Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2124
(Industry and Business Committee)
(At the request of the Insurance Commissioner)
AN ACT to create and enact section 26.1-03-19.8 and a new section to chapter 26.1-03 of the North
Dakota Century Code, relating to insurance company inquiries and insurance company
statements; and to amend and reenact section 26.1-03-19.1 and subsection 6 of section
26.1-03-19.4 of the North Dakota Century Code, relating to insurance company definitions and
examination records.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 26.1-03-19.1 of the North Dakota Century Code is amended
and reenacted as follows:
26.1-03-19.1. Examination of companies - Definitions.
In sections 26.1-03-19.1 through 26.1-03-19.726.1 - 03 - 19.8 , unless the context otherwise requires:
1."Company" means any foreign or domestic insurance company as defined in section
26.1-02-01.
2."Data call" means an inquiry addressed to a company issued before, or in lieu of an
examination under this chapter.
3."Examiner" means any individual or firm having been authorized by the commissioner to
conduct an examination under this chapter.
3.4."Person" means any individual, aggregation of individuals, trust, association, partnership, or
corporation, or any affiliate thereof.
SECTION 2. AMENDMENT. Subsection 6 of section 26.1-03-19.4 of the North Dakota Century
Code is amended and reenacted as follows:
6.All working papers, recorded information, documents, and copies thereof produced by,
obtained by, or disclosed to the commissioner or any other person in the course of an
examination made under this chapter, or in the course of analysis by the commissioner of the
financial condition or market conduct of the company, must be given confidential treatment
and are not subject to subpoena and may not be made public by the commissioner or any
other person, except as provided in this subsection and to the extent provided in subsection 5.
Access also may be granted to the national association of insurance commissioners. The
parties must agree in writing prior to receiving the information to provide to it the same
confidential treatment as required by this section, unless the prior written consent of the
company to which it pertains has been obtained. This subsection may not be construed as
prohibiting the commissioner from making public aggregate or anonymized information from
the materials contemplated in this subsection.
SECTION 3. Section 26.1-03-19.8 of the North Dakota Century Code is created and enacted as
follows:
26.1 - 03 - 19.8. Data calls.
1.The commissioner or the commissioner's designated representative may issue a data call
under this chapter whenever the commissioner deems it appropriate. The insurance company S. B. NO. 2124 - PAGE 2
shall reply in writing to the data call within twenty days of receipt of the inquiry unless within
that twenty days the company requests and the commissioner grants an extension of time.
2.For purposes of completing a data call under this section, the commissioner may inquire into
any person, or the business of any person, to the extent the inquiry or investigation is, in the
sole discretion of the commissioner, necessary or material to the operations of the company.
3.The commissioner may designate the national association of insurance commissioners or
another representative as the repository for data call responses.
4.All materials, working papers, information, documents, and copies produced by, obtained by,
or disclosed to the commissioner or any other person in the course of a data call made under
this chapter, or in the course of analysis by the commissioner of the market conduct of the
company:
a.Must be given confidential treatment;
b.Are not subject to subpoena; and
c.May not be made public by the commissioner or any other person, except to the extent
provided in this chapter.
5.The commissioner may use the documents, materials, or other information in furtherance of
any regulatory or legal action brought as part of the commissioner's official duties.
6.The commissioner may make the results of the data call available for public inspection in an
aggregate and anonymized format that does not disclose information or data attributed to any
specific company or person, including the name of any company or person who responded to
the data call.
7.The commissioner may adopt rules to administer this section.
SECTION 4. A new section to chapter 26.1-03 of the North Dakota Century Code is created and
enacted as follows:
Market conduct annual statement.
1.The commissioner may require a foreign or domestic insurance company to annually file a
market conduct annual statement. The statement must:
a.Be filed with the commissioner, or with the commissioner's designee, on a date specified
by the commissioner;
b.Include the scope of information prescribed by the commissioner; and
c.Be in the proper form and transmitted, as prescribed by the commissioner.
2.The commissioner may, in the commissioner's discretion and for good cause, exclude an
insurance company from filing a statement under this section.
3.The commissioner may adopt rules to implement and administer this section. S. B. NO. 2124 - PAGE 3
____________________________ ____________________________
President of the Senate Speaker of the House
____________________________ ____________________________
Secretary of the Senate Chief Clerk of the House
This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
Dakota and is known on the records of that body as Senate Bill No. 2124.
Senate Vote:Yeas 46 Nays 0 Absent 1
House Vote: Yeas 91 Nays 1 Absent 2
____________________________
Secretary of the Senate
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State