Bill
HB 1123
Centralizes and updates North Dakota Insurance Commissioner fees in section 26.1-01-07, and raises the Insurance Regulatory Trust Fund transfer threshold to $2.5 million.
Status: Filed with Secretary of State 03/18 (Introduced Nov. 12, 2024); multiple committee engrossments; bill prepared at the request of the Insurance Commissioner.
Purpose
- To revise the statutory schedule and cross‑references for fees charged by the Insurance Commissioner and to adjust the administration of the Insurance Regulatory Trust Fund. The bill centralizes fee amounts in section 26.1‑01‑07 and updates various fee cross‑references throughout Title 26.1 of the North Dakota Century Code.
Key provisions and changes
- Centralized fee authority: Section 26.1‑01‑07 is revised to list and (in several cases) increase specific fees the Commissioner charges for corporate filings, licenses, renewals, and other regulated‑entity transactions. Other code sections are amended to reference the fee amounts “prescribed in section 26.1‑01‑07,” consolidating fee-setting in one place.
- Representative fee changes (selected examples appearing in bill drafts):
- Filing articles of incorporation: $25 → $50.
- Original certificate of authority and annual renewal: $100 → $150.
- Amendment to certificate of authority / certified copy: $50 → $100.
- Filing of annual statement: examples in drafts show $25 → $100 (life settlement and other categories separately identified).
- Abstract of annual statement for publication: $30 → $50.
- Many other license and renewal fees for producer licenses, surplus lines, public adjusters, advisory organizations, premium finance companies, life settlement providers/brokers, and life/health administrators are listed or referenced centrally.
- Biennial producer continuation fee: Section 26.1‑26‑13.4 continues the requirement to file and pay the continuation fee, with language tying the fee to the central fee section.
- Licensing fee caps and cross‑references: Several licensing provisions that formerly specified maximum amounts now instead refer to “as prescribed in section 26.1‑01‑07,” enabling consistent administration.
- Insurance Regulatory Trust Fund balance transfer threshold: Subsection 3 of section 26.1‑01‑07.1 is amended so that, after fiscal year close, any fund balance in the Insurance Regulatory Trust Fund exceeding $2,500,000 (drafts show change from $1,000,000 to $2,500,000) is transferred to the general fund. (This raises the threshold that must be retained in the trust fund before transfer.)
- Fee adjustments and refunds:
- The Commissioner retains (or is expressly authorized) the ability, after public notice and hearing, to increase fees if needed to generate revenues appropriated from the trust fund to fund departmental operations — with restrictions (draft language varies) intended to prevent fee increases from augmenting legislative appropriations inappropriately.
- The bill also specifies a refund mechanism for erroneously paid fees: claimants must present refund claims within two years of the fee’s due date; refunds may be issued in cash at the Commissioner’s discretion.
Who is affected
- Insurance companies (domestic and foreign), county mutuals, fraternal benefit societies, life settlement providers/brokers, surplus lines producers, insurance producers and their appointees, public adjusters, insurance premium finance companies, advisory organizations, and other licensees regulated under Title 26.1.
- The Department of Insurance administration and the Insurance Regulatory Trust Fund (as the fee revenue flow and retained balance rule are modified).
- Potential indirect impact on policyholders or businesses if fee increases are passed through in costs.
Procedural / timing notes
- The bill was prepared at the Insurance Commissioner’s request and moved through committee engrossments. Multiple drafts (introduced → first/second engrossment) show iterative edits; the core intent is to centralize and update the fee schedule and trust fund threshold.
- No single effective date is specified in the excerpts provided; timing would follow the enacted version. Parties affected should monitor the final enrolled bill and any implementing rules or fee schedules published by the Department of Insurance.
Potential fiscal/operational impact
- Short term: increased administrative fee revenue to the Insurance Regulatory Trust Fund (depending on final fee amounts and implementation).
- Medium/long term: higher thresholds for fund transfers leave more balance retained in the trust fund before transfers to the general fund, potentially stabilizing Department of Insurance funding; regulated entities face higher or restructured fees.
For further detail
- Consult the final enrolled/official version of HB 1123 (section 26.1‑01‑07 and the listed cross‑referenced sections) and any Department of Insurance notices implementing new fees or procedures.
Compiled from official sources — confirm details with the bill’s official record.
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