§ 26.1-23.1-03 — Government self-insurance pool approval from the commissioner

North Dakota § 26.1-23.1-03

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

Text

Before the insurance commissioner authorizes the operation of a government self-insurance
pool, the pool shall provide the following:
1. A financial plan setting forth:
a. The insurance coverages to be offered by the pool, applicable deductible levels,
and the maximum level of claims to be self-insured against.
b. The amount of cash reserves to be set aside for the payment of claims.
c. The amount of aggregate excess insurance or reinsurance coverage to be
purchased in the event that the pool's resources are exhausted in a given fiscal
period.

2. A plan of management which must provide the following:
a. The means of establishing the governing authority of the pool and, if the
governing authority of the pool is set forth in articles of incorporation, the articles
must be filed in the office of the secretary of state and a certified copy must be
filed with the commissioner. The commissioner may not issue a certificate to the
pool if, in the commissioner's judgment, the company's name too closely
resembles the name of an existing corporation or is liable to mislead the public.
b. The responsibility of the governing authority with regard to fixing contributions to
the pool by participating government political subdivisions, maintaining reserves,
levying and collecting assessments for deficiencies, disposing of surplus, and
administering the pool in the event of termination or insolvency.
c. The basis upon which new members may be admitted to, and existing members
may leave or have membership terminated by, the pool.
d. The identification of funds and reserves by exposure areas.
e. Other provisions necessary or desirable for the operation of the pool.
3. A plan for the election by pool members of a governing authority, which must be a
board of directors for the pool.