N.D. Cent. Code § 26.1-30-23: Managed repair programs - Penalty

1.A property insurance policy may be issued or delivered in this state with a managed repair program provision offering premium incentives for managed repair program participation. As used in this section, "managed repair program" means an insurance policy providing a program with a specified reduction in premium or other specified incentive for participation in a program restricting an insured's choice of repair vendors or contractors for covered repairs.

2.An insurer offering a managed repair program shall:

a.Prominently disclose on the policy declarations page the policy restricts the insured's right to choose repair vendors;

b.Specify any premium benefits for program participation;

c.Include a separate disclosure form, written in at least twelve-point font, which explains the restrictions on vendor selection, including:

(1)The process for repairs under the program;

(2)The insured's rights and responsibilities; and

(3)Any warranty or guarantee provided for repairs.

3.This section does not apply to contractor referral or managed or direct repair programs that do not provide a specified reduction in premium or other incentive.

4.This section applies to insurance policies issued or renewed after August 1, 2025.

5.The commissioner shall enforce this section.

6.The commissioner may assess a penalty on an insurer in violation of this section, as determined by the commissioner.