HB 1116 Summary

• Amends North Dakota's Life and Health Insurance Guaranty Association law to clarify coverage provisions, definitions, and operational procedures for handling impaired and insolvent insurers.

• Expands the association's account structure to include three subaccounts under the life insurance and annuity account (life insurance, annuity, and unallocated annuity) and maintains a separate health insurance account.

• Modifies assessment procedures to allow special allocation methodology for long-term care insurance assessments, with fifty percent allocated to accident and health member insurers and fifty percent to life and annuity member insurers.

• Clarifies coverage limitations and exclusions, including provisions for structured settlement annuities, Medicare/Medicaid benefits, and policies with index-based interest rates, with specific dollar limits on association obligations per individual.

• Repeals section 26.1-38.1-17 and applies the amended law prospectively to insurers placed under liquidation orders with insolvency findings after July 31, 2019.