North Dakota Code 26.1-23.1-03 – Government self-insurance pool approval from the commissioner
Before the insurance commissioner authorizes the operation of a government self-insurance pool, the pool shall provide the following:
Terms Used In North Dakota Code 26.1-23.1-03
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. 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
1. A financial plan setting forth:
a. The insurance coverages to be offered by the pool, applicable deductible levels, and the maximum level of claims to be self-insured against.
b. The amount of cash reserves to be set aside for the payment of claims.
c. The amount of aggregate excess insurance or reinsurance coverage to be purchased in the event that the pool’s resources are exhausted in a given fiscal period.
2. A plan of management which must provide the following:
a. The means of establishing the governing authority of the pool and, if the governing authority of the pool is set forth in articles of incorporation, the articles must be filed in the office of the secretary of state and a certified copy must be filed with the commissioner. The commissioner may not issue a certificate to the pool if, in the commissioner’s judgment, the company’s name too closely resembles the name of an existing corporation or is liable to mislead the public.
b. The responsibility of the governing authority with regard to fixing contributions to the pool by participating government political subdivisions, maintaining reserves, levying and collecting assessments for deficiencies, disposing of surplus, and administering the pool in the event of termination or insolvency.
c. The basis upon which new members may be admitted to, and existing members may leave or have membership terminated by, the pool.
d. The identification of funds and reserves by exposure areas.
e. Other provisions necessary or desirable for the operation of the pool.
3. A plan for the election by pool members of a governing authority, which must be a board of directors for the pool.