North Dakota Senate Bill SB2124

North Dakota 2025-2026 Regular Session

• Introduced: 1/7/25
• Refer: 1/7/25
• Report Pass: 1/15/25
• Engrossed: 1/20/25
• Refer: 2/13/25
• Report Pass: 3/13/25
• Enrolled: 4/4/25
• Passed: 4/8/25

Caption

Insurance company definitions and examination records.

Impact

The introduction of SB2124 is expected to significantly impact the way insurance companies operate within North Dakota law. By providing the commissioner with the authority to demand annual market conduct statements and to inquire into company operations, the bill strengthens the state's ability to monitor the insurance market effectively. The confidentiality provisions enact strict regulations regarding the handling of sensitive information, which could help prevent the misuse of data while still allowing the state to maintain oversight of the industry. As a result, this could lead to an increase in consumer trust in the insurance market.

Summary

Senate Bill 2124 aims to enhance the regulatory oversight of insurance companies in North Dakota. The bill introduces provisions for the Insurance Commissioner to issue 'data calls', which allow for inquiries into the operations and activities of both foreign and domestic insurers. It is designed to provide a structured method for the commissioner to gather necessary information, thereby ensuring compliance and market conduct among insurance companies operating within the state. This initiative reflects a growing emphasis on the need for thorough regulatory frameworks to protect consumers and promote fair competition among insurers.

Sentiment

Overall, the sentiment surrounding SB2124 appears to lean towards approval, particularly among legislators who wish to enhance consumer protections within the insurance industry. Proponents argue that increased oversight is essential for maintaining the integrity of the market and protecting policyholders. However, some concerns may arise regarding the potential burden placed on insurance companies to comply with these demands, particularly small insurers that may lack the resources to efficiently respond to data calls.

Contention

Notable points of contention may include discussions around the balance of regulatory power versus the operational flexibility of insurance companies. Stakeholders may express concerns about whether the increased regulatory framework could unintentionally lead to higher costs for consumers or limit the availability of insurance options in the market as companies adapt to these reporting requirements. The effectiveness of the bill will depend on the implementation of its provisions and the ongoing dialogues between regulatory bodies and the insurance sector.