North Dakota Department of Insurance Schedules January 10, 2012 Public Hearing on Amendments to Insurance-Related Administrative Rules

The North Dakota Department of Insurance (“Department”) has scheduled a January 10, 2012 public hearing to consider amendments to the following Administrative Rules related to licensing of third-party administrators, insurance continuing education, accounting practices, custodial agreement requirements, surplus lines insurance and numerous definitions based on changes made during the 2011 North Carolina Legislative Session:

• 45-02-03 Licensing of Administrators:  This chapter is being amended to align the requirements for licensing third-party administrators with best practices.
• 45-02-04 Insurance Continuing Education:  The amendments to this Rule repeal an outdated provision on continuing education course approval and restore the continuing education exemption for limited lines producers.
• 45-03-15 Accounting Practices and Procedures:  Two sections in this chapter are being amended to update the required Accounting Procedures and Practices Handbook from the 2009 version to the 2011 version.
• 45-03-23 Custodial Agreements and the Use of Clearing Corporations:  A provision is being added to Section 45-03-23-02 to allow insurers having direct written and assumed premiums of less than $3 million in any calendar year to request an exemption from the requirements for a written agreement with the custodian of the insurer’s securities that complies with subsection 2 of that section.
• 45-09-01 Surplus Lines Insurance:  This Rule is being amended as a result of changes made during the North Dakota 2011 Legislative session to align with the federal Nonadmitted and Reinsurance Reform Act of 2010.
• 45-11-01 Life and Health Insurance Guaranty Association:  The Rule is being amended to update the notice that insurers must give to policy owners regarding the limits of the North Dakota Life and Health Guaranty Association.
• 45-12 Boilers – Definitions, General Requirements, Installations:  The Rules in Article 45-12 are being amended as a result of changes made during the 2011 Legislative Session.

The hearing is scheduled for 10:00 a.m. in the Red River Room of the State Capitol building in Bismarck, North Dakota.

A copy of the Rules and the regulatory analyses can be reviewed on the Department’s Web site at www.nd.gov/ndins or can be requested by calling (701) 328-2440.

To view the official Notice of Intent to Amend Administrative Rules and the Notice of Public Hearing, click here.

Should you have any comments or questions, please contact Colodny Fass.