§ 26.1-06.1-01 — Construction and purpose

North Dakota § 26.1-06.1-01

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-06.1: Insurance Company Rehabilitation and Liquidation

Text

1. This chapter may not be interpreted to limit the powers granted the commissioner by
other provisions of the law.
2. This chapter must be liberally construed to effect the purpose stated in subsection 3.
3. The purpose of this chapter is the protection of the interests of insureds, claimants,
creditors, and the public generally; with minimum interference with the normal
prerogatives of the owners and managers of insurers, through:
a. Early detection of any potentially dangerous condition in an insurer, and prompt
application of appropriate corrective measures;
b. Improved methods for rehabilitating insurers, involving the cooperation and
management expertise of the insurance industry;
c. Enhanced efficiency and economy of liquidation, through clarification of the law,
to minimize legal uncertainty and litigation;
d. Equitable apportionment of any unavoidable loss;
e. Lessening the problems of interstate rehabilitation and liquidation by facilitating
cooperation between states in the liquidation process, and by extending the
scope of personal jurisdiction over debtors of the insurer outside this state;
f. Regulation of the insurance business by the impact of the law relating to
delinquency procedures and substantive rules on the entire insurance business;
and
g. Providing for a comprehensive scheme for the rehabilitation and liquidation of
insurance companies and those subject to this chapter as part of the regulation of
the business of insurance, insurance industry, and insurers in this state.
Proceedings in cases of insurer insolvency and delinquency are deemed an
integral aspect of the business of insurance and are of vital public interest and
concern.