ND HB1181

A North Dakota domestic insurer may be designated a domestic surplus lines insurer if it has at least $15 million in policyholder surplus, board approval, and written commissioner approval.

Domestic surplus lines insurers may write surplus lines insurance in North Dakota and other jurisdictions where eligible, provided premiums are subject to surplus lines premium tax and policies are issued under the surplus lines insurance multistate compliance compact.

Domestic surplus lines insurers are considered nonadmitted insurers under the federal Nonadmitted and Reinsurance Reform Act of 2010 with respect to risks insured in North Dakota.

Domestic surplus lines insurers cannot issue policies designed to satisfy motor vehicle financial responsibility requirements or other laws mandating insurance coverage by licensed insurance companies.

Domestic surplus lines insurers must comply with financial examination and solvency requirements for domestic insurers but are exempt from life and health insurance guaranty association and property and casualty insurance guaranty provisions.