§ 26.1-30-22 — Mandatory arbitration endorsements for property insurance - Written acceptance - Penalty

acceptance - Penalty.
1. A property insurance policy may be issued or delivered in this state with mandatory
binding arbitration provisions if the:
a. Mandatory binding arbitration provisions are contained in a separate
endorsement;
b. Named insured accepts the mandatory binding arbitration endorsement in writing
in accordance with subsection 2; and
c. Property insurance policy does not require mandatory binding arbitration upon
request.
2. The written acceptance of the insured required under subsection 1 must:
a. Be on a form separate from the policy application and other policy forms;
b. Clearly state the rights being waived in exchange for the premium discount,
including the right to a trial by jury; and
c. Include the following statement in at least twelve-point bold font:
"By signing this form, I agree to resolve all covered property insurance claims
through mandatory binding arbitration. I understand that by agreeing to
mandatory binding arbitration:
I am giving up my right to have disputes resolved in court.
I am giving up my right to a jury trial.
I am accepting these terms in exchange for a premium discount of [dollar amount
or percentage of premium amount].
This agreement is binding on all insureds under the policy and remains effective
upon policy renewal, replacement, or reinstatement unless I request removal of
the mandatory binding arbitration endorsement in writing".
3. All arbitration proceedings under this section must:
a. Be conducted in this state if involving a resident of this state;
b. Be governed by state law; and
c. Not require arbitration in another state.
4. The acceptance or rejection of mandatory binding arbitration is valid and binding on all
insureds under the policy and remains effective upon policy renewal, replacement, or
reinstatement unless the named insured requests a change in writing.
5. This section applies to all property and casualty insurance policies issued or renewed
after August 1, 2025.
6. This section does not apply to a:
a. Voluntary arbitration agreement entered after a dispute has arisen;
b. Large commercial risk as defined in section 26.1-25-02.1; or
c. Commercial surplus line insurance policy placed in accordance with section
26.1-44-03.
7. The commissioner shall enforce this section.
8. The commissioner may assess a penalty on an insurer in violation of this section, as
determined by the commissioner.