North Dakota Century Code Chapter 26.1-04 governs the licensing of insurance producers. Specifically, Section 26.1-04-18 addresses the grounds for denial, suspension, or revocation of a license. This statute outlines various reasons why the Commissioner of Insurance might take such action against an individual or entity holding an insurance producer license. These grounds are designed to ensure that only trustworthy and competent individuals are involved in the sale of insurance products, thereby protecting North Dakota consumers. Common reasons include providing incorrect information on an application, violating insurance laws, engaging in fraudulent practices, or demonstrating incompetence. The Commissioner has the authority to investigate alleged violations and, after providing due notice and an opportunity for a hearing, can impose disciplinary actions. The statute emphasizes the Commissioner’s duty to protect the public interest through the regulation of insurance producers. Therefore, a producer who knowingly misrepresents material facts on their license application in North Dakota is subject to disciplinary action under these provisions.

North Dakota Century Code Chapter 26.1-02, specifically regarding the appointment and powers of the Commissioner of Insurance, outlines the regulatory framework for the insurance industry within the state. The Commissioner is empowered to investigate the business affairs of any person engaged in the business of insurance in North Dakota. This authority extends to examining books, records, and other documents to ensure compliance with state insurance laws and regulations. The purpose of these examinations is to protect policyholders and the public by verifying the solvency and lawful conduct of insurers. The Commissioner can subpoena witnesses and compel the production of evidence relevant to these investigations. Failure to cooperate or obstruction of an examination can lead to penalties, including fines and license revocation. The scope of these powers is broad, allowing for a thorough review of an insurer’s operations to safeguard the integrity of the insurance market in North Dakota. This includes verifying that all insurance activities are conducted in accordance with the statutes and rules established by the state legislature and the Commissioner’s office. The Commissioner’s role is crucial in maintaining a stable and trustworthy insurance environment.

In North Dakota, an insurance producer who has been convicted of a felony or a crime involving moral turpitude must report this conviction to the Commissioner of Insurance within a specified timeframe. North Dakota Century Code (NDCC) Section 26.1-20-12.1 outlines the reporting requirements for such convictions. The law mandates that any producer must report any criminal conviction, specifically a felony or a misdemeanor involving dishonesty or breach of trust, to the Commissioner within thirty days of the date of sentencing. This reporting is crucial for maintaining the integrity of the insurance marketplace and ensuring that licensed individuals meet the character and trustworthiness standards required by the state. Failure to report such a conviction can lead to disciplinary actions, including license suspension or revocation. The intent of this regulation is to provide the Commissioner with timely information to assess the suitability of individuals holding or seeking an insurance producer license in North Dakota, thereby protecting consumers.

North Dakota Century Code Section 26.1-02-09 defines an insurance producer as a person required to be licensed under the laws of North Dakota to sell, solicit, or negotiate insurance. Section 26.1-02-10 outlines the qualifications for an insurance producer, requiring them to be at least eighteen years of age, not have committed any act that is a ground for denial, suspension, or revocation of a license, have completed pre-licensing education, and have passed the examination. The core of the question revolves around the statutory definition and the associated requirements for an individual to legally engage in the business of insurance within North Dakota. The scenario presented describes an individual who is actively performing these functions without holding the requisite license. This directly contravenes the licensing requirements established by North Dakota law for anyone acting as an insurance producer. Therefore, the individual’s actions constitute acting as an unlicensed insurance producer, a violation of the state’s insurance statutes. The North Dakota Insurance Department is responsible for enforcing these laws and would take action against such unlicensed activity to protect consumers. The penalty for such violations is typically a fine, and potentially other administrative actions, as outlined in North Dakota Century Code Chapter 26.1-02.

In North Dakota, the Guaranty Association is a mechanism designed to protect policyholders, claimants, and beneficiaries of insurance policies when an insurer becomes insolvent. The North Dakota Insurance Guaranty Association Act, specifically under North Dakota Century Code (NDCC) Chapter 26.1-35, outlines the scope of coverage and limitations. The Act specifies that the association provides coverage for covered claims against an insolvent insurer, subject to certain limits. For life and health insurance, the maximum benefit for any one life is generally $300,000 for life insurance death benefits, $100,000 for the present value of annuity contracts, and $100,000 for health insurance benefits, with a combined maximum of $300,000 per life. For property and casualty insurance, the limit is typically $300,000 per claimant for all claims arising from a single loss, or the applicable policy limit, whichever is less, with specific exceptions for workers’ compensation benefits which are covered in full. The question asks about the maximum aggregate payout for a single claimant across all types of covered policies from a single insolvent insurer. The Act establishes a per-life limit for life and health policies, and a per-claimant limit for property and casualty. When considering the aggregate for a single claimant who might have multiple types of coverage from the same insolvent insurer, the association’s liability is capped at the statutory limits for each category of insurance, but the overall protection for a single individual is not an unlimited sum of all possible policy types. The question, however, focuses on the maximum *aggregate* payout for a single claimant. The North Dakota Century Code 26.1-35-11 details these limits. For life insurance, it’s $300,000 for death benefits and $100,000 for annuity present values. For health insurance, it’s $100,000. For property and casualty, it’s $300,000 per claimant for all claims arising out of a single loss. The Act aims to provide a safety net, not to make policyholders whole beyond these specified limits. Therefore, the maximum aggregate payout for a single claimant, considering the most generous applicable limit across different policy types from the same insolvent insurer, would be the highest per-claimant limit established by the statute, which is $300,000 for property and casualty claims or life insurance death benefits. The question is phrased to test the understanding of the overall cap for an individual, not the sum of individual policy limits if they exceed the per-claimant or per-life caps. Thus, the most accurate answer reflecting the highest single limit applicable to a claimant is $300,000.

In North Dakota, the Superintendent of Insurance is empowered to investigate any person believed to be transacting insurance business without a license. This authority is rooted in North Dakota Century Code (NDCC) Section 43-03-08, which grants the Superintendent broad investigative powers to ensure compliance with insurance laws and protect consumers. When the Superintendent has reason to believe an unlicensed entity is engaging in such activities, they may issue a cease and desist order. This order is a formal directive to stop the alleged illegal activity. Following the issuance of such an order, NDCC Section 26.1-01-10 outlines the process for administrative hearings. If, after notice and a hearing, the Superintendent finds that the person has indeed been transacting insurance without a license, they may impose penalties. These penalties can include fines, which are stipulated in NDCC Section 26.1-01-05. The Superintendent’s actions are aimed at preventing harm to the public by ensuring that only licensed and regulated entities conduct insurance business within the state. The process is designed to be fair, allowing the investigated party an opportunity to respond to the allegations.

North Dakota Century Code Section 26.1-03-17 defines unfair discrimination in insurance, specifically prohibiting the practice of rebating or offering any inducements not specified in the policy. Rebating involves offering something of value, such as cash, gifts, or future favors, to a prospective policyholder as an incentive to purchase insurance, when this benefit is not extended to all policyholders in the same class. This practice undermines the principle of equitable treatment among policyholders and can distort the competitive landscape by allowing agents to offer personal advantages rather than relying on the merits of the insurance product itself. Unfair discrimination also extends to practices that unfairly prejudice individuals based on protected characteristics, but in the context of rebating, it specifically addresses financial inducements outside the policy contract. The North Dakota Insurance Department enforces these provisions to maintain market integrity and consumer protection. The scenario describes an agent offering a valuable service, a free financial planning consultation, to a prospective client as a direct incentive to purchase a life insurance policy. This service is not part of the policy’s benefits and is offered exclusively to secure the sale, making it a clear violation of the rebating prohibition under North Dakota law.

North Dakota Century Code Chapter 26.1-04 governs the licensing of insurance producers. Specifically, Section 26.1-04-18 outlines the requirements for continuing education. Licensed insurance producers are mandated to complete a certain number of continuing education hours during each two-year licensing period. For producers licensed in North Dakota, this requirement is 24 hours of approved continuing education, with at least 3 of those hours needing to be dedicated to ethics. Failure to meet these requirements can lead to disciplinary action, including the suspension or revocation of the producer’s license. The purpose of continuing education is to ensure that insurance professionals maintain current knowledge of insurance laws, regulations, and practices, thereby protecting consumers. The state of North Dakota, through its Insurance Department, is responsible for approving continuing education courses to ensure they meet the specified standards and contribute to the licensee’s professional development and understanding of insurance principles and consumer protection.

In North Dakota, the definition of “transacting insurance” is broad and encompasses various activities beyond simply issuing a policy. According to North Dakota Century Code (NDCC) Section 43-01-01, transacting insurance includes soliciting, proposing, issuing, delivering, or receiving any premium for any contract of insurance. It also covers any other act that is part of the business of insurance. For an entity to be considered acting as an insurer, it must engage in these activities within the state of North Dakota. The question presents a scenario where a company, based in Minnesota, solicits insurance contracts from North Dakota residents via its website and accepts premium payments electronically. This direct solicitation and acceptance of premiums within North Dakota, regardless of the company’s physical location or the method of communication (website), constitutes transacting insurance in North Dakota. Therefore, the company is subject to North Dakota’s insurance laws and regulations, including licensing requirements, even if it does not have a physical presence in the state. This principle ensures that residents of North Dakota are protected by the state’s consumer protection laws and regulatory oversight for all insurance transactions affecting them. The key is the situs of the transaction and the impact on North Dakota residents.

The scenario describes a situation where an insurance producer, acting as a third-party administrator for a self-funded employee welfare benefit plan established by a North Dakota employer, is engaging in activities that require specific licensing and adherence to North Dakota insurance laws. North Dakota Century Code (NDCC) Section 26.1-20-01 defines an insurance producer as a person required to be licensed under the laws of North Dakota to sell, solicit, or negotiate insurance. A third-party administrator (TPA) is an entity that collects premiums, adjusts or settles claims, or pays benefits for an insurance company or for a self-funded plan. While self-funded plans are generally exempt from state insurance laws regarding the *plan itself*, the *administration* of such plans, particularly by entities that are not the employer directly, can fall under insurance producer licensing requirements if the TPA is performing activities that constitute soliciting, negotiating, or selling insurance-related services, or if they are handling funds in a manner that implicates insurance producer responsibilities. NDCC Section 26.1-20-03 specifies who is considered an insurance producer. If the TPA’s role involves more than mere administrative processing and extends to advising on or marketing the plan’s benefits in a way that resembles selling insurance products, or if they are acting as an intermediary in a way that could be construed as negotiating for insurance-related services, then a license would be necessary. Given the context of collecting premiums and managing claims for a self-funded plan, and the potential for the TPA to interact with employees regarding benefit options or enrollment, the most prudent interpretation under North Dakota law is that such an administrator would need to be licensed as an insurance producer to ensure compliance with the state’s regulatory framework for individuals and entities involved in the insurance business, even if indirectly. The North Dakota Insurance Department has purview over entities conducting insurance business within the state, and the licensing of TPAs often hinges on the specific services they provide and their relationship with the plan participants.

North Dakota Century Code (NDCC) Chapter 26.1-03 outlines the requirements for the appointment and licensing of insurance producers. Specifically, NDCC 26.1-03-17 addresses the grounds for denial, suspension, or revocation of a license. An insurer or producer can have their license action taken if they have provided materially incorrect, misleading, incomplete, or untrue information in the application for a license or in any other statement filed with the commissioner. This statute emphasizes the importance of honesty and accuracy in all dealings with the North Dakota Insurance Commissioner. The commissioner has the authority to investigate any producer or insurer suspected of violating these provisions. If a violation is found, the commissioner can impose penalties such as fines, license suspension, or revocation, depending on the severity and nature of the offense. The intent is to protect the public by ensuring that only qualified and trustworthy individuals and entities are licensed to conduct insurance business within the state. This is a cornerstone of regulatory oversight to maintain the integrity of the insurance market.

The scenario involves an insurance producer, Ms. Anya Sharma, who is licensed in North Dakota. She is also licensed in South Dakota and is acting as a nonresident producer in that state. The question pertains to the permissible scope of her activities concerning an insurance policy for a North Dakota resident. North Dakota Century Code (NDCC) § 26.1-26-16 outlines the requirements for an insurance producer to solicit, negotiate, or sell insurance in the state. Specifically, it states that a person shall not act as an insurance producer without a license issued by the commissioner. For a nonresident producer, their home state license is recognized, provided that state grants similar privileges to North Dakota producers. However, the core of the question is about where the *solicitation* can occur. NDCC § 26.1-26-01 defines “solicit” as attempting to sell insurance or to introduce a systematic plan of insurance. If Ms. Sharma, while physically present in North Dakota, solicits a North Dakota resident for a policy that she is authorized to sell in South Dakota, she is engaging in insurance business within North Dakota. Even though the policy might be issued by an insurer authorized in North Dakota, her actions of solicitation within North Dakota require a North Dakota producer license. A nonresident producer can only transact business in North Dakota if they are licensed as a nonresident producer in North Dakota. Therefore, soliciting a North Dakota resident within North Dakota, even if the producer is licensed in another state and the resident is also a resident of that other state, requires a North Dakota license. The fact that the policy is for a North Dakota resident is key. If she were soliciting a South Dakota resident while physically in North Dakota, that would be a different scenario governed by the laws of South Dakota and North Dakota’s extraterritorial application of its laws. However, soliciting a North Dakota resident within North Dakota’s borders necessitates compliance with North Dakota’s licensing requirements for producers.

North Dakota Century Code (NDCC) § 26.1-04-11 governs the examination of insurers. This statute mandates that the Commissioner of Insurance shall examine each domestic insurer at least once every five years. The examination is to ascertain the financial condition of the insurer, its ability to fulfill its obligations, and its compliance with all applicable laws and regulations. The examination may be conducted by the Commissioner’s own staff or by an independent auditor appointed by the Commissioner. The costs of such examinations are generally borne by the insurer being examined, as stipulated in NDCC § 26.1-04-13. This principle ensures that regulatory oversight is funded without burdening taxpayers or the general insurance fund. The frequency of examinations is a critical aspect of solvency monitoring, aiming to detect potential financial distress before it jeopardizes policyholder security. The scope of these examinations is broad, encompassing financial statements, underwriting practices, claims handling, and corporate governance. The intent is to provide a comprehensive assessment of the insurer’s operational integrity and financial stability within the state of North Dakota.

North Dakota Century Code Section 26.1-04-16 governs the examination of insurers. This statute mandates that the Commissioner of Insurance shall examine each insurer authorized to do business in North Dakota at least once every five years. The examination is to ascertain the insurer’s financial condition, methods of doing business, and compliance with all applicable laws and regulations. The examination is conducted by the Commissioner or a deputy, examiner, or other authorized representative. The expenses incurred during such examinations, including the salaries of examiners, are to be paid by the insurer being examined, as detailed in Section 26.1-04-17. This payment is not considered a fine or penalty but a necessary cost of regulatory oversight to ensure the solvency and lawful operation of insurance companies within the state, thereby protecting North Dakota policyholders. The frequency and scope of these examinations are crucial for maintaining market integrity and public trust in the insurance industry.

The scenario describes an insurance producer, Ms. Anya Sharma, who is licensed in North Dakota and also holds licenses in several other states. She is found to have engaged in unfair or deceptive practices in her dealings with a client in Minnesota. North Dakota Century Code (NDCC) Chapter 26.1-25 governs unfair trade practices and prohibits such conduct. Specifically, NDCC 26.1-25-03 defines and prohibits various unfair methods of competition and unfair or deceptive acts or practices in the business of insurance. This includes misrepresenting material facts or policy provisions, making false or misleading statements, and engaging in fraudulent activities. When a North Dakota-licensed producer commits such acts, even if outside the state, North Dakota’s regulatory authority can be invoked, particularly if the producer’s actions have a nexus to North Dakota, such as the producer being domiciled or primarily operating there, or if the conduct reflects poorly on the producer’s fitness to hold a license in North Dakota. The Commissioner of Insurance has the authority under NDCC 26.1-25-04 to investigate and take disciplinary action against a producer for violations of the unfair trade practices act. This action can include imposing fines, suspending or revoking the producer’s license, or issuing a cease and desist order. The fact that the misconduct occurred in Minnesota does not shield the producer from North Dakota’s disciplinary powers, as the licensing authority in North Dakota has an interest in ensuring its licensees adhere to ethical and legal standards across all their professional activities. Therefore, the Commissioner of Insurance in North Dakota can initiate disciplinary proceedings based on the findings of misconduct in Minnesota.

The scenario describes a situation where an insurance producer, acting as a fiduciary, is entrusted with premium funds. In North Dakota, like many states, insurance producers are required to handle premium funds in a specific manner to protect consumers and ensure the financial integrity of the insurance transaction. North Dakota Century Code Section 26.1-26-16 outlines the requirements for handling premium funds. Specifically, it mandates that premium funds received by an insurance producer must be held in a fiduciary capacity. This means the producer must keep these funds separate from their personal or business operating funds. The law generally requires these funds to be deposited into a designated fiduciary bank account, often referred to as a premium trust account. This account is solely for holding client funds and not for the producer’s general business expenses. Failure to maintain proper segregation and handling of these funds constitutes a serious violation of fiduciary duty and insurance law, potentially leading to disciplinary actions, including license suspension or revocation, and civil or criminal penalties. The explanation focuses on the legal requirement for segregation of premium funds into a trust account, which is a core principle of fiduciary responsibility for insurance producers in North Dakota.

The scenario describes a situation involving an agent’s fiduciary duty and the potential for misrepresentation or omission of material facts. In North Dakota, insurance producers are held to a high standard of conduct, particularly when dealing with consumers. North Dakota Century Code (NDCC) § 26.1-25-02 outlines the duties of an insurance producer, emphasizing that they must act in a fiduciary capacity. This means they are entrusted with the client’s interests and must act with utmost good faith. When an agent advises a client on policy suitability, they have an affirmative duty to investigate the client’s needs and recommend products that are appropriate. Failing to disclose material information that could influence a consumer’s decision, such as a known policy limitation or a more suitable alternative, constitutes a breach of this fiduciary duty and can be considered misrepresentation or omission under NDCC § 26.1-25-03 and NDCC § 26.1-25-04. The agent’s knowledge of the client’s specific health condition and the existence of a policy that might not adequately cover it, coupled with a failure to inform the client of these material facts or to explore better options, directly violates these principles. Therefore, the agent’s actions are subject to disciplinary action by the North Dakota Insurance Commissioner, which can include license suspension or revocation, fines, and other penalties as stipulated in NDCC Chapter 26.1-25. The core issue is the agent’s failure to act in the client’s best interest by not providing complete and accurate information regarding policy suitability, thereby breaching their fiduciary obligation.

The North Dakota Century Code, specifically Chapter 26.1-02, addresses the licensing of insurance producers. Section 26.1-02-17 outlines the requirements for maintaining an insurance producer license. This includes the necessity of completing continuing education (CE) requirements. For resident producers, the law mandates the completion of a specific number of hours of approved CE during each two-year licensing period. These hours must include specific topics related to ethics and other areas designated by the Commissioner. Failure to meet these CE requirements by the renewal deadline, without a valid extension or exemption granted by the Commissioner, results in the lapse of the license. A lapsed license means the producer is no longer authorized to transact insurance business in North Dakota. To reactivate a lapsed license, the producer must typically fulfill all delinquent CE requirements and may need to reapply, potentially facing additional fees or a waiting period as determined by the Commissioner. The scenario describes a producer who failed to complete the required CE hours by the renewal deadline, leading to the license status change.

In North Dakota, the process for an insurer to withdraw from the market or cease transacting business within the state is governed by specific statutes and regulations designed to protect policyholders and ensure an orderly transition. The primary governing statute is typically found within the North Dakota Century Code, specifically chapters related to insurance company rehabilitation, liquidation, and conservation. When an insurer intends to withdraw, it must first obtain approval from the Commissioner of Insurance. This approval process involves submitting a detailed plan for withdrawal, which must demonstrate how the insurer will fulfill its obligations to existing policyholders in North Dakota. This includes provisions for continuing coverage, managing claims, and ensuring that policyholders are not left without adequate protection. The law mandates that such plans must be fair and equitable to all parties involved, particularly the insureds. The Commissioner reviews the plan to ensure compliance with all state laws and to safeguard the interests of North Dakota residents. Failure to follow these procedures can result in penalties and sanctions. The core principle is the protection of the public interest, ensuring that policyholders are not adversely affected by an insurer’s market exit. This involves a thorough review of the insurer’s financial condition and its capacity to manage the withdrawal process responsibly.

North Dakota Century Code Chapter 26.1-04 outlines the requirements for continuing education for licensed insurance producers. Specifically, Section 26.1-04-17 mandates that licensed individuals must complete a minimum of twenty-four (24) hours of approved continuing education courses during each two-year license period. This continuing education must include at least three (3) hours in ethics. The purpose of these requirements is to ensure that insurance professionals maintain current knowledge of insurance laws, regulations, and ethical practices relevant to the state of North Dakota, thereby protecting consumers. Failure to meet these requirements can result in disciplinary action, including the suspension or revocation of the producer’s license. The continuing education must be relevant to the lines of insurance the producer is licensed to sell.

North Dakota Century Code Chapter 26.1-04 outlines the requirements for the examination and licensing of insurance producers. Specifically, Section 26.1-04-05 details the grounds for denial, suspension, or revocation of a license. This statute enumerates various actions that an individual may take which would render them ineligible for or subject to disciplinary action regarding their insurance producer license. These grounds include providing incorrect, misleading, incomplete, or untrue information in the license application, violating any insurance laws of North Dakota or any other state, engaging in fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or a bad financial reputation in the conduct of business. The statute further specifies that a license may be revoked if the applicant has had a previous license revoked for cause within five years of the current application. It also addresses situations where an applicant has been convicted of a felony or a crime involving moral turpitude, or has had a license denied, suspended, or revoked in another state for reasons that would be grounds for denial, suspension, or revocation in North Dakota. The examination process itself is a prerequisite, and the grounds for disciplinary action are broad, encompassing both technical violations of insurance law and character-related issues that impact an individual’s suitability to hold a license.

North Dakota law, specifically under Chapter 26.1-04 of the North Dakota Century Code, governs the licensing and regulation of insurance producers. A producer’s license is considered inactive if they have not reported continuing education credits or paid renewal fees for a period of time, or if they have failed to notify the commissioner of a change in business address or other material information. The commissioner has the authority to place a license on inactive status under certain conditions, such as upon request by the licensee or due to non-compliance with continuing education requirements. Once a license is inactive, the producer cannot engage in any insurance transactions in North Dakota. To reactivate an inactive license, the producer must meet specific requirements, which typically include completing any outstanding continuing education, paying renewal fees, and potentially passing a portion of the licensing examination again, depending on the duration of inactivity. The law aims to ensure that insurance producers remain knowledgeable and compliant with current regulations and market practices. The period for reactivation and the specific requirements are detailed within the statutes and administrative rules.

In North Dakota, the Superintendent of Insurance is empowered to conduct examinations of insurers to ensure compliance with state laws and regulations. These examinations are crucial for maintaining the solvency and integrity of the insurance market. The authority for these examinations is primarily derived from North Dakota Century Code (NDCC) Chapter 26.1-02, specifically concerning the examination of insurers. NDCC § 26.1-02-01 grants the Superintendent the power to examine any insurer authorized to do business in North Dakota. The purpose of these examinations is to ascertain the financial condition of the insurer, its compliance with all applicable statutes, and its general business practices. The frequency of examinations is generally determined by the Superintendent based on risk assessment, but typically occurs at least once every five years for domestic insurers. The examination process involves reviewing financial statements, business records, and operational procedures. The examiner’s report, once completed, is provided to the insurer for review and response before being finalized and made public. This process ensures transparency and accountability within the insurance industry, protecting policyholders and the public interest. The examination process is a cornerstone of regulatory oversight in North Dakota’s insurance landscape, ensuring that insurers operate soundly and ethically.

North Dakota law, specifically within the context of insurance, addresses the concept of rebating. Rebating, in its essence, refers to offering something of value to an applicant for insurance or an existing policyholder that is not specified in the insurance contract itself. This practice is generally prohibited because it can lead to unfair discrimination among policyholders and can undermine the integrity of the insurance market by inducing business through means other than the merits of the policy and the services provided. North Dakota Century Code Section 26.1-04-16 defines and prohibits rebating, stipulating that no insurer or its agent shall offer any valuable consideration or inducement not specified in the policy as an inducement to purchase insurance. This includes offering rebates of premiums, special favors, advantages, or any other valuable consideration. The purpose of this prohibition is to ensure that all policyholders are treated equitably and that premiums accurately reflect the risk being insured, without being artificially lowered or influenced by inducements outside the policy contract. Understanding this prohibition is crucial for agents to maintain compliance and uphold ethical standards in their dealings with prospective and current clients in North Dakota.

North Dakota law, specifically under Chapter 26.1-04 of the Century Code, addresses the licensing and conduct of insurance producers. A producer must maintain a resident license in North Dakota to transact insurance business within the state. If a producer moves their primary residence to another state, they are generally required to notify the North Dakota Commissioner of Insurance within a specified timeframe, typically 30 days, and may need to apply for a non-resident license in North Dakota if they intend to continue soliciting or negotiating insurance in the state. Failure to comply with these residency and notification requirements can lead to disciplinary action, including license suspension or revocation. The law emphasizes that a producer’s license is tied to their home state of residence for resident licensing purposes. Therefore, when a producer establishes residency in another state, their North Dakota resident license status is affected, necessitating a change to a non-resident status if continued business in North Dakota is desired. The question tests the understanding of how a change in residency impacts an existing insurance producer’s license in North Dakota, focusing on the legal obligation to update status and potentially obtain a non-resident license.

North Dakota Century Code Section 26.1-04-03 addresses the licensing of business entities as insurance producers. This statute specifies that any business entity, including corporations, partnerships, limited liability companies, or other legal entities, that solicits, negotiates, or sells insurance in North Dakota must be licensed as an insurance producer. The license is issued to the business entity itself, not to individual employees or representatives, although individuals acting on behalf of the entity must also be licensed and identified with the business entity’s license. The business entity must designate at least one licensed individual producer who will be responsible for the entity’s compliance with insurance laws and regulations. This designated individual acts as the primary contact and supervisor for the entity’s insurance activities. The purpose of this requirement is to ensure that there is accountability and oversight for the insurance business conducted by the entity, thereby protecting consumers and maintaining the integrity of the insurance market in North Dakota. The licensing process for a business entity involves an application, payment of fees, and demonstration of the entity’s legal standing and the qualifications of its designated responsible producer.

North Dakota Century Code (NDCC) Chapter 26.1-04 governs the licensing of insurance producers. Specifically, NDCC 26.1-04-18 outlines the grounds for denial, suspension, or revocation of a license. This section details various actions that constitute grounds for disciplinary action, including providing incorrect, misleading, incomplete, or untrue information in a license application or renewal, violating any insurance laws of North Dakota or any other state, engaging in fraudulent, coercive, or dishonest practices, or demonstrating incompetence or untrustworthiness to transact the insurance business. The question focuses on a scenario where a producer knowingly submits false information on a license application. This directly aligns with the provisions of NDCC 26.1-04-18, which explicitly lists the submission of false information as a basis for license revocation. The director of insurance has the authority to take such action when these grounds are met. Therefore, the director of insurance would have the authority to revoke the producer’s license.

North Dakota law, specifically under Chapter 26.1-04 of the North Dakota Century Code, governs the licensing of insurance producers. A producer must maintain a license to solicit, negotiate, or effect insurance contracts. If a producer’s license lapses, they are generally prohibited from conducting any insurance business in North Dakota. Upon discovering a lapse, the producer must apply for reinstatement. The North Dakota Insurance Commissioner has the authority to grant or deny such applications. A key consideration for reinstatement is the period of the lapse. If the lapse is for a period exceeding a certain threshold, typically two years, the producer may be required to re-take the licensing examination and meet all initial licensing requirements again. This is to ensure that the producer’s knowledge of insurance laws and practices remains current. The statute aims to protect consumers by ensuring that only qualified and knowledgeable individuals are licensed to sell insurance. Therefore, a producer whose license has lapsed for more than two years must reapply and re-qualify as if they were a new applicant, including passing the required examinations.

North Dakota law, specifically within the context of insurance, outlines stringent requirements for the appointment and termination of insurance producers. When an insurer terminates the appointment of a producer, it is obligated to notify the North Dakota Insurance Commissioner within thirty days of the termination. This notification is crucial for maintaining regulatory oversight and ensuring that producers who have had their appointments terminated are not engaging in unauthorized insurance activities. The reason for termination, even if it is for cause, must be communicated to the Commissioner. This reporting requirement serves as a mechanism for the Commissioner to track producer conduct and take appropriate actions if necessary, such as suspending or revoking a producer’s license. Furthermore, the law mandates that the insurer also provide a copy of this notification to the producer, allowing them to understand the basis for the termination and potentially respond to the allegations. This dual notification process is designed to promote transparency and fairness in the producer-insurer relationship while upholding the integrity of the insurance marketplace in North Dakota.

North Dakota Century Code Section 26.1-02-10 outlines the requirements for an insurer to withdraw from the state. An insurer intending to cease all operations in North Dakota must file a notice of withdrawal with the Commissioner of Insurance at least 90 days prior to the effective date of withdrawal. This notice must include a detailed plan for the orderly cessation of business, including provisions for policyholder protection, claims handling, and the disposition of assets and liabilities within the state. The Commissioner then reviews this plan to ensure it adequately protects the interests of North Dakota policyholders and creditors. Failure to comply with these notice and planning requirements can result in penalties and sanctions. The law emphasizes a structured and transparent process to safeguard the state’s insurance consumers during such a significant corporate action.