North Dakota Code 26.1-44-01.1 – Definitions
1. “Admitted insurer” means an insurer licensed to engage in the business of insurance in this state.
Terms Used In North Dakota Code 26.1-44-01.1
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Individual: means a human being. See North Dakota Code 1-01-49
- 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
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- population: means the number of inhabitants as determined by the last preceding state or federal census. See North Dakota Code 1-01-47
- Property: includes property, real and personal. 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. “Eligible surplus lines insurer” means a nonadmitted insurer with which a surplus lines producer may place surplus lines insurance pursuant to section 26.1-44-03.
3. “Exempt commercial purchaser” means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
a. The person employs or retains a qualified risk manager to negotiate insurance coverage.
b. The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars in the immediately preceding twelve months.
c. (1) The person meets at least one of the following criteria:
(a) The person possesses a net worth in excess of twenty million dollars, as such amount is adjusted pursuant to paragraph 2.
(b) The person generates annual revenues in excess of fifty million dollars, as such amount is adjusted pursuant to paragraph 2.
(c) The person employs more than five hundred full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand employees in the aggregate.
(d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars, as such amount is adjusted pursuant to paragraph 2.
(e) The person is a municipality with a population in excess of fifty thousand persons.
(2) Each fifth January first occurring after July 21, 2010, and ongoing thereafter, the amounts in subparagraphs a, b, and d of paragraph 1 will be adjusted to reflect the percentage change for such five-year period in the consumer price index for all urban consumers published by the bureau of labor statistics of the department of labor.
4. “Home state”.
a. Except as provided in subdivision b, “home state” means, with respect to an insured:
(1) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or
(2) If one hundred percent of the insured risk is located out of the state referred to in paragraph 1, the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
b. If more than one insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term “home state” means the home state, as determined pursuant to subdivision a, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.
5. “Independently procured insurance” means insurance procured directly by an insured from a nonadmitted insurer.
6. “Kind of insurance” means one of the types of insurance required to be reported in the annual statement which must be filed with the commissioner by admitted insurers.
7. “Nonadmitted insurance” means any property and casualty insurance permitted to be placed directly or through a surplus lines producer with a nonadmitted insurer eligible to accept such insurance pursuant to section 26.1-44-03.
8. “Nonadmitted insurer” means an insurer not licensed to engage in the business of insurance in this state but does not include a risk retention group as defined in paragraph 4 of subdivision a of section 2 of the Liability Risk Retention Act of 1986 [15 U.S.C. § 3901(a)(4)].
9. “Surplus lines insurance” means any property and casualty insurance on properties, risks, or exposures, located or to be performed in this state, permitted to be placed through a surplus lines producer with a nonadmitted insurer eligible to accept such insurance pursuant to section 26.1-44-03.
10. “Surplus lines producer” means a person licensed under chapter 26.1-26 to place insurance on properties, risks, or exposures with nonadmitted insurers eligible to accept such insurance pursuant to section 26.1-44-03.
11. “Type of insurance” means coverage afforded under the particular policy that is being placed.