SB 2131 Summary

• Creates chapter 26.1-10.2 of North Dakota Century Code requiring insurers to maintain a risk management framework and conduct own risk and solvency assessments (ORSA) consistent with National Association of Insurance Commissioners guidance manual

• Insurers must conduct ORSA at least annually and whenever significant changes occur to risk profile; larger insurers must submit summary reports to commissioner upon request, no more than once per year

• Exempts insurers with annual direct written and unaffiliated assumed premiums less than $500 million and insurance groups with less than $1 billion in premiums, with limited exceptions for troubled or hazardous financial condition insurers

• All ORSA documents and reports are confidential, proprietary trade secrets not subject to public disclosure, subpoena, or discovery in civil actions; commissioner may share with other regulators and NAIC under written confidentiality agreements

• Imposes penalty of $1,000 per day for insurers failing without just cause to timely file required ORSA summary reports, with commissioner discretion to reduce penalty for financial hardship