§ 26.1-31.1-02 — Licensure

North Dakota § 26.1-31.1-02

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-31.1: Reinsurance Intermediaries

Text

1. No person, firm, association, or corporation may act as a reinsurance
intermediary-broker in this state if the reinsurance intermediary-broker maintains an
office either directly or as a member or employee of a firm or association, or an officer,
director, or employee of a corporation:
a. In this state, unless the reinsurance intermediary-broker is a licensed producer in
this state; or
b. In another state, unless the reinsurance intermediary-broker is a licensed
producer in this state or another state having a law substantially similar to this law
or such reinsurance intermediary-broker is licensed in this state as a nonresident
reinsurance intermediary.
2. No person, firm, association, or corporation may act as a reinsurance
intermediary-manager:
a. For a reinsurer domiciled in this state, unless the reinsurance
intermediary-manager is a licensed producer in this state.
b. In this state, if the reinsurance intermediary-manager maintains an office either
directly or as a member or employee of a firm or association, or as an officer,
director, or employee of a corporation in this state, unless the reinsurance
intermediary-manager is a licensed producer in this state.
c. In another state for a nondomestic insurer, unless the reinsurance
intermediary-manager is a licensed producer in this state or another state having
a law substantially similar to this law or the person is licensed in this state as a
nonresident reinsurance intermediary.
3. The commissioner may require a reinsurance intermediary-manager subject to
subsection 2 to:
a. File a bond in an amount from an insurer acceptable to the commissioner for the
protection of the reinsurer; and
b. Maintain an errors and omissions policy in an amount acceptable to the
commissioner.
4. a. The commissioner may issue a reinsurance intermediary license to any person,
firm, association, corporation, or limited liability company who has complied with
the requirements of this chapter. Any such license issued to a firm or association
will authorize all the members of the firm or association and any designated
employees to act as reinsurance intermediaries under the license, and all such
persons must be named in the application and any supplements thereto. Any
such license issued to a corporation must authorize all of the officers and any
designated employees and directors thereof to act as reinsurance intermediaries
on behalf of the corporation, and all such persons must be named in the
application and any supplements thereto. Any such license issued to a limited
liability company must authorize all of the managers and any designated
employees and governors thereof to act as reinsurance intermediaries on behalf
of the limited liability company, and all such persons must be named in the
application and any supplements thereto.
b. If the applicant for a reinsurance intermediary license is a nonresident, the
applicant, as a condition precedent to receiving or holding a license, shall
designate the commissioner as agent for service of process in the manner, and
with the same legal effect, provided for by this title for designation of service of
process upon unauthorized insurers. The applicant shall also furnish the
commissioner with the name and address of a resident of this state upon whom
notices or orders of the commissioner or process affecting the nonresident
reinsurance intermediary may be served. The licensee shall promptly notify the
commissioner in writing of every change in its designated agent for service of
process, and the changes do not become effective until acknowledged by the
commissioner.
5. The commissioner may refuse to issue a reinsurance intermediary license if, in the
commissioner's judgment, the applicant, anyone named on the application, or any

member, principal, officer, or director of the applicant, is not trustworthy, or that any
controlling person of the applicant is not trustworthy to act as a reinsurance
intermediary, or that any of the foregoing has given cause for revocation or suspension
of the license, or has failed to comply with any prerequisite for the issuance of such
license. Upon written request therefor, the commissioner will furnish a summary of the
basis for refusal to issue a license.
6. Licensed attorneys at law of this state when acting in their professional capacity as
such are exempt from this section.