North Dakota Updates Insurance Producer Regulations, Emphasizing Digital Communication
North Dakota is modernizing its oversight of insurance producers, according to recently passed legislation. Senate Bill No. 2125, introduced by the Industry and Business Committee, introduces new rules that prioritize electronic communication and heighten compliance requirements for specific industry professionals.
Email Now the Default for Regulatory Notices
One of the most notable changes is the requirement for all licensed insurance producers to maintain an electronic mailing address expressly for regulatory purposes. This shift toward digital-first enforcement means that the Insurance Commissioner can now deliver service of process and other official communications via email. The new law adds section 26.1-26-33.1, which makes producers responsible for regularly monitoring their designated email accounts. Failure to do so could lead to legal or administrative consequences.
Expanded Grounds for License Revocation
Another key feature is an expansion of the grounds for revoking nonresident producer licenses. Under revisions to section 26.1-26-42.1, a nonresident license may be suspended or revoked without notice or hearing if the producer’s home state license is revoked, suspended, or hasn’t been renewed. The National Association of Insurance Commissioners (NAIC) will provide notification of these actions, which streamlines the process and increases the need for nonresident producers to maintain good standing in both their home state and North Dakota.
Adjuster Compliance Requirements Tightened
Public adjusters also face new requirements. The bill modifies regulations related to license renewal, bonding, and continuing education. The renewal notice period for public adjuster licenses will be extended from 60 to 90 days before the license expires. Adjusters who allow their licenses to lapse have a limited time (12 months for individuals, 30 days for business entities) to reinstate or renew without examination, typically at a higher cost. The minimum bond requirement remains at $20,000, but a termination of that bond must be reported at least 30 days in advance. Any lapse in financial responsibility results in the automatic termination of the adjuster’s authority.
The bill also adjusts continuing education mandates, requiring adjusters to complete 24 credit hours biennially, including three hours dedicated to ethics. Nonresident adjusters may comply with these requirements by fulfilling those of their home state.
A Focus on Digital Accountability
At its core, Senate Bill 2125 represents the Insurance Commissioner’s goal to modernize the state’s insurance industry oversight. It places a greater emphasis on producers and adjusters by requiring they comply promptly with licensing, renewal, and educational requirements.
