§ 26.1-14-05 — Initial policyholders surplus - Tax - Membership fee

1. If physicians practicing medicine within North Dakota find it difficult to obtain medical
malpractice insurance, the North Dakota board of medicine, by a majority vote of its
membership, may elect to initiate and implement this chapter. Before fifteen days from
the date the election to implement this chapter is made, the board shall certify to the
state treasurer a list of all licensed physicians as shown in the latest record of the
board.
2. A special one-time tax for the privilege of practicing medicine in North Dakota will be
levied on licensed physicians listed by the state treasurer in accordance with
subsection 1 in the amount of five hundred dollars per licensed physician, to be levied,
assessed, and collected by the state treasurer. The tax does not apply to any
physician who submits a statement, sworn to under penalties of perjury, stating that
the physician has permanently terminated the practice of medicine in the state of North
Dakota. The state treasurer shall prescribe the form of the statement.
3. The legislative assembly appropriates and dedicates the entire proceeds of the tax
provided by this chapter as the initial policyholders surplus of the company, and the
treasurer and director of the office of management and budget shall promptly pay over
the proceeds of the tax to the company.
4. The board of directors of the company may establish membership fees in amounts as
it deems reasonable to be paid by members of the company. Any physician who has
paid the tax specified in subsection 2 must be credited the amount of the tax paid
against the liability for any membership fee.
5. Upon payment of the specified membership fee, a physician may be insured by the
company for any and all hazards customarily insured by the company, subject to any
limitation of coverage specified by the company in accordance with policy limitations,
exclusions, conditions, deductibles, and loss-sharing requirements.