The North Dakota Insurance Commissioner possesses broad authority to examine the financial condition of any insurer operating within the state, as outlined in North Dakota Century Code (NDCC) § 26.1-03-16. This examination can occur as often as deemed necessary, but must occur at least once every five years. The scope of the examination extends to all aspects of the insurer’s business, including assets, liabilities, management, and operations. The Commissioner can compel the production of documents, records, and testimony from the insurer’s officers, directors, and employees. Refusal to cooperate with an examination can result in penalties, including fines, suspension or revocation of the insurer’s license, and even legal action to compel compliance. The Commissioner’s examination reports are generally confidential, but may be made public in certain circumstances, such as when the Commissioner believes it is in the public interest or when legal proceedings are initiated. The purpose of these examinations is to ensure the solvency and financial stability of insurers, protecting policyholders and the public.

In North Dakota, an insurance producer acting as a consultant is subject to specific requirements beyond those of a typical producer. NDCC § 26.1-26-42 outlines that a consultant must hold a valid insurance producer license and possess specialized knowledge and expertise. They must enter into a written agreement with the client, disclosing all fees, commissions, and potential conflicts of interest. The consultant’s advice must be objective and based on the client’s best interests, not solely on the consultant’s financial gain. This differs significantly from a producer selling insurance products, who may be incentivized to recommend specific products based on commission structures. Consultants are held to a higher standard of care and can be held liable for negligence or breach of contract if their advice is detrimental to the client. Furthermore, North Dakota Administrative Code (NDAC) 45-02-05 provides further clarification on consultant responsibilities and required disclosures.

The North Dakota Unfair Trade Practices Act, specifically NDCC § 26.1-04, prohibits insurers from engaging in unfair methods of competition and unfair or deceptive acts or practices in the business of insurance. Examples of prohibited activities include misrepresenting the terms of an insurance policy, making false or misleading statements about the financial condition of an insurer, unfairly discriminating between individuals of the same class and risk, and failing to promptly and fairly settle claims. For instance, an insurer that consistently denies valid claims without reasonable investigation could be found in violation. Consequences for violating the Act can include cease and desist orders from the Insurance Commissioner, fines, suspension or revocation of the insurer’s license, and legal action by aggrieved parties seeking damages. The Act aims to protect consumers from deceptive and unfair practices within the insurance industry, ensuring fair competition and ethical conduct.

In North Dakota, consumers who have complaints against insurance companies can file a formal complaint with the North Dakota Insurance Department. The process typically involves submitting a written complaint detailing the issue, along with supporting documentation. The Insurance Department then investigates the complaint, contacting the insurer to obtain their perspective and relevant information. Insurers are required to respond to the Department’s inquiries in a timely and thorough manner. The Department may mediate the dispute between the consumer and the insurer, attempting to reach a resolution. If the Department finds that the insurer has violated any laws or regulations, it may take disciplinary action, such as issuing fines or requiring corrective action. Consumers have the right to appeal the Department’s decision if they are not satisfied with the outcome. NDCC § 26.1-03-11 outlines the Commissioner’s authority to investigate complaints and enforce insurance laws.

Insurance advertising in North Dakota is strictly regulated to ensure accuracy and prevent misleading information. NDAC 45-06-02 outlines specific requirements and restrictions. Prohibited statements include those that are false, deceptive, or misleading, as well as those that misrepresent the benefits, terms, or conditions of an insurance policy. Advertisements cannot make unfair comparisons to other insurers or policies, nor can they create the impression that the policy is something it is not. For example, an advertisement cannot claim that a policy provides “complete coverage” if it contains significant exclusions or limitations. Penalties for non-compliance can include cease and desist orders, fines, and suspension or revocation of the insurer’s license. The Insurance Commissioner has the authority to review and approve insurance advertisements to ensure compliance with these regulations.

The North Dakota Insurance Guaranty Association (NDIGA) is a statutory entity created to protect policyholders in the event of an insurer’s insolvency. NDCC § 26.1-16 outlines its purpose and function. The NDIGA provides coverage for certain types of insurance policies, including property and casualty insurance, but typically excludes life, health, and annuity policies. There are limitations on the amount of coverage provided, generally capped at a specified amount per claim. The NDIGA is funded by assessments on solvent insurance companies operating in North Dakota. These assessments are based on the insurers’ premiums written in the state. When an insurer becomes insolvent, the NDIGA steps in to pay covered claims, up to the statutory limits, preventing policyholders from suffering financial losses due to the insurer’s failure. The NDIGA plays a crucial role in maintaining the stability of the insurance market and protecting consumers.

Licensed insurance producers in North Dakota are required to complete Continuing Education (CE) courses to maintain their licenses. NDCC § 26.1-26-29 mandates that producers complete a specified number of CE hours every license period, typically two years. The exact number of hours and any specific course requirements are detailed in the North Dakota Administrative Code (NDAC) and by the North Dakota Insurance Department. Qualifying courses must be approved by the Department and cover relevant topics related to insurance laws, regulations, ethics, and product knowledge. Failure to meet the CE requirements can result in penalties, including suspension or revocation of the producer’s license. Producers are responsible for tracking their CE credits and ensuring that they are reported to the Department in a timely manner. The CE requirements are designed to ensure that insurance producers maintain a current understanding of the insurance industry and provide competent service to their clients.

The North Dakota Insurance Commissioner can issue a cease and desist order when they have reason to believe that any person is engaged, has engaged, or is about to engage in any unfair method of competition or any unfair or deceptive act or practice as defined in NDCC 26.1-04-03. This authority is granted under NDCC 26.1-04-06. Before issuing a cease and desist order, the Commissioner must follow due process requirements. This typically involves providing the person with a statement of charges and a notice of hearing. The hearing allows the person to present evidence and arguments to refute the charges. NDCC 26.1-04-06 outlines the procedure for these hearings. Penalties for violating a cease and desist order can be significant. NDCC 26.1-04-06 specifies that a person violating a cease and desist order, after it has become final, may be subject to a monetary penalty of up to $10,000 for each violation. The Commissioner can also seek an injunction in district court to enforce the order. Each day of continued violation may be considered a separate violation.

Appealing a decision made by the North Dakota Insurance Commissioner involves a specific process outlined in the North Dakota Century Code. Generally, a person aggrieved by an order or decision of the Commissioner may appeal to the district court. The timeframe for filing an appeal is typically within a specified period, often 30 days, from the date of the Commissioner’s order or decision. The specific timeframe is usually detailed in the statute or regulation governing the particular type of decision being appealed. The appeal is made to the district court of the county in which the person resides or has their principal place of business, or in Burleigh County. The standard of review applied by the court varies depending on the nature of the decision being appealed. Generally, the court will review the Commissioner’s decision to determine whether it is supported by substantial evidence and is not arbitrary, capricious, or an abuse of discretion. The court may also review questions of law de novo. Specific sections of NDCC Title 26.1, particularly those related to administrative procedures and judicial review, would govern the appeal process and standard of review.

North Dakota insurance regulations mandate specific record-keeping practices for insurance transactions. Insurers and producers must maintain records that accurately reflect all transactions, including policies issued, premiums collected, claims paid, and commissions earned. These records must be kept in a manner that allows the Insurance Department to readily access and examine them. The required retention period for insurance records varies depending on the type of record. Generally, records must be retained for at least three years from the date of the transaction or the expiration of the policy, whichever is later. Certain records, such as those related to claims, may need to be retained for a longer period due to potential legal or regulatory requirements. Failure to comply with record-keeping requirements can result in various penalties, including fines, suspension or revocation of licenses, and other administrative actions. The North Dakota Insurance Department has the authority to conduct audits and examinations of insurance companies and producers to ensure compliance with record-keeping regulations. Specific details regarding record-keeping requirements and penalties can be found in the North Dakota Administrative Code and Century Code, particularly those sections pertaining to insurance regulation and enforcement.

The North Dakota Insurance Department has a formal process for handling consumer complaints against insurance companies and producers. Consumers can file complaints with the Department, typically in writing, outlining the nature of their grievance and providing supporting documentation. The Insurance Department is responsible for investigating these complaints to determine whether there has been a violation of insurance laws or regulations. This may involve gathering information from both the consumer and the insurance company or producer, reviewing policy documents, and conducting interviews. The Department has the authority to request information and documents from insurers and producers as part of its investigation. If the Department finds that a violation has occurred, it may take disciplinary action against the insurance company or producer, such as issuing a warning, imposing a fine, suspending or revoking a license, or ordering restitution to the consumer. If a consumer is not satisfied with the outcome of the complaint process, they may have recourse to pursue other legal remedies, such as filing a lawsuit against the insurance company or producer. The consumer may also have the right to appeal the Department’s decision to a court of law. Relevant sections of the North Dakota Century Code (NDCC) Title 26.1, particularly those related to consumer protection and administrative procedures, govern the complaint process and available remedies.

Licensed insurance producers in North Dakota are required to complete continuing education (CE) to maintain their licenses. The specific requirements are outlined in the North Dakota Administrative Code. The minimum number of CE credit hours required varies depending on the type of license held. Generally, producers must complete a certain number of credit hours every license term, which is typically two years. A portion of these hours may need to be in specific subjects, such as ethics or flood insurance. Courses that qualify for CE credit must be approved by the North Dakota Insurance Department. These courses must cover topics related to insurance laws, regulations, products, and practices. The Department maintains a list of approved CE providers and courses. Failure to meet the CE requirements can result in disciplinary action, such as suspension or revocation of the producer’s license. Producers who fail to complete their CE requirements may also be required to pay a fine or complete additional CE hours. Specific details regarding CE requirements, approved courses, and penalties can be found in the North Dakota Administrative Code.

North Dakota law places restrictions on the use of credit information in underwriting and rating insurance policies to protect consumers. Insurers are generally permitted to use credit information as one factor among many in determining rates and eligibility for coverage, but they cannot base a decision solely on a consumer’s credit score. Specific restrictions may include prohibitions on using credit information to deny, cancel, or nonrenew a policy, or to increase rates, if the consumer has experienced certain adverse life events, such as job loss or divorce. Insurers may also be required to re-underwrite or re-rate a policy if the consumer’s credit score improves significantly. Insurers must provide certain disclosures to consumers when using credit information. This typically includes informing the consumer that their credit score may be used in the underwriting or rating process, providing the consumer with the source of the credit information, and explaining how the credit score may affect their rates or eligibility for coverage. Consumers also have the right to dispute inaccurate credit information and to request that the insurer re-underwrite or re-rate their policy if the inaccurate information is corrected. North Dakota Century Code (NDCC) Title 26.1 contains provisions related to the use of credit information in insurance.

Advertising insurance products in North Dakota is subject to specific regulations designed to protect consumers from misleading or deceptive practices. Insurance advertisements must be truthful and accurate, and they cannot misrepresent the terms, benefits, or limitations of the insurance policy. Prohibited statements or representations in insurance advertisements may include false or misleading statements about the insurer’s financial condition, exaggerated claims about policy benefits, and incomplete or inaccurate comparisons to other insurance products. Advertisements also cannot create the impression that a policy is endorsed or approved by a government agency if that is not the case. To ensure that advertisements are not misleading or deceptive, insurers must include certain disclosures. This may include disclosing the policy’s limitations and exclusions, providing a clear and conspicuous explanation of key policy terms, and identifying the insurer or producer responsible for the advertisement. Advertisements for life insurance policies must also comply with specific disclosure requirements related to policy illustrations and cost indices. The North Dakota Administrative Code and Century Code contain detailed regulations regarding insurance advertising.