§ 26.1-22-21 — Excess loss reinsurance - Insurance broker of record

North Dakota § 26.1-22-21

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-22: State Fire and Tornado Fund

Text

1. The office shall procure and shall keep in force excess loss reinsurance naming the
fund as the reinsured. The excess loss reinsurance must be in an amount and for a
period determined by the office to be sufficient for the fund. The reinsurance contract
must reimburse the fund for losses incurred by the fund under policies issued by the
fund and arising out of each occurrence of a covered cause of loss and include at least
a sixty-day cancellation notice.

2. The cost of the excess loss reinsurance must be paid out of the assessment income of
the fund and must be assessed against the policyholders that benefit from the
reinsurance. Excess loss reinsurance must be written only by a company or
companies authorized to do business within this state. The contract must be
countersigned by a licensed North Dakota resident insurance producer.
3. The office may contract for insurance broker of record services to assist in procuring
excess loss reinsurance. The insurance broker must be licensed and authorized to do
business in the state.