§ 26.1-22-10 — Insurance for buildings and personal property - Additional coverage - Township and school district property

Township and school district property.
1. Upon application, the office shall provide for insurance against loss by fire, lightning,
inherent explosion, windstorm, cyclone, tornado and hail, explosions, riot attending a
strike, aircraft, smoke, vehicles, or may insure any other risks of direct physical loss,
subject to the restrictions and exclusions determined by the office.
a. Insurance under this section applies to all buildings owned by state agencies,
political subdivisions, and winter shows, and the fixtures and permanent contents
in the buildings.
b. Insurance coverage under this section may not exceed the insurable value of the
property.
c. State-owned buildings constructed after 1939 and fixtures and permanent
contents insured under this chapter must be insured at replacement cost unless
the office approves an alternate value.
d. The office may allow property to be insured on a blanket basis.
2. An insurance policy under this chapter must include the name of the insured, the
location and description of the insured property, the amount of insurance coverage,
and the amount of the assessment.
3. In lieu of or in addition to the coverage under this section, a state agency, political
subdivision, or winter show may purchase insurance from an authorized insurance
company for all:
a. Buildings and the contents of the buildings owned by the state mill and elevator
association.
b. Public buildings owned by a political subdivision.
c. Public libraries owned by the state or a political subdivision for damage through
vandalism.
4. The office shall develop guidelines to be used by state agencies, political subdivisions,
and winter shows to determine insurable values of property for insurance coverage
and indirect loss coverage under this chapter.
5. This chapter does not apply to the property of any township or school district located
outside of the incorporated limits of a city unless the township or school district
requests and applies for insurance coverage under this chapter. The application must
be approved in writing by the office to be effective.
6. A state agency, political subdivision, or winter show may not make payments, enter
contracts, or incur debt for insurance on buildings, fixtures, or permanent contents
except as provided under this chapter.
7. If the insurance is canceled under section 26.1-22-16, the state agency, political
subdivision, or winter show may procure insurance from any authorized insurance
company.
8. If a disagreement or dispute arises under this section, the office and the state agency,
political subdivision, or winter show shall settle the disagreement or dispute under
section 26.1-22-11.