AN ACT to amend and reenact sections 26.1-01-03, 26.1-22-01, 26.1-22-02, 26.1-22-02.1, 26.1-22-03.1, 26.1-22-09, 26.1-22-10, 26.1-22-11, 26.1-22-14, 26.1-22-16, 26.1-22-17, 26.1-22-21, and 26.1-22-22, subdivisions a and c of subsection 1 of section 26.1-23.1-01, and section 37-03-13 of the North Dakota Century Code, relating to changing the administration of the state fire and tornado fund from the insurance commissioner to the office of management and budget; to repeal sections 26.1-22-03, 26.1-22-05, 26.1-22-06, 26.1-22-06.1, 26.1-22-08, 26.1-22-10.1, 26.1-22-13, 26.1-22-15, 26.1-22-18, 26.1-22-19, and 26.1-22-21.1 of the North Dakota Century Code, relating to the administration of the state fire and tornado fund; to provide for a legislative management study; and to provide a continuing appropriation.

69th Legislative Assembly (2025-26)

Transfers fire and tornado fund administration from Insurance Commissioner to Office of Management and Budget, consolidating state insurance oversight under fiscal rather than regulatory authority.

Filed with Secretary Of State 04/22

Legislative bill overview

HB 1027 transfers administrative responsibility for North Dakota's state fire and tornado insurance fund from the Insurance Commissioner to the Office of Management and Budget (OMB). The bill repeals multiple sections of existing insurance code related to fund administration and consolidates oversight under the OMB framework.

Why is this important

The state fire and tornado fund is a critical insurance mechanism protecting property owners when commercial coverage is unavailable or unaffordable. Shifting administration changes who manages claims processing, rate-setting, financial reserves, and policyholder relations—affecting thousands of North Dakota residents and businesses relying on this safety-net coverage.

Potential points of contention

Expertise alignment: The Insurance Commissioner has specialized training in insurance regulation and claims management, while OMB typically focuses on budget and fiscal oversight—raising questions about whether the new agency has adequate insurance-specific expertise

Rate-setting and policyholder protections: Repealing multiple regulatory sections could reduce consumer protections or oversight mechanisms previously governing rates, claim denials, and fund solvency

Fragmentation of authority: Splitting insurance-related functions between OMB and remaining insurance regulations may create coordination gaps or regulatory inconsistencies in how the state manages insurance matters