§ 26.1-38.1-03 — Creation of the association

North Dakota § 26.1-38.1-03

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-38.1: Life and Health Insurance Guaranty Association

Text

1. There is created a nonprofit legal entity to be known as the North Dakota life and
health insurance guaranty association. All member insurers must be and remain
members of the association as a condition of their authority to transact insurance or a
health maintenance organization business in this state. The association shall perform
its functions under the plan of operation established and approved under section
26.1-38.1-07 and shall exercise its powers through a board of directors established
under section 26.1-38.1-04. For purposes of administration and assessment, the
association shall maintain two accounts:
a. The life insurance and annuity account that includes the following subaccounts:
(1) Life insurance account;

(2) Annuity account, which includes annuity contracts owned by a governmental
retirement plan or its trustee established under section 401, 403(b), or 457
of the United States Internal Revenue Code, but otherwise excludes
unallocated annuities; and
(3) Unallocated annuity account that excludes contracts owned by a
governmental retirement benefit plan or its trustee established under
section 401, 403(b), or 457 of the United States Internal Revenue Code.
b. The health account.
2. The association shall come under the immediate supervision of the commissioner and
is subject to the applicable provisions of the insurance laws of this state. Meetings or
records of the association may be opened to the public upon majority vote of the board
of directors of the association.