§ 26.1-06.1-32 — Recovery of premiums owed

North Dakota § 26.1-06.1-32

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

Text

1. a. An insurance producer, premium finance company, or any other person, other
than the insured, responsible for the payment of a premium is obligated to pay
any unpaid premium for the full policy term due the insurer at the time of the
declaration of insolvency, whether earned or unearned, as shown on the records
of the insurer. The liquidator shall also have the right to recover from such person
any part of an unearned premium that represents commission of such person.
Credits or setoffs, or both, may not be allowed to an insurance producer or
premium finance company for any amounts advanced to the insurer by the
insurance producer or premium finance company on behalf of, but in the absence
of a payment by, the insured.
b. An insured is obligated to pay any unpaid earned premium due the insurer at the
time of the declaration of insolvency, as shown on the records of the insurer.
2. Upon satisfactory evidence of a violation of this section, the commissioner may pursue
either one or both of the following courses of action:
a. Suspend or revoke or refuse to renew the licenses of such offending party or
parties.
b. Impose a penalty of not more than one thousand dollars for each and every act in
violation of this section by said party or parties.
3. Before taking any action as set forth in subsection 2, the commissioner shall give
written notice to the person, company, association, or exchange accused of violating
the law, stating specifically the nature of the alleged violation and fixing a time and
place, at least ten days thereafter, when a hearing on the matter must be held. After
the hearing, or upon failure of the accused to appear at the hearing, if a violation is
found to have been made, the commissioner shall impose any of the penalties under
subsection 2 as deemed advisable.
4. When the commissioner takes action in any or all of the ways set out in subsection 2,
the party aggrieved may appeal from said action to the district court.