North Dakota lawmakers are advancing legislation aimed at modernizing the state’s oversight of insurance producers, introducing new rules that emphasize electronic communication and heighten compliance requirements for public adjusters and nonresident licensees.
Senate Bill No. 2125, introduced by the Industry and Business Committee at the request of the state’s Insurance Commissioner and signed last week, amends several sections of the North Dakota Century Code. Among its most notable provisions is a new mandate requiring all licensed insurance producers to maintain an electronic mailing address expressly for regulatory purposes — a move signaling the state's shift toward digital-first enforcement.
Under the bill, service of process and official communications from the Insurance Commissioner may now be delivered via electronic mail. Insurance producers, particularly nonresident licensees, are expected to monitor their designated email accounts regularly. Failure to do so could result in significant legal or administrative repercussions.
The bill introduces section 26.1-26-33.1, stipulating that insurance producers must maintain an electronic mailing address and that they bear full responsibility for monitoring it. In tandem, amendments to section 26.1-26-22 enable the Insurance Commissioner to serve process on nonresident producers via email. Service is considered complete once the email is sent.
State officials describe the change as a way to streamline regulatory communication, but it places new burdens on producers to remain digitally vigilant.
Another key feature of the legislation is an expansion of the grounds for revoking nonresident producer licenses. Under revisions to section 26.1-26-42.1, a nonresident license may now be suspended or revoked without notice or hearing if the producer’s home state license is revoked, suspended, or past due for renewal. Notification of these actions may come through email or via the national producer database maintained by the National Association of Insurance Commissioners (NAIC).
The streamlined process raises the stakes for nonresident producers to ensure their licensing status remains in good standing both in their home state and in North Dakota.
Public adjusters are also affected by the proposed legislation. The bill modifies sections related to license renewal, bonding requirements, and continuing education for adjusters.
The renewal notice period for public adjuster licenses would be extended from 60 to 90 days prior to expiration. However, adjusters who allow their licenses to lapse face a narrow window — 12 months for individuals, 30 days for business entities — to reinstate or renew without examination, often at increased fees.
Additionally, the minimum bond requirement for public adjusters remains at $20,000, but termination of that bond must now be reported at least 30 days in advance, down from 60. Any lapse in financial responsibility would result in the automatic termination of the adjuster’s authority to act.
The bill also adjusts continuing education mandates, requiring adjusters to complete 24 credit hours biennially, including three hours dedicated to ethics. Nonresident adjusters may satisfy these requirements by meeting those of their home state.
At its core, Senate Bill 2125 reflects the Insurance Commissioner’s push to modernize oversight of the state’s insurance industry while placing a greater onus on producers and adjusters to comply promptly with licensing, renewal, and educational requirements.
