3 ethics hours.

Product-Specific Training

Beyond the general 24 hours, certain product lines carry mandatory training before you may solicit them.

Exam Tip: The LTC pattern is 8 + 4 - eight hours once, then a four-hour refresher every renewal. The annuity training is a one-time 4-hour best-interest course tied to the NAIC Suitability in Annuity Transactions Model. Do not confuse the two.

What the Annuity Best-Interest Course Covers

The annuity training reflects North Dakota's adoption of the NAIC best-interest standard, which raised the old "suitability" bar. Under it, a producer recommending an annuity must act in the consumer's best interest by satisfying four obligations: a care obligation (know the consumer's financial situation and needs), a disclosure obligation (reveal role, compensation type, and material conflicts), a conflict-of-interest obligation (avoid placing the producer's interest ahead of the consumer's), and a documentation obligation (record the basis for the recommendation).

Lapse and Reinstatement

If a producer misses the renewal deadline, the license lapses and the producer must stop transacting business immediately. North Dakota allows a limited reinstatement window after expiration; reinstating within 12 months generally avoids re-fingerprinting and retesting, provided the license was not suspended or revoked. Beyond that window, the producer is treated as a new applicant - meaning a fresh exam and fingerprinting.

Renewal Process

1. Complete 24 CE hours (including 3 ethics) before the renewal deadline
2. Verify credits are posted to your CE transcript (approved providers report electronically)
3. Submit the renewal through NIPR and pay the renewal fee
4. Confirm the license shows active before continuing to write business

Check your transcript early - if a provider failed to report a course, you must resolve it before the deadline, not after.

Disciplinary Authority

The Commissioner may discipline a producer for violations of Title 26.1. Common grounds include:

• Fraudulent, coercive, or dishonest practices
• Misappropriation or commingling of premium funds
• Material misrepresentation to clients
• Failure to meet CE requirements
• A disqualifying criminal conviction
• Administrative action against the license in another state

Penalties

Administrative Due Process

1. Investigation of the complaint by the Department
2. Notice of the proposed action to the producer
3. Hearing if the producer requests one
4. Written decision by the Commissioner
5. Appeal available to district court

Exam Tip: North Dakota fines can reach $10,000 per violation, and multiple violations stack. Discipline follows due process - investigation, notice, hearing, decision, and a right of appeal.

Reporting Changes

Producers must promptly notify the Department of a change of address or name, an administrative action taken by another state, and any criminal charges or convictions. Report through NIPR or directly to the Department. Failure to report timely is itself grounds for discipline.

• Address: State Capitol, 5th Floor, Dept. 401, 600 E. Boulevard Ave., Bismarck, ND 58505-0320
• Phone: (701) 328-2440 or (800) 247-0560
• Website: insurance.nd.gov