Insurance Guaranty Association

What this document is

N.D. Cent. Code Ch. 26.1-42.1 - Insurance Guaranty Association 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 § 26.1-42.1-01 (Scope)

  “26.1-42.1-01. Scope. This chapter applies to every kind of direct insurance, except: 1. Life, annuity, health, or disability insurance; 2. Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks; 3. Fidelity or surety bonds or any other bonding obligations;”

• N.D. Cent. Code § 26.1-42.1-02(5)(a) (Definitions; covered claim exclusions)

  “The term does not include: a. Any amount awarded as punitive or exemplary damages;”

• N.D. Cent. Code § 26.1-42.1-05(1)(a) (Powers and duties of the association)

  “a. Shall pay covered claims existing before the order of liquidation and arising within thirty days after the order of liquidation or before the policy expiration date if less than thirty days after the order of liquidation, or before the insured replaces the policy or causes the policy's...”

• N.D. Cent. Code § 26.1-42.1-05(1)(d) (Powers and duties of the association; assessments)

  “The assessments of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bears to the net direct written premiums of all member insurers for the calendar year preceding the assessment.”

• N.D. Cent. Code § 26.1-42.1-02(5)(c) (Definitions; covered claim exclusion for subrogation and reinsurance recoveries)

  “Any amount due any reinsurer, insurer, insurance pool, or underwriting association as subrogation recoveries, as reinsurance recoveries, as contribution, as indemnification, or otherwise. A claim under this subdivision for any amount due any reinsurer, insurer, insurance pool, or underwriting...”

• N.D. Cent. Code § 26.1-42.1-07(2)(a) (Duties and powers of the commissioner; fine for unpaid assessment)

  “A fine under this subdivision may not exceed five percent of the unpaid assessment per month, except that a fine may not be less than one hundred dollars per month.”

• N.D. Cent. Code § 26.1-42.1-04(1) (Board of directors; vacancies)

  “A vacancy on the board must be filled for the remaining period of the unexpired term by a majority vote of the remaining board members, subject to the approval of the commissioner. If the initial board members are not selected within sixty days after August 1, 1999, the commissioner may appoint the...”

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• N.D. Cent. Code Ch. 26.1-04 - Unfair Trade PracticesState statute
• N.D. Cent. Code Ch. 26.1-26 - Insurance Producers, Consultants, and AdjustersState statute
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