A purchasing group may be domiciled in any state and is composed of members having similar or related liability exposure who purchase liability insurance on a group basis. The laws and rules under N.D.C.C. § 26.1-46 and N.D. Admin. Code § 45-05-05 govern the registration and requirements of a purchasing group in North Dakota.
A purchasing group seeking to be registered in North Dakota must complete and submit the following forms:
- Application for Registration as a Purchasing Group (SFN 53914);
- Registration of Appointment of Agent for Service of Process (SFN 53916); and
- Certificate of Authority or Certificate of Good Standing from state of domicile.
The North Dakota Insurance Department will issue an approval letter if the application is approved. An application may be filed at any time throughout the year. All applications should be sent to the Department.
The registration of every purchasing group must be renewed by March 1 of each year via the Online Renewal System.
A domestic purchasing group (incorporated in the state of North Dakota) must file a financial statement for the past year.
Every purchasing group must submit a written notification of any changes in operations which result in the registration or notice then on file containing false, inaccurate, or misleading information. The notification to correct such false, inaccurate, or misleading information must be submitted within 30 days of the changes in operations.
A purchasing group must use a North Dakota registered risk retention group, a North Dakota licensed admitted insurance company or a surplus lines insurer approved in North Dakota to be its underwriter for the group. The underwriter is responsible for the payment of premium taxes, not the purchasing group, unless the underwriter is a surplus lines insurer, in which case the surplus lines broker would be responsible.
A Renewal Affidavit For Non-Admitted Companies must be submitted using the Department's enhanced Online Renewal System.