§ 43-01-11 — Bonds or liability policy - Deductible policy permitted

North Dakota § 43-01-11

• Jurisdiction: North Dakota
• Title 43: Occupations and Professions
• Ch. 43-01: Abstracters

Text

Before a certificate of authority may be issued, the applicant therefor shall file with the
secretary-treasurer of the board a surety bond in favor of the state, or an abstracter's liability
policy to be approved by the board as to form, sufficiency, and surety thereof and written by a
company authorized to write such insurance in this state, in a penal sum or limit of liability equal
to ten thousand dollars for each ten thousand inhabitants, or major fraction thereof, residing in
the county in which the applicant's office is maintained, as shown by the last official federal or
state census preceding the filing of the bond or abstracter's liability policy. Such bond, or
abstracter's liability policy, however, may not be less than one hundred thousand dollars. The
bond or liability policy must be conditioned for the payment by the abstracter of any liability
imposed upon the abstracter by law for damages arising from any claim against the abstracter
that may be sustained by or that accrues to any person by reason or on account of any
negligent act, error, or omission in any abstract or certificate of title, or continuation thereof,
made and issued by the abstracter. All surety bonds, liability policies, and evidence of annual
renewal of the bonds and policies must be filed with the secretary-treasurer of the board. All
abstracters' liability policies must be endorsed to provide that cancellation cannot be effected by
either the abstracter or the insurance company without ten days' written notice to the
abstracters' board of examiners. It is permissible under this section to file an abstracter's liability
policy in the deductible form, provided that the deductible provision may not exceed ten
thousand dollars.