North Dakota Code 26.1-02-05.2 – Nonprofit agricultural membership organizations
1. Except as provided under this section, a nonprofit agricultural membership organization is not subject to this title or the jurisdiction of the commissioner. Health care coverage provided by a nonprofit agricultural membership organization to members of the organization is not insurance regulated under this title.
Terms Used In North Dakota Code 26.1-02-05.2
- Contract: A legal written agreement that becomes binding when signed.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
2. Any risk arising out of the health care coverage provided by a nonprofit agricultural membership organization or an affiliate of the organization must be reinsured by a company authorized to conduct insurance in this state.
3. A nonprofit agricultural membership organization may not provide health care coverage under this section unless the organization has filed with the commissioner verification the organization meets the requirements of this section.
4. Health care coverage under this section may be sold only by an insurance producer who is both appointed by the nonprofit agricultural membership organization and licensed as an insurance producer to sell or solicit health insurance in this state.
5. Health care coverage under this section must provide benefits under a self-funded arrangement administered by an entity that holds a certificate of authority under section 26.1-27-03.
6. A health care coverage application for coverage under this section and any related contract provided to the member prominently must state the health care coverage is not insurance, is not provided by an insurance company, is not subject to the laws and rules governing insurance, and is not subject to the jurisdiction of the commissioner.
7. As used in this section, “nonprofit agricultural membership organization” means an organization incorporated under the laws of this state before August 1, 2023, for the purpose of promoting the interests of farmers in the state, or an affiliate of the organization, which organization or affiliate provides health care coverage for members and the families of the members pursuant to a contract between the member and the organization or affiliate.