ND HB1286

Amends North Dakota Century Code section 26.1-29-09.1 to clarify that a person cannot procure insurance on another individual's life or body unless benefits are payable to the insured person, their personal representatives, or someone with an insurable interest in the insured individual.

Allows the insured individual or their executor or administrator to recover insurance benefits from any beneficiary, assignee, or payee who receives payments in violation of the insurable interest requirements.

Defines insurable interest for individuals closely related by blood or law as requiring a substantial interest engendered by love and affection.

Expands insurable interest to include service providers receiving nonqualified deferred compensation plans under Internal Revenue Code section 409A(d)(1), allowing service recipients or trusts to purchase insurance on service providers' lives with written consent.

Permits employers and trust trustees providing employee benefits to purchase life, health, disability, and retirement insurance for employees, with written consent required if the employer or trustee is named as beneficiary.