§ 26.1-23.1-01 — Government self-insurance pools - Regulation - Reinsurance

North Dakota § 26.1-23.1-01

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-23.1: Government Self-Insurance Pools

Text

1. Any two or more entities that have united to self-insure against their legal liability under
chapter 32-12.1 or any state agency that unites with another state agency or political
subdivision, or both, to self-insure against their legal liabilities are subject to the
provisions of this chapter with the exception of a city and its park district established
pursuant to chapter 40-49. Government self-insurance pools may only provide
coverage of the following types for pool members, their officers, employees, and
agents:
a. Casualty insurance, including general, public officials, and professional liability
coverages. However, if a court determines by clear and convincing evidence a
governing body of a political subdivision took intentional action through an
ordinance, administrative rule, or any other official action in violation of any state
law, the political subdivision is liable to the self-insurance pool for all attorney
fees, expenses, and costs incurred defending the action.
b. Automobile insurance, including motor vehicle liability insurance coverage,
security for motor vehicles owned or operated as required by chapter 26.1-41,
and protection against other liability and laws associated with the ownership of
motor vehicles and automobile physical damage coverages.
c. Property insurance, including inland marine coverage, money and securities
coverage, and extra expense coverage. However, this subdivision does not
authorize government self-insurance pools to write those types of insurance
coverages offered by the state fire and tornado fund under the provisions of
chapter 26.1-22 as they existed on December 31, 1988, unless a government
self-insurance pool enters a contract with the office of management and budget to
provide services for the state fire and tornado fund under section 26.1-22-02.
d. Other coverages authorized by the commissioner and necessary to a pool's
membership.
2. A government self-insurance pool may not expose itself to loss on any single risk or
hazard in an amount exceeding ten percent of the amount of its admitted assets
unless the pool obtains excess insurance or reinsurance with insurance companies
approved for such business by the insurance commissioner.