HB 1124 — Relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
Last action — Filed with Secretary Of State 03/18
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 07, 2025. Enacted.
Signed by Governor Kelly Armstrong (Republican) on March 18, 2025.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
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Prognosis
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Cleared a recorded vote
Passed 2 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
AN ACT to amend and reenact sections 26.1-10-01, 26.1-10-04, 26.1-10-05, and 26.1-10-07 of the North Dakota Century Code, relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
Bill Text
What changed in the latest version
610 added · 695 removed610 line(s) added, 695 removed.
25.8125.01000 Sixty-ninth Legislative Assembly of North Dakota In Regular Session Commencing Tuesday, January 7, 2025 HOUSE BILL NO.
1124 of(Industry, North Dakota Introduced by Industry, Business and Labor CommitteeCommittee) (At the request of the Insurance Commissioner) AAN BILLACT for an Act to amend and reenact sections 26.1-10-01, 26.1-10-04, 26.1-10-05, and 26.1-10-07 of the North Dakota Century Code, relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such Pagedetermination, No.that control exists in fact, notwithstanding the absence of a presumption to that effect.
1 25.8125.01000 Sixty-ninth Legislative Assembly determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
"Enterprise risk" means any activity, circumstance, event, or series of events involving one or more affiliates of an insurer which, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or the insurer's insurance holding company system as a whole including anything that would cause the insurer's risk-basedrisk- based capital to fall into company action level as set forth in section 26.1-03.1-03 or would cause the insurer to be in hazardous financial condition as set forth in North Dakota Administrative Code section 45-03-13-01.
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1124 - PAGE 2 6.7.
Based on a three-year rolling average, the total assets of the insurance holding company system are at least fifty billion dollars or the total gross written Pagepremiums No.of the insurance holding company system are at least ten billion dollars.
2 25.8125.01000 Sixty-ninth Legislative Assembly premiums of the insurance holding company system are at least ten billion dollars.
Every insurer that is authorized to do business in this state and which is a member of an insurance holding company system shall register with the commissioner, except a foreign insurer subject to registration requirements and standards adopted by statute or rule in the jurisdiction of its domicile which are substantially similar to those Pagecontained No.in this section and section 26.1-10-05.
3 25.8125.01000 Sixty-ninth Legislative Assembly contained in this section and section 26.1-10-05.
The commissioner may require any insurer authorized to do business in the state which is a member of an insurance holding company system not subject to registration under this section to furnish a copy of the registrationH. statement, the summary specified in subsection 10 of section 26.1-10-04, or other information filed by the insurer with the insurance regulatory authority of the domiciliary jurisdiction.
B.
NO.
1124 - PAGE 3 registration statement, the summary specified in subsection 10 of section 26.1-10-04, or other information filed by the insurer with the insurance regulatory authority of the domiciliary jurisdiction.
Page(7) No.Dividends and other distributions to shareholders.
4 25.8125.01000 Sixty-ninth Legislative Assembly (7) Dividends and other distributions to shareholders.
Unless the commissioner by ruleH. or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments, or guarantees involving one-half of one percent or less of an insurer's admitted assets as of December thirty-first next preceding are not material for purposes of this section.
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NO.
1124 - PAGE 4 rule or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments, or guarantees involving one-half of one percent or less of an insurer's admitted assets as of December thirty-first next preceding are not material for purposes of this section.
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5 25.8125.01000 Sixty-ninth Legislative Assembly 4.
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6 25.8125.01000 Sixty-ninth Legislative Assembly 11.
The report must be completed in accordance with the national association of insurance commissioners group capital calculation instructions, which mayH. permit the lead state commissioner to allow a controlling person that is not the ultimate controlling person to file the group capital calculation.
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NO.
1124 - PAGE 5 may permit the lead state commissioner to allow a controlling person that is not the ultimate controlling person to file the group capital calculation.
If the federal reserve board cannot share the Pagecalculation No.with the lead state commissioner, the insurance holding company system is not exempt from the group capital calculation filing.
7 25.8125.01000 Sixty-ninth Legislative Assembly calculation with the lead state commissioner, the insurance holding company system is not exempt from the group capital calculation filing.
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1124 - PAGE 6 15.
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9 25.8125.01000 Sixty-ninth Legislative Assembly b.
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1124 - PAGE 7 d.
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10 25.8125.01000 Sixty-ninth Legislative Assembly f.
At the request of the insurer, the affiliate shall permit the receiver to obtain a complete set of all records of any type that pertain to the insurer's business, obtain access to the operating systems on which the data is maintained, obtain the software Pagethat No.runs those systems either through assumption of licensing agreements or otherwise, and restrict the use of the data by the affiliate if it is not operating the insurer's business.
11 25.8125.01000 Sixty-ninth Legislative Assembly that runs those systems either through assumption of licensing agreements or otherwise, and restrict the use of the data by the affiliate if it is not operating the insurer's business.
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1124 - PAGE 8 a.
Loans or extensions of credit to any person that is not an affiliate, if the insurer makes loans or extensions of credit with the agreement or understanding that the proceeds of the transactions, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make Pageinvestments No.in any affiliate of the insurer making the loans or extensions of credit provided the transactions are equal to or exceed:
12 25.8125.01000 Sixty-ninth Legislative Assembly investments in any affiliate of the insurer making the loans or extensions of credit provided the transactions are equal to or exceed:
A direct or indirect acquisition or investment in a Pagesubsidiary No.acquired pursuant to section 26.1-10-02, or authorized under any other section of this chapter, or in a nonsubsidiary insurance affiliate that is subject to this chapter, is exempt from this requirement.
13 25.8125.01000 Sixty-ninth Legislative Assembly subsidiary acquired pursuant to section 26.1-10-02, or authorized under any other section of this chapter, or in a nonsubsidiary insurance affiliate that is subject to this chapter, is exempt from this requirement.
NothingH. in this subsection may be deemed to authorize or permit any transactions which, in the case of an insurer which is not a member of the same insurance holding company system, would be otherwise contrary to law.
B.
NO.
1124 - PAGE 9 Nothing in this subsection may be deemed to authorize or permit any transactions which, in the case of an insurer which is not a member of the same insurance holding company system, would be otherwise contrary to law.
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14 25.8125.01000 Sixty-ninth Legislative Assembly d.
or b.H.
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1124 - PAGE 10 b.
This carry-forward must be computed by taking the net income from the second and third preceding Pagecalendar No.years, not including realized capital gains, less dividends paid in the second and immediate preceding calendar years.
15 25.8125.01000 Sixty-ninth Legislative Assembly calendar years, not including realized capital gains, less dividends paid in the second and immediate preceding calendar years.
Any document, material, or other information in the possession or control of the North Dakota insurance department which is obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to section 26.1-10-06 and all information reported pursuant to subdivisions l and m of subsection 2 of section 26.1-10-03 and sections 26.1-10-04 and 26.1-10-05 is confidential and privileged, not subject to section 44-04-18, not subject to subpoena, Pageand No.not subject to discovery or admissible in evidence in any private civil action.
16 25.8125.01000 Sixty-ninth Legislative Assembly and not subject to discovery or admissible in evidence in any private civil action.
The commissioner may not otherwise make the document, material, or other information public without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer and its affiliates that would be affected thereby, notice and opportunity to be heard, determines that the interests of policyholders, shareholders, or the public will be served by the publication thereof, in which eventH. the commissioner may publish all or any part thereof in any manner the commissioner deems appropriate.
B.
NO.
1124 - PAGE 11 event the commissioner may publish all or any part thereof in any manner the commissioner deems appropriate.
If the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information, and has verified in writing the legal authority to maintain confidentiality, the commissioner may share any document, material, or other information, including the confidential and privileged Pagedocument, No.material, or information subject to subsection 1, including proprietary and trade secret documents and materials, with any other state, federal, and international regulatory agency, the national association of insurance commissioners and its affiliates and subsidiaries, any third-party consultant designated by the commissioner, and any state, federal, or international law enforcement authority, including members of any supervisory college described in section 26.1-10-06.1;
17 25.8125.01000 Sixty-ninth Legislative Assembly document, material, or information subject to subsection 1, including proprietary and trade secret documents and materials, with any other state, federal, and international regulatory agency, the national association of insurance commissioners and its affiliates and subsidiaries, any third-party consultant designated by the commissioner, and any state, federal, or international law enforcement authority, including members of any supervisory college described in section 26.1-10-06.1;
(1) Specify procedures and protocols regarding the confidentiality and security of information shared with the national association of insurance commissioners and its affiliates and subsidiariesor any third-party consultant designated by the commissioner under this chapter, including procedures and protocols for sharing by theH. national association of insurance commissioners with any other state, federal, or international regulator;.
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18NO. 25.8125.01000 Sixty-ninth Legislative Assembly written agreement must provide the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or other information and has verified in writing the legal authority to maintain such confidentiality;
1124 - PAGE 12 the national association of insurance commissioners with any other state, federal, or international regulator;.
The written agreement must provide the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or other information and has verified in writing the legal authority to maintain such confidentiality;
(3) Excluding documents, materials, or information reported under subsections 13 and 14 of section 26.1-10-04, prohibit the national association of insurance commissioners or a third-party consultant designated by the commissioner from storing the information shared under this chapter in a permanent database after the underlying analysis is complete;
and (4)(5) Require the national association of insurance commissioners and its affiliates and subsidiariesor third-party consultants designated by the commissioner to consent to intervention by an insurer in any judicial or administrative action in which the national association of insurance commissioners and its affiliates and subsidiariesor a third-party consultant designated by the commissioner may be required to disclose confidential information about the insurer shared with the national association of insurance commissioners and its affiliates and subsidiariesor a third-partythird- party consultant designated by the commissioner under this chapter.;
and Page(6) No.Documents, materials, or information reported under subsection 13 and 14 of section 26.1-10-04, in the case of an agreement involving a third-party consultant, provide for notification of the identity of the consultant to the applicable insurer.
19 25.8125.01000 Sixty-ninth Legislative Assembly (6) Documents, materials, or information reported under subsection 13 and 14 of section 26.1-10-04, in the case of an agreement involving a third-party consultant, provide for notification of the identity of the consultant to the applicable insurer.
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20 25.8125.01000 Sixty-ninth Legislative Assembly c.
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21B. 25.8125.01000
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1124 - PAGE 14 ____________________________ ____________________________ Speaker of the House President of the Senate ____________________________ ____________________________ Chief Clerk of the House Secretary of the Senate This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative Assembly of North Dakota and is known on the records of that body as House Bill No.
1124.
House Vote:
Yeas 93 Nays 0 Absent 1 Senate Vote:
Yeas 46 Nays 1 Absent 0 ____________________________ Chief Clerk of the House Received by the Governor at ________M.
on _____________________________________, 2025.
Approved at ________M.
on __________________________________________________, 2025.
____________________________ Governor Filed in this office this ___________day of _______________________________________, 2025, at ________ o’clock ________M.
____________________________ Secretary of State
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View plain text versions (2)
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Action History
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Filed with Secretary Of State 03/18
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Signed by Governor 03/17
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Sent to Governor
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Signed by Speaker
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Signed by President
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Returned to House
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Second reading, passed, yeas 46 nays 1
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Reported back, do pass, place on calendar 5 0 0
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Committee Hearing 09:00
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Introduced, first reading, referred Industry and Business Committee
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Received from House
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Second reading, passed, yeas 93 nays 0
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Reported back, do pass, place on calendar 12 0 2
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Committee Hearing 09:00
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Introduced, first reading, referred Industry, Business and Labor Committee
Sponsors
- Business and Labor House Industry · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 147 not signed on · 1 voted No
Sponsors (1)
- House Industry, Business and Labor
Co-sponsors (0)
None.
Not signed on (147)
147 members have not signed on to this bill.
Show all 147 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 1 | 0 | 0 | 0 |
| Republican | 40 | 1 | 0 | 0 |
| Democratic | 5 | 0 | 0 | 0 |
| Total | 46 | 1 | 0 | 0 |
| % of votes cast | 98% | 2% | 0% | 0% |
How each member voted (47)
| Member | Party | Vote |
|---|---|---|
| van Oosting | — | Yea |
| Boschee, Josh | Democratic | Yea |
| Braunberger, Ryan | Democratic | Yea |
| Hogan, Kathy | Democratic | Yea |
| Marcellais, Richard | Democratic | Yea |
| Mathern, Tim | Democratic | Yea |
| Axtman, Michelle | Republican | Yea |
| Barta, Jeff | Republican | Yea |
| Beard, Todd | Republican | Yea |
| Bekkedahl, Brad | Republican | Yea |
| Boehm, Keith | Republican | Yea |
| Burckhard, Randy A. | Republican | Yea |
| Castaneda, Jose L. | Republican | Yea |
| Cleary, Sean | Republican | Yea |
| Clemens, David A. | Republican | Yea |
| Conley, Cole | Republican | Yea |
| Cory, Claire | Republican | Yea |
| Davison, Kyle | Republican | Yea |
| Dever, Dick | Republican | Yea |
| Dwyer, Michael | Republican | Yea |
| Enget, Mark | Republican | Yea |
| Erbele, Robert | Republican | Yea |
| Gerhardt, Justin | Republican | Yea |
| Hogue, David | Republican | Yea |
| Kessel, Greg | Republican | Yea |
| Klein, Jerry | Republican | Yea |
| Larson, Diane | Republican | Yea |
| Lee, Judy | Republican | Yea |
| Lemm, Randy D. | Republican | Yea |
| Luick, Larry | Republican | Yea |
| Magrum, Jeffery J. | Republican | Nay |
| Meyer, Scott | Republican | Yea |
| Myrdal, Janne | Republican | Yea |
| Patten, Dale | Republican | Yea |
| Paulson, Bob | Republican | Yea |
| Powers, Michelle | Republican | Yea |
| Roers, Kristin | Republican | Yea |
| Rummel, Dean | Republican | Yea |
| Schaible, Donald | Republican | Yea |
| Sickler, Jonathan | Republican | Yea |
| Sorvaag, Ronald | Republican | Yea |
| Thomas, Paul J. | Republican | Yea |
| Walen, Chuck | Republican | Yea |
| Wanzek, Terry M. | Republican | Yea |
| Weber, Mark F. | Republican | Yea |
| Weston, Kent | Republican | Yea |
| Wobbema, Mike | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 82 | 0 | 0 | 0 |
| Democratic | 11 | 0 | 0 | 0 |
| Unaffiliated | 0 | 0 | 0 | 1 |
| Total | 93 | 0 | 0 | 1 |
| % of votes cast | 99% | 0% | 0% | 1% |
How each member voted (94)
| Member | Party | Vote |
|---|---|---|
| Olson | — | Not Voting |
| Brown, Collette | Democratic | Yea |
| Conmy, Liz | Democratic | Yea |
| Davis, Jayme | Democratic | Yea |
| Dobervich, Gretchen | Democratic | Yea |
| Finley-DeVille, Lisa | Democratic | Yea |
| Foss, Austin | Democratic | Yea |
| Hager, LaurieBeth | Democratic | Yea |
| Hanson, Karla Rose | Democratic | Yea |
| Ista, Zachary | Democratic | Yea |
| Mitskog, Alisa | Democratic | Yea |
| Schneider, Mary | Democratic | Yea |
| Anderson, Bert | Republican | Yea |
| Anderson, Dick | Republican | Yea |
| Anderson, Karen A. | Republican | Yea |
| Bahl, Landon | Republican | Yea |
| Beltz, Mike | Republican | Yea |
| Berg, Mike | Republican | Yea |
| Bolinske, Macy | Republican | Yea |
| Bosch, Glenn | Republican | Yea |
| Brandenburg, Mike | Republican | Yea |
| Christianson, Nels | Republican | Yea |
| Christy, Josh | Republican | Yea |
| Dockter, Jason | Republican | Yea |
| Dressler, Ty | Republican | Yea |
| Fegley, Clayton | Republican | Yea |
| Fisher, Jay | Republican | Yea |
| Frelich, Kathy | Republican | Yea |
| Grindberg, Karen | Republican | Yea |
| Grueneich, Jim | Republican | Yea |
| Hagert, Jared C. | Republican | Yea |
| Hatlestad, Patrick R. | Republican | Yea |
| Hauck, Dori | Republican | Yea |
| Headland, Craig | Republican | Yea |
| Heilman, Matthew | Republican | Yea |
| Heinert, Pat D. | Republican | Yea |
| Henderson, Donna | Republican | Yea |
| Hendrix, Jared | Republican | Yea |
| Holle, Dawson | Republican | Yea |
| Hoverson, Jeff | Republican | Yea |
| Johnson, Jorin | Republican | Yea |
| Johnston, Daniel | Republican | Yea |
| Jonas, Jim | Republican | Yea |
| Karls, Karen | Republican | Yea |
| Kasper, Jim | Republican | Yea |
| Kempenich, Keith | Republican | Yea |
| Kiefert, Dwight | Republican | Yea |
| Klemin, Lawrence R. | Republican | Yea |
| Koppelman, Ben | Republican | Yea |
| Lefor, Mike | Republican | Yea |
| Longmuir, Donald W. | Republican | Yea |
| Louser, Scott | Republican | Yea |
| Maki, Roger A. | Republican | Yea |
| Marschall, Andrew | Republican | Yea |
| Martinson, Bob | Republican | Yea |
| McLeod, Carrie | Republican | Yea |
| Meier, Lisa | Republican | Yea |
| Monson, David | Republican | Yea |
| Morton, Desiree | Republican | Yea |
| Motschenbacher, Mike | Republican | Yea |
| Murphy, Eric J. | Republican | Yea |
| Nathe, Mike | Republican | Yea |
| Nehring, Dennis | Republican | Yea |
| Nelson, Jon O. | Republican | Yea |
| Novak, Anna S. | Republican | Yea |
| O'Brien, Emily | Republican | Yea |
| Olson, Jeremy | Republican | Yea |
| Osowski, Doug | Republican | Yea |
| Ostlie, Mitch | Republican | Yea |
| Porter, Todd | Republican | Yea |
| Pyle, Brandy L. | Republican | Yea |
| Richter, David | Republican | Yea |
| Rios, Nico | Republican | Yea |
| Rohr, Karen M. | Republican | Yea |
| Ruby, Dan | Republican | Yea |
| Ruby, Matthew | Republican | Yea |
| Sanford, Mark | Republican | Yea |
| Satrom, Bernie | Republican | Yea |
| Schatz, Mike | Republican | Yea |
| Schauer, Austen | Republican | Yea |
| Schreiber-Beck, Cynthia | Republican | Yea |
| Steiner, Vicky | Republican | Yea |
| Stemen, Gregory | Republican | Yea |
| Swiontek, Steve | Republican | Yea |
| Toman, Nathan | Republican | Yea |
| Tveit, Bill | Republican | Yea |
| VanWinkle, Lori | Republican | Yea |
| Vetter, Steve | Republican | Yea |
| Vigesaa, Don | Republican | Yea |
| Vollmer, Daniel R. | Republican | Yea |
| Wagner, Scott | Republican | Yea |
| Warrey, Jonathan | Republican | Yea |
| Weisz, Robin | Republican | Yea |
| Wolff, Christina | Republican | Yea |
Subjects
Frequently asked questions
- What does HB 1124 do?
- AN ACT to amend and reenact sections 26.1-10-01, 26.1-10-04, 26.1-10-05, and 26.1-10-07 of the North Dakota Century Code, relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
- Who sponsors HB 1124?
- HB 1124 is sponsored by House Industry, Business and Labor.
- What is the current status of HB 1124?
- This bill has been enacted into law. Introduced January 07, 2025. Enacted.
- Where can I track HB 1124?
- Track HB 1124 free on One Click Politics — get push/email alerts when it moves.
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