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Examinations and Company Licensing Division
The Examinations and Company Licensing Division continually monitors the financial strength of insurance companies to help assure they have enough money to pay policyholder claims. It performs periodic financial audits of North Dakota based companies to assure they are financially sound and complying with state laws dealing with insurance company financial matters. This division oversees the licensing of approximately 1,400 insurance companies doing business in the state.
Any company seeking to sell insurance in North Dakota must go through a prelicensure review to screen out those companies that are either financially troubled or have a history of regulatory problems in other states.
Functions of Examinations and Company Licensing Division
- License companies to write insurance in the state of North Dakota by issuing a Certificate of Authority. Companies chartered in other states that seek admission as a licensed insurer will file an Expansion Uniform Certificate of Authority Application (Expansion UCAA).
- Companies that seek to be chartered and licensed in North Dakota as a domestic company will file a Primary Uniform Certificate of Authority Application (Primary UCAA).
- The law provides for the following types of entities to be licensed: life company, property and casualty company, fraternal benefit society; benevolent society; nonprofit health service corporation, prepaid limited health service corporation, health maintenance organization, prepaid legal service organization, title insurance company, reciprocal or interinsurance exchange, trust company, county mutual insurance company, premium finance company, self insurer and government self-insurance pool.
- Approve and register the following types of entities to conduct insurance transactions in the state: accredited reinsurance company, surplus lines company, purchasing group, risk retention group and group health insurance purchasing cooperative.
- Issue yearly license renewals for entities in compliance with applicable laws and rules.
- Process requests for corporate changes including a change in company name or address, a redomestication from one state to another state, or withdrawal from North Dakota.
- Process requests by licensed companies to add or delete a line of business.
- Process and review Holding Company Form A filings related to mergers or acquisitions.
- Process and approve Holding Company Form D filings related to affiliated transactions that must be submitted to the Commissioner for review.
- Provide forms and instructions to licensed companies for annual and quarterly filing requirements.
- Monitor company filings to determine compliance and to identify delinquent filings.
- Provide domestic companies with certifications that are required by other states in which the insurer operates, including certificate of compliance, certificate of deposit and certificate of valuation.
- Process and compile fire district reports filed by property insurers that write fire, allied lines and multiple peril insurance coverages in North Dakota.
- Process and transmit abstracts filed by licensed companies to the North Dakota Newspaper Association for publication in local newspapers.
- Transmit service of process documents to licensed companies.
- Provide public access to financial information reported by licensed companies and that is subject to the state's open records law.
- Administer statutory deposits required to be made by domestic life companies.
- Process revocation and suspension orders signed by the Commissioner.
- Compile the Department's annual publication titled the Statistical Report of Premiums and Losses of Insurance Companies doing Business in North Dakota.
- Compile financial information for the Biennial Report of the North Dakota Insurance Department.
- Perform a financial examination of each company domiciled in North Dakota no less frequently than every five years to determine the company's financial condition and compliance with ND law. A written Report of Examination is issued by the Department and is provided to the Company's Board of Directors and to state insurance regulators in the states in which the company is licensed to write insurance. The Report of Examination will also be provided to the public upon request.
- Perform ongoing financial analysis of a domestic company's annual and quarterly statements and other required filings to identify financial problems.
If you have questions regarding this division, please contact: