North Dakota Code 26.1-46-07 – Notice and registration requirements of purchasing groups
1. A purchasing group which intends to do business in this state shall, prior to doing business, furnish notice to the commissioner on forms prescribed by the national association of insurance commissioners which must do all of the following:
Terms Used In North Dakota Code 26.1-46-07
- 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
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Process: means a writ or summons issued in the course of judicial proceedings. 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
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
a. Identify the state in which the group is domiciled.
b. Identify all other states in which the group intends to do business.
c. Specify the lines and classifications of liability insurance which the purchasing group intends to purchase.
d. Identify the insurance company from which the group intends to purchase its insurance and the domicile of such company.
e. Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state.
f. Identify the principal place of business of the group.
g. Provide such other information as may be required by the commissioner to verify that the purchasing group is qualified under subsection 10 of section 26.1-46-01.
2. A purchasing group shall, within ten days, notify the commissioner of any changes in any of the items set forth in subsection 1.
3. The purchasing group shall register with and designate the insurance commissioner as its agent solely for the purpose of receiving service of legal documents or process, except that such requirements do not apply in the case of a purchasing group which only purchases insurance that was authorized under the federal Products Liability Risk Retention Act of 1981 to which all of the following apply:
a. The group was domiciled before April 1, 1986, and is domiciled on and after October 27, 1986, in any state of the United States.
b. Before October 27, 1986, the group purchased insurance from an insurance carrier licensed in any state and since October 27, 1986, the group purchased its insurance from an insurance carrier licensed in any state.
c. The group was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981 before October 27, 1986.
d. The group does not purchase insurance that was not authorized for purposes of an exemption under that Act, as in effect before October 27, 1986.
e. Each purchasing group that is required to give notice pursuant to subsection 1 shall also furnish such information as may be required by the commissioner to verify that the entity qualifies as a purchasing group, determine where the purchasing group is located, and determine appropriate tax treatment.
f. Any purchasing group which was doing business in this state prior to the enactment of this chapter shall, within thirty days after August 1, 1993, furnish notice to the commissioner pursuant to the provisions of subsection 1 and furnish such information as may be required pursuant to subsections 2 and 3.