§ 26.1-26-53 — Controlled business prohibited - Definition - Formula for determination

North Dakota § 26.1-26-53

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-26: Insurance Producers and Consultants

Text

1. As used in this section, unless the context otherwise requires, "controlled business"
means insurance written on the interests of the licensee, licensee's immediate family,
or licensee's employer; or insurance covering the licensee, the members of the
licensee's immediate family, a business entity, or the officers, directors, substantial
stockholders, partners, or employees of such a business entity of which the licensee or
a member of the licensee's immediate family is an officer, a director, a substantial
stockholder, a partner, an associate, or an employee. "Controlled business" does not
include crop insurance business sold by a business entity licensed as an insurance
producer for crop insurance between August 1, 2001, and December 31, 2002.
2. The commissioner may not grant, renew, continue, or permit to continue any license if
the commissioner determines that the license is being or will be used by the applicant
or licensee for the purpose of writing controlled business. A license is deemed to have
been or intended to be used for the purpose of writing controlled business if the
commissioner determines that during any twelve-month period the aggregate
commissions earned from the controlled business exceeded thirty-five percent of the
aggregate commissions earned on all business written by the licensee during the
same period.
3. This section does not apply to insurance written in connection with credit transactions,
including title insurance.