§ 26.1-10.2-05 — Exemption

North Dakota § 26.1-10.2-05

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-10.2: Own Risk and Solvency Assessments

Text

1. An insurer is exempt from the requirements of this chapter if:
a. The insurer has annual direct written and unaffiliated assumed premium,
including international direct and assumed premium, but excluding premiums
reinsured with the federal crop insurance corporation and federal flood program,
less than five hundred million dollars; and
b. The insurance group of which the insurer is a member has annual direct written
and unaffiliated assumed premium, including international direct and assumed
premium, but excluding premiums reinsured with the federal crop insurance
corporation and federal flood program, less than one billion dollars.
2. If an insurer qualifies for exemption under subdivision a of subsection 1, but the
insurance group of which the insurer is a member does not qualify for exemption under
subdivision b of subsection 1, then the own risk and solvency assessment summary
report that may be required under section 26.1-10.2-04 must include every insurer
within the insurance group. This requirement may be satisfied by the submission of
more than one own risk and solvency assessment summary report for any
combination of insurers provided any combination of reports includes every insurer
within the insurance group.
3. If an insurer does not qualify for exemption under subdivision a of subsection 1, but
the insurance group of which the insurer is a member qualifies for exemption under
subdivision b of subsection 1, then the only own risk and solvency assessment
summary report that may be required under section 26.1-10.2-04 must be the report
applicable to that insurer.
4. An insurer that does not qualify for exemption under subsection 1 may apply to the
commissioner for a waiver from the requirements of this chapter based upon unique
circumstances. In deciding whether to grant the request for waiver, the commissioner
may consider the type and volume of business written, the ownership and
organizational structure of the insurer, and any other factor the commissioner
considers relevant to the insurer or insurance group of which the insurer is a member.
If the insurer is part of an insurance group with insurers domiciled in more than one
state, the commissioner shall coordinate with the lead state commissioner and with the
other domiciliary commissioners in considering whether to grant the insurer's request
for a waiver.
5. Notwithstanding the exemptions stated in this section:
a. The commissioner may require an insurer maintain a risk management
framework, conduct an own risk and solvency assessment, and file an own risk
and solvency assessment summary report based on unique circumstances,
including the type and volume of business written, the ownership and
organizational structure of the insurer, a federal agency request, or an
international supervisor request.
b. The commissioner may require an insurer maintain a risk management
framework, conduct an own risk and solvency assessment, and file an own risk
and solvency assessment summary report if the insurer has risk-based capital for
company action level event as set forth in section 26.1-03.1-03; meets one or
more of the standards of an insurer deemed to be in hazardous financial

condition as defined in section 26.1-06.1-11; or otherwise exhibits qualities of a
troubled insurer as determined by the commissioner.
6. If an insurer that qualifies for an exemption under subsection 1 subsequently no longer
qualifies for that exemption due to changes in premium as reflected in the insurer's
most recent annual statement or in the most recent annual statements of the insurers
within the insurance group of which the insurer is a member, the insurer has one year
following the year the threshold is exceeded to comply with the requirements of this
chapter.