North Dakota § 65-04-02 Reserves - Surplus

North Dakota Statutes

§ 65-04-02 — Reserves - Surplus

North Dakota § 65-04-02

Title 65Workforce Safety and Insurance

Ch. 65-04The Fund and Premium Payments Thereto

This text of North Dakota § 65-04-02 (Reserves - Surplus) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 65-04-02 (2026).

Text

1.The organization shall maintain adequate financial reserves to ensure the solvency of the fund and the payment of future benefit obligations, based upon actuarially sound principles. The discount rate used in evaluating the financial reserves may not exceed six percent. The level of financial reserves plus available surplus determined as of June thirtieth of each year must be at least one hundred twenty percent but may not exceed one hundred forty percent of the actuarially established discounted reserve.

2.If the level of financial reserves plus available surplus determined as of June thirtieth of any year is below one hundred twenty percent of the actuarially established discounted reserve, the organization may not issue premium dividends and, notwithstanding section 65-04-01, the or

Free access — add to your briefcase to read the full text and ask questions with AI

1. The organization shall maintain adequate financial reserves to ensure the solvency of
the fund and the payment of future benefit obligations, based upon actuarially sound
principles. The discount rate used in evaluating the financial reserves may not exceed
six percent. The level of financial reserves plus available surplus determined as of
June thirtieth of each year must be at least one hundred twenty percent but may not
exceed one hundred forty percent of the actuarially established discounted reserve.
2. If the level of financial reserves plus available surplus determined as of June thirtieth
of any year is below one hundred twenty percent of the actuarially established
discounted reserve, the organization may not issue premium dividends and,
notwithstanding section 65-04-01, the organization shall modify recommended
premium rate levels so that the organization is estimated to come into compliance
within the following two years.
3. If the level of financial reserves plus available surplus determined as of June thirtieth
of any year is above one hundred forty percent of the actuarially established
discounted reserve, the organization shall issue premium dividends in a fiscally
prudent manner so that the organization is estimated to come into compliance with the
requirements of subsection 1 within the following two years. However, premium
dividends issued may not exceed fifty percent of the preceding year's premium in any
given year.
4. If the level of financial reserves plus available surplus determined as of June thirtieth
of any year is between one hundred twenty percent and one hundred thirty percent of
the actuarially established discounted reserve, the organization may not issue
premium dividends.
5. If the level of financial reserves plus available surplus determined as of June thirtieth
of any year is one hundred thirty percent to one hundred forty percent of the actuarially
established discounted reserve, the organization may issue premium dividends.
However, premium dividends issued may not exceed forty percent of the preceding
year's premium in any given year, and the level of financial reserves plus available
surplus may not be reduced below one hundred thirty percent.
6. For the purposes of this section, "available surplus" means net assets as stated on the
statement of net assets of the organization, but does not include funds designated or

obligated to specific programs or projects pursuant to a directive or specific approval
by the legislative assembly.
7. The independent annual financial audit of the organization must report the
organization's financial reserves.