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How can I explain the State's liability coverage?

You can tell other parties and/or law enforcement that liability coverage is the North Dakota Risk Management Fund, pursuant to N.D.C.C.ch. 32-12.2. (43kb PDF) There technically is not a policy number because the coverage is by statute, rather than an independent insurance company. State fleet vehicles should have an insurance card with this information in the packet given to the driver at checkout.