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SB 2089

A BILL for an Act to amend and reenact subsection 1 of section 26.1-02-31 and subsection 6 of section 26.1-03-19.4 of the North Dakota Century Code, relating to confidentiality of insurance department records.

69th Legislative Assembly (2025-26)

SB 2089 tightens confidentiality for insurance records, keeping claim files and examiner materials private from open records and private suits while allowing regulator use and NAIC

Second reading, failed to pass, yeas 2 nays 89
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Bill Summary · SB 2089

Summary — SB 2089 (North Dakota)

Title: An Act to amend and reenact subsection 1 of section 26.1‑02‑31 and subsection 6 of section 26.1‑03‑19.4 of the North Dakota Century Code, relating to confidentiality of insurance department records

Main purpose / intent

SB 2089 would tighten and clarify confidentiality protections for records and information provided to the North Dakota Insurance Commissioner. The bill explicitly confirms that certain documents — including claim files and examiner working papers — are confidential, not subject to the state open records law, not discoverable or admissible in private civil actions, while preserving the Commissioner’s ability to use such information for regulatory or legal enforcement.

Key provisions

  • Amends NDCC 26.1‑02‑31(1):

    • Treats any document, material, or information (including claim file contents) provided to or obtained by the Commissioner in response to a consumer assistance request or complaint as confidential.
    • States these materials are not subject to ND open records law (section 44‑04‑18), subpoena to the department, discovery requests, or admissible as evidence in private civil actions.
    • Permits the Commissioner to disclose the subject matter of a complaint, provide a general description of its disposition, and to use the documents/materials for regulatory or legal actions within the Commissioner’s official duties.
    • Does not prevent the Commissioner from publishing administrative orders or providing general descriptions of dispositions.

  • Amends NDCC 26.1‑03‑19.4(6):

    • Declares all working papers, recorded information, documents, and copies produced, obtained, or disclosed during an examination or financial/market conduct analysis confidential and not subject to subpoena or public disclosure, except as allowed under subsection 5.
    • Explicitly allows access to the National Association of Insurance Commissioners (NAIC).
    • Requires written agreement from third parties who receive the information to provide the same confidential treatment, unless the company consents in writing.
    • Specifies that disclosure to the Commissioner or sharing as authorized does not waive existing privileges or confidentiality claims.

Who is affected

  • Insurance Commissioner and departmental staff (clarifies their authority and limits on disclosure).
  • Insurers and insurance companies (protects examiner working papers and company information).
  • Consumers and claimants who file complaints or requests for assistance (their submitted materials would be confidential but may not be usable in private litigation).
  • Private litigants and their attorneys (limits ability to discover or admit department-held claim files and examiner materials in civil suits).
  • Other regulators and NAIC (permitted recipients under confidentiality protections, subject to written agreements).

Procedural / timeline notes

  • Introduced: March 7, 2025 (at the request of the Insurance Commissioner).
  • Consideration: Reported out of Industry & Business Committee with proposed amendments (committee report prepared).
  • Final action: Second reading — failed to pass (yeas 2, nays 89).

Potential impacts / considerations

  • Strengthens protections for sensitive insurance records and internal examination materials, aligning state practice with regulatory confidentiality objectives and NAIC information‑sharing practices.
  • May reduce the ability of private plaintiffs to obtain department files for use in civil litigation, which could affect discovery strategies in insurance disputes.
  • Preserves regulators’ access and enforcement capabilities while creating required confidentiality agreements for third‑party access.
  • Implementation and practical effect depend on how exceptions in subsection 5 (referenced in the bill) are applied and on administrative guidance by the Insurance Department.

(Amends NDCC sections 26.1‑02‑31(1) and 26.1‑03‑19.4(6).)

Compiled from official sources — confirm details with the bill’s official record.

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