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2005 Summary of New State Laws - North Dakota

(Preliminary List of 2005 Approved/Pending Legislation)

Issue

Bill #

Bill Description

CLUE

SB 2186

Restricts the use of claims history in personal insurance underwriting. LAW. Effective 8/1/05.

Farm Mutuals

HB 1501

Clarifies the territorial writing limitations of county mutual insurance companies. LAW.

Licensure

HB 1113

Establishes specific continuing education requirements for producers or consultants including 24 hours of approved coursework of which three hours must be devoted to ethics. LAW. Effective 8/1/05.

Licensure

HB 1213

Establishes that an unauthorized transaction of insurance is considered a Class C felony. LAW.

Licensure

HB 1176

May impact insurance agents who sell securities by addressing provisions pertinent to securities laws, including exemptions and exempt transactions, registration and sales securities and registration of broker dealers, agents, investment advisors. LAW.

Miscellaneous New Insurance Laws

(Articles of Incorporation)

SB 2088

Eliminates the requirement that the Attorney General review and approve insurance company articles of incorporation. LAW.

Motor Vehicle Insurance

(Miscellaneous New Motor Vehicle Provisions - No-Fault Provisions - Nonmoving Vehicle Accidents)

SB 2047

Among other things, addresses nonmoving vehicle accidents by requiring a moving vehicle to be involved and requiring a person to be in or on the vehicle unless a pedestrian is struck by a moving vehicle as well as billing practices. LAW.

(Auto Warranty Contracts)

SB 2096

Requires insurance coverage be maintained by auto dealers issuing auto warranties of any kind and that such coverage be written only by insurers properly licensed to conduct business in the state. LAW.

(Data Recorders)

SB 2200

Requires manufacturers of new vehicles to disclose the presence of event data recorders. Insurers may not require access to the information as a condition of insurability, nor use such information for rate assessment purposes. LAW.

(Traffic Safety - Child Safety Seats)

SB 2208

Provides a definition of child restraint system and specifies child age groups the require utilization of such devices. LAW.

Privacy

(Identity Theft)

HB 1500

Establishes a new state law relating to identify theft regarding notification and initiation of law enforcement investigation. LAW.

(Identity Theft)

SB 2251

Establishes new provisions pertinent to disclosure to consumers when a security breach has occurred involving a consumer's electronic personal information. LAW.

Standard Fire Policy - Terrorism Exclusions

SB 2094

Allows commercial insurers to exclude from fire insurance policies losses by fire caused by terrorism. LAW.

State Regulator Authority

SB 2093

Authorizes the insurance commissioner to waive required hearings concerning consolidation, reinsurance, merger, or other acquisition of control of a domestic insurer if the companies involved and all the policyholders of the domestic companies involved consent to waiving the hearing. LAW.

State VS. Federal Regulation

HCR 3059

Urges Congress to oppose federal legislation that would impair or otherwise limit the ability of state government to regulate the insurance industry.

Surplus Lines

HB 1112

Clarifies that surplus lines producers may accept business only from licensed producers for nonadmitted carriers. LAW. Effective 8/1/05.

Telephone Sales

SB 2249

Amends provisions governing telephone solicitations. LAW. Effective 8/1/05.

Tort Reform

(Statute of Limitations - Real Estate Transactions)

HB 1188

Establishes a three-year statute of limitations on all real estate-related breach of duty actions. LAW.

(Common Sense Consumption)

HB 1241

Limits liability for claims related to weight gain or obesity. LAW.

(Expert Witnesses)

SB 2199

Provides that any professional negligence case initiated against certain health care providers must contain a statement from an expert witness supporting such claim. LAW.

(Post-Judgment Interest)

SB 2302

Amends provisions governing the calculation of post-judgment interest. Beginning 1/1/06, such interest will be based on the existing prime rate plus 3%. LAW.

Workers' Compensation

(Benefits, Claims and Authorized Treatments)

HB 1171

Amends provisions pertaining to total disability and rehabilitation services. LAW. Effective 8/1/05.

(Third-Party Liens)

HB 1122

Establishes a lien in favor of the Workforce Safety and Insurance Organization when an injury or death for which compensation is payable under provisions of the workers' compensation law was sustained under circumstances creating a legal liability in a third party. LAW. Effective 8/1/05.

(Omnibus Workers' Compensation Law Changes)

HB 1123

Amends provisions pertaining to premium payment, coverage requirements for foreign employers, and independent contractor certification. LAW. Effective 8/1/05.

(Omnibus Workers' Compensation Law Changes)

HB 1125

Amends laws governing premiums and payment of certain medical benefit claims. LAW. Effective 8/1/05.

(Tax Levies)

HB 1182

Allows certain political subdivisions to use all or part of the property tax levy and the insurance reserve fund for payment of Workforce Safety and Insurance contributions, premiums, judgments, and claims of political subdivisions. LAW.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.

North Dakota State Resource Center