Automobile Insurance and Warranties

What this document is

N.D. Cent. Code Ch. 26.1-40 - Automobile Insurance and Warranties is a state statute published by ndlegis.gov. It is one of the North Dakota documents that insurance license exam questions are written from, including north dakota property & casualty, north dakota personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• N.D. Cent. Code § 26.1-40-02(1) (Cancellation of policy - Exclusive reasons)

  “No insurer may cancel a policy except for the following reasons: a. Nonpayment of premium. b. Because the motor vehicle operator's license or motor vehicle registration of either the named insured or any other operator who resides in the same household as the named insured or who customarily...”

• N.D. Cent. Code § 26.1-40-02.1 (Cancellation of minor's driving privileges - Effect)

  “An insurer may not use or rely on the cancellation of a minor's driving privileges under section 39-06-01.1 as the sole reason to cancel, deny, or not renew the automobile insurance policy of the minor or a parent of the minor unless the points or offenses on the minor's public driving record,...”

• N.D. Cent. Code § 26.1-40-03 (Notice of cancellation)

  “No insurer may exercise its right to cancel a policy unless a written notice of cancellation is mailed or delivered to the named insured, at the address shown in the policy, at least twenty days prior to the effective date of cancellation. When cancellation is for nonpayment of premium, the notice...”

• N.D. Cent. Code § 26.1-40-11(4) (Terminations - Declinations - Prohibited reasons)

  “4. Based solely upon the age, sex, or marital status of an applicant or an insured, except that this subsection does not prohibit rating differentials based upon age, sex, or marital status.”

• N.D. Cent. Code § 26.1-40-15.2 (Uninsured motorist coverage)

  “1. No motor vehicle liability insurance policy may be delivered, issued for delivery, or renewed in this state with respect to any specifically insured or identified motor vehicle registered, licensed, and principally garaged in this state unless uninsured motorist coverage is provided therein or...”

• N.D. Cent. Code § 26.1-40-15.3(1) (Underinsured motorist coverage)

  “1. The insurer shall also provide underinsured motorist coverage at limits equal to the limits of uninsured motorist coverage. Underinsured motorist coverage must pay compensatory damages which an insured is legally entitled to collect for bodily injury, sickness, disease, including death resulting...”

• N.D. Cent. Code § 26.1-40-15.4(2) (Other insurance and priority of payment; stacking prohibited)

  “2. Regardless of the number of motor vehicles involved, the number of persons covered or claims made, vehicles or premiums shown in the policy or premiums paid, the limit of liability for uninsured motorist or underinsured motorist coverage may not be added to or stacked upon limits for such...”

• N.D. Cent. Code § 26.1-40-15.5(2) (Reimbursement and subrogation)

  “2. No insurer providing underinsured motorist coverage has a right of subrogation against an underinsured motorist if the insurer has been provided with a written notice in advance of an agreement, settlement, or judgment between its insured and the underinsured motorist, and the insurer fails to...”

• N.D. Cent. Code § 26.1-40-18(1)(2)(3) (Automobile warranties construed)

  “1. A person who issues a written automobile warranty contract, automobile mechanical breakdown contract, or automobile service contract shall maintain a policy of insurance which provides coverage for the person's contractual obligation. 2. The policy must be issued by an insurer licensed,...”

• N.D. Cent. Code § 26.1-40-02(1)(b) (Cancellation of policy - Exclusive reasons; license or registration suspension)

  “Because the motor vehicle operator's license or motor vehicle registration of either the named insured or any other operator who resides in the same household as the named insured or who customarily operates a motor vehicle insured under the policy has been suspended, rescinded, canceled, or...”

• N.D. Cent. Code § 26.1-40-05(2) (Nonrenewal - Notice - Statement of reasons - Nonrenewal not to be based on certain facts; exceptions)

  “Subsection 1 does not apply: a. If the insurer has manifested in any way its willingness to renew; b. In case of nonpayment of premium for the expiring policy; or c. If the insured fails to pay the premium as required by the insurer for renewal.”

• N.D. Cent. Code § 26.1-40-15.4(3) (Other insurance and priority of payment; order of priority among policies)

  “If an insured is entitled to uninsured motorist or underinsured motorist coverage under more than one policy, the maximum amount such insured may recover may not exceed the highest limit of such coverage provided for any one vehicle under any one policy. If more than one policy applies, the...”

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