Section 45-05-05-06 - Risk retention group representatives and purchasing group representatives1. License requirement. No person, resident or nonresident in this state, may act as or hold out in this state to be a risk retention group representative for a risk retention group, or a purchasing group representative for a purchasing group which solicits members for the purpose of selling liability insurance coverage, purchases liability insurance coverage for group members located within this state or otherwise does business in this state unless then licensed as such under these rules. 2. Any person, resident or nonresident in this state, acting as or holding out in this state to be a risk retention group representative or a purchasing group representative must hold a current North Dakota insurance producer license, in the lines of insurance represented, and must be appointed by the risk retention group or purchasing group represented in North Dakota. 3. Any person acting as a risk retention group representative or purchasing group representative shall otherwise be subject to and comply with the provisions of North Dakota Century Code chapter 26.1-46 as they pertain to insurance producers. 4. Exceptions to license requirement. Risk retention group representative and purchasing group representative for the purpose of licensing does not include: a. Any officer, director, owner, partner, trustee, or full-time salaried employee of a risk retention group or purchasing group; and b. Any telemarketing or mass mailing organization or any radio or television station or network or, newspaper or magazine publisher or distributor which makes statements or carries advertisements for a risk retention group or purchasing group to the extent only general, nonrisk specific information is given concerning the Federal Liability Risk Retention Act, North Dakota Century Code chapter 26.1-46, and the risk retention group or purchasing group and no application for insurance is received, no underwriting information is taken, and no insurance rate or premium is quoted or collected. 5. Licensing of partnership or corporation. a. A partnership or corporation may be licensed as a risk retention group representative or purchasing group representative. Each general partner and each other individual authorized to act for the partnership and each individual authorized to act for the corporation must be named in the license or registered with the commissioner and shall qualify as through an individual licensee; and b. The licensee shall promptly notify the commissioner of any changes among its members, directors, officers, and other individuals designated in or registered as to the license. N.D. Admin Code 45-05-05-06
Effective October 1, 1989; amended effective April 1, 2010.General Authority: NDCC 26.1-46-13, 28-32-02
Law Implemented: NDCC 26.1-46