SB 2272 — A BILL for an Act to create and enact a new chapter to title 26.1 of the North Dakota Century Code, relating to the North Dakota insurance incentive program; to amend and reenact subsection 1 of section 21-10-06 and subsection 3 of section 26.1-01-07.1 of the North Dakota Century Code, relating to the insurance incentive fund; to provide a continuing appropriation; and to provide an exemption.

p.

Insurance incentive fund.

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A fund under contract with the board pursuant to subsection 3.

SECTION 2.

AMENDMENT.

Subsection 3 of section 26.1-01-07.1 of the North Dakota Century Code is amended and reenacted as follows:

3.

Except as otherwise provided by law, after the fiscal year has been closed and all expenses relating to the fiscal year have been accounted for, the office of management and budget shall transfer any fund balance remaining in the insurance regulatory trust fund that exceeds one million dollars to the general fundinsurance incentive fund.

SECTION 3.

12 25.1217.0100025.1217.02000 Sixty-ninth Legislative Assembly North Dakota insurance incentive fund - Continuing appropriation.

Except as otherwise provided by law, after the biennium has been closed and all expenses related to the previous biennium have been accounted for, the office of management and budget shall transfer any fund balance remaining in the insurance incentive fund that exceeds twenty million dollars to the general fund.

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If the amount requested in grant applications exceeds the amount of funds available, the Pagecommissioner No.may prioritize and allocate funds among insurers eligible to participate in the program, considering the financial strength of each insurer and the potential for the insurer's business plan to improve the availability and affordability of property insurance in this state.

2 25.1217.01000 Sixty-ninth Legislative Assembly commissioner may prioritize and allocate funds among insurers eligible to participate in the program, considering the financial strength of each insurer and the potential for the insurer's business plan to improve the availability and affordability of property insurance in this state.

To comply with this chapter, new property insurance written by an insurer that received a matching capital fund grant must be residential, commercial, monoline, or package property insurance policies in this state, and must include coverage for wind and hail withPage limitsNo. equal to the limits provided for other perils insured under such policies.

The4 net25.1217.02000 writtenSixty-ninth premiumLegislative requirementsAssembly mustwith belimits satisfiedequal onlyto bythe propertylimits insuranceprovided Pagefor No.other perils insured under such policies.

3The 25.1217.01000net Sixty-ninthwritten Legislativepremium Assemblyrequirements must be satisfied only by property insurance coverages reported on the annual statement filed with the commissioner, under certain lines, as prescribed by the commissioner.

An insurer awarded a matching capital fund grant under this chapter shall receive the grant funds in the amount of twenty percent of the total awarded amount per year, for eachPage yearNo. the insurer maintains the net written premiums in accordance with this chapter, for period not to exceed five years.

Page5 No.25.1217.02000 Sixty-ninth Legislative Assembly each year the insurer maintains the net written premiums in accordance with this chapter, for period not to exceed five years.

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SECTION 4.

EXEMPTION - INSURANCE PREMIUM TAX DEPOSITS.

Notwithstanding the provisions of subsection 1 of section 26.1-03-17 relating to the requirement to deposit excess insurance premium tax collections in the general fund, $20,000,000 of the insurance premium tax collections must be deposited by the insurance commissioner in the insurance incentive fund before any deposits in the general fund, during the biennium beginning July 1, 2025, and ending June 30, 2027.

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