Health Care Reform Review
by Pat Saltsman, CLTC
Greetings to all my fellow agents!!!
I realize I have big shoes to fill as Keith
did a great job for two years. Thank you Keith for giving us
two years of your life in making sure our industry continues to
grow and that the younger agents will have a career. I hope I
can lead our NAIFA as well as you did.
So begins a great year and I am really
excited with all that we will accomplish!!!
First of all, I ask that you keep our
fellow NAIFA-Minot members in your prayers as we have 12 members
that have been affected by the flood. Their homes and offices
are lost. We have established a fund that accepts donations to
help them out, so if you would like to contribute, send a check
payable to NAIFA to Nancy and we will give it to the
association. They can distribute it however they choose. I
don’t know if you have seen pictures, video or gone there to
experience first hand but they need us…… So I am asking us to
step up to the plate. I figured we raised circa $15,000 for
children in Afghanistan at our Minot convention, we should be
able to get that or more for our fellow NAIFA-Minot members.
As we all know, membership is our number
one priority. We need to have a strong unified voice and in
order to do that, we need numbers. We all know numbers speak
volumes. Do you know why AARP is so powerful in Washington,
because old people band together!!! Bottom line - be passionate
about your industry. Sell it like you would sell one of your
products. If you work in an office – ask your coworkers “Do you
belong to NAIFA-ND?” if not, let them know why it is so
important. We are agents, we know how to sell products we
believe in – and we believe in our association, so let’s sell
it! We may not be old, but we can still band together!
Marc Siverson has agreed to be the state
membership chair, so expect a call or visit from him. Marc and
I have been working together to get some articles and
information on what is going on in the industry to help you
recruit members. Marc is very excited about increasing our
membership and will do what is needed to get it done.
I strongly encourage all of you to take
the online academy through the National NAIFA website. It has 6
sessions that you take at your own pace. I really appreciated
them as the first one who gave the history of NAIFA and that was
an eye opener!! We have quite a history and have been very
instrumental and active in Washington. You say, geez Pat that
is not a news flash. Okay, then check it out yourself and see
if you learn anything new……I will bet you will. So please make
it your goal to go through the online academy and learn about
The first Tuesday of every month, the 7
local presidents and I have a conference call. If there is
anything that you would like us to discuss or share with the
other associations please let your president know so he/she can
put it on the agenda. This is YOUR association so YOU have a
voice and we will listen.
One last thing I would like to talk about
is the National and State conventions . We have an opportunity
to meet face to face with to our representatives in Washington
at our National Convention September 10-14th. We
ask that two delegates from each association join us in
Washington DC for this great convention. The state board has
come up with money to help with expenses for people to attend.
The state convention will be in Grand
Forks May 2-4th, 2012. Put it on your calendar now
as Grand Forks is going all out to welcome us and lining up some
My fellow agents, I am excited to be your
state President and want to increase our membership and with all
your help, WE can achieve this.
Let’s make it a great year.
NAIFA-ND 2012 State Convention
The 2012 NAIFA-ND State Convention will be held in Grand
at the Ramada Inn on May 2-4, 2012. Mark your
calendars and plan to attend!!
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NAIFA - Minot
By Jim Simons, President
As I begin my year as NAIFA-Minot
Association President I want to start out by thanking Lyle Kraft
and his board for the great job they did in 2010-2011. We had
excellent CE at our meetings and we were instrumental in
furthering the outstanding relationships we have with our local
legislators. My biggest concern for this year is the impact of
the flooding in our area. Twelve of our forty members either
had their home, office or home and office flooded. Most did not
have flood insurance. We have asked for assistance from NAIFA
National in the form of a reprieve of dues for the year for
these twelve members. Keith Phillips, NAIFA-ND past president
has started a fund for Minot. We are very grateful for his
concern and leadership. I ask for everyone’s support in this
effort, especially from my fellow advisors in Minot. If you
were fortunate enough to not be directly affected by the
flooding to reach into your pockets and send your donation to
NAIFA-ND 1811 E Thayer Ave Bismarck, ND 58501.
We have a full year of CE planned for each
of our monthly membership meetings. I am scheduled to represent
the local association at this year’s NAIFA Convention in
Washington DC. I am looking forward to meeting with our members
in Congress and discussing those issues which affect us most.
For those of you who have not completed
the NAIFA on line Leadership Academy I can’t over emphasize how
important this is. The training is excellent and covers the
most important areas of our business as leaders.
I look forward to working with everyone in
our local and our state association as well as our friends at
NAIFA National. Let’s have a great membership year!
by Harlynn Bjerke,
The Lake Region
September meeting will provide 3 hours of continuing education
on Ethics - by an attorney, Social Services, and an
administrator from a Long Term Care facility. We are
working on getting our APIC contacts up to date along with
IFAPAC contributions. We will be promoting the Minot flood
relief efforts, next year's State Convention in Grand Forks, and
working on increasing membership.
- North Valley
by Shari Hanson,
The NAIFA-North Valley association will be
working hard this year to increase membership. We will be
hosting the 2012 NAIFA-ND Convention and are working hard on
securing great speakers. As it has been several years
since the convention was held in Grand Forks, we will make the
return here spectacular and hope to have great attendance.
Please mark your calendars now for May 2-4, 2012 and plan to
NAIFA - Roughrider
by Todd Otto, President
We had a busy summer trying to get the next year’s budget,
meeting schedule and other activities planned. Mix in the
distractions of helping our friends in Bismarck and Minot with
the Flood Fight, and that doesn’t leave much time for the
typical fun of summer!
for the upcoming year have been moved to the 2nd
Friday of each month beginning in September – still at Lady
Meetings will be as follows: 11:00AM Board Meeting,
11:30 General Meeting, 12:15 Lunch
this point, the plan is still for quarterly CE. My
understanding is that the NAIFA-ND may pay filing fees for a
couple classes from the Commissioners of Insurance, Banking and
Financial Services and also possibly one for State Legislators
to come in and share Financial Services Issues in the
Legislature – if successful, this may allow us to go back to
some monthly CE and still keep our costs down.
We held a Picnic in June, but didn’t get very good attendance
since it fell on the same day as a couple other Picnic
Activities for DSU and a Bank that were more prominently
advertised. Still working to identify and recruit new members.
by Phil Haug, President
As we begin our new year of leadership I
would like to thank and recognize the leadership from the past
year. Tim Deitemeyer has done a wonderful job of taking this
organization to a new level with a renewed level of commitment
and focus. The work done by he and his leadership team have
positioned us to grow our membership, commitment, and
involvement for our local association. Thank you Tim for your
efforts and time dedicated to NAIFA and the FM Local
This year will present us with challenges
that are not unfamiliar to our industry. As we speak, talk out
of Washington and our elected leaders is of balancing the budget
and raising revenue. As a nation, our years of spending must be
addressed to ensure the future of our country, give our children
and grand children the same opportunity to enjoy the same things
we have come to value. Less money will be spent and more money
will be raised by our government if you listen to our elected
leaders. Our industry has benefited from proper tax treatment
and the public initiative to take personal responsibility. Life
Insurance has been given tax favorability based off of a
handshake with founding members of our organization and the
President of the United States at the advent of the personal
income tax. Since then, process and procedure has changed over
the years. We no longer can rely on handshakes and promises, we
have to be active and involved. The scope of our organization
has also changed over that period to meet those challenges and
has represented us well for decades and decades to come.
Today we are faced with headwinds similar
to those we have always faced, only stronger! It is our duty as
professional advisors to advocate for our career and our
industry. It is a burden that cannot be ignored, pushed off, or
delegated. We as a group must come together to grow and grow
our voice in the process. One person working for a cause can
start a movement, but a group can make it explode to
prosperity. We have the opportunity to grow our membership to
levels that represent the commitment we all share for this noble
profession. There are several individuals who benefit from the
initiatives that we fight for who are not members. This year
our challenge will be to introduce what we can do together to
continue our prosperity for years to come. I personally
challenge each member to invite a guest to a NAIFA meeting and
ultimately invite them to be a member this year.
Several of our members are reaching the
second half of their career. Each of us has a business that we
are working on maintaining and growing. If we are to all
prosper, our business must be appreciating. If you were to own
a business and look to sell it, growing it will net us the
largest sale price and create a legacy. If the business were to
be shrinking, we would expect to get less for our business.
NAIFA is similar. In our drive to thrive, we must make our
organization appreciate. This is done through increasing our
membership and involvement. Each of us has made “promises” to
our clients over the years. Promises that we all fully expect
to deliver on, we can and will do this. It will take a level of
commitment to your industry to do this. The battles that we
will face are won in the trenches, not on the sidelines.
Everyone needs to get into this for us to win.
I have deep conviction that 2011 will be
the year that revitalizes the NAIFA organization and the local
FM Chapter. Too much is at stake to let it go the other
direction. My wife and I are expecting our first child in the
beginning of May. As I am faced with the prospect of being a
Father for the first time, new thoughts have entered my mind.
What will she be like? What will she grow up to be? Will she
have the same opportunities that I had, or more, or less? These
things will play out with time and I hope that she has every
opportunity she could ever want or need as she grows up. I know
that things that we do TODAY will help her many years down the
road. When she is entering her career choices, I want her to
have the same industry to enter that we have today. It will
take involvement by all of this to happen. I am sure that each
of you has someone that you would like to get into the business
with the same wishes. We must work together today to create a
future for the next generation as well as help ourselves grow.
The part of our organization is in the
first half of their career. They face the same challenges that
we all faced when starting. Growing product knowledge, growing
their business, finding their next prospect, paying their bills
each month, things we have all gone through in our career.
These new Representatives have a hunger and a drive to take our
industry to new highs. They will also be protecting the next
generation of our country. We should all work to leave this
career better than we entered it. The promises you made will
most likely be delivered by this next generation. We are all in
this together. As a manager, nothing is more rewarding than
bringing someone into the career and seeing them succeed. As a
NAIFA member, nothing is more rewarding than working to give
them the same chance to succeed that you were given and I was
given. LUTCF courses at our local level are educating our next
top producers to help all community reach financial security
through education and involvement. LILI has started to develop
new leaders who are members that will direct our organization
for future years. Those members are found by inviting new Reps
to join our organization when they enter our career. At a
leadership convention in Washington DC a stat was shared with
the group that rings loud in my head, 8 out of 10 NAIFA members
are still in the business after 5 years in the business and 2
out of 10 NON-NAIFA members are in the business after 5 years.
Membership does matter! When you find a new person entering our
career, encourage them to join! You may recruit the next Board
Member or even National President!
This year will be fun and challenging. We
have great momentum working in our direction and a passion for
our career that will not be ignored. As I enter my year as the
local president, I look forward to working with all of you to
reach our full potential. I encourage everyone to recruit a new
member, contribute to IFAPAC and make an effort to be an active
member of NAIFA, too much is at stake not be involved.
Benjamin Franklin in his later years was
quoted as saying, “The greatest act of unselfishness is planting
an oak tree at 80 years old knowing you will never enjoy its
shade.” Our time is now, the opportunity is here, we all have
the chance to plant our tree for our next generations!
Thank you for your membership and
commitment to our career, you are doing great things for
generations to come!
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APIC - State
By Jim Simons, Chair
Your APIC committee has been very active
from April-June 2011. We had two meetings with Congressman Berg
during his return to North Dakota in April. We emphasized the
issues provided by NAIFA. Thank you to all who participated in
the meetings in Bismarck and Fargo. Be prepared to meet in the
district offices during August. We will keep you informed. We
conducted APIC Training with a teleconference Association
Leadership Conference on July 21, 2011. We discussed an APIC
overview and provided sample APIC plans for each of the locals.
Please complete these plans and get them back to me by 30
September. We also sent out the APIC contact lists for both the
national and state level. If you have a relationship with
either a federal or state representative, make sure you notify
your local APIC Chair. Consider holding a legislative
membership meeting this fall to highlight IFAPAC and APIC.
Invite national or state leaders or their staffers to your
meeting. There are district offices in Bismarck, Fargo, Grand
Forks and Minot.
By Gregg Webster, Chair
Continuing Education (CE) is part of our career. We need to
continually improve, update, and stay current. CE can be
obtained in several ways; one of which is through participation
in NAIFA meetings.
The National NAIFA Meeting has several CE seminars. Our State
NAIFA Convention has and will continue to feature CE as part of
the program. Most local organizations offer CE when possible.
Continuing Education in North Dakota and neighboring states has
changed significantly in recent years. While change can be
difficult, it is a reality. All CE must have prior approval.
Fortunately, the North Dakota Insurance Department responds
relatively quickly. Furthermore, the course presenter can
change as the course provider chooses.
Since all of our local NAIFA organizations are approved CE
providers, the next step is to develop an outline and submit the
course for approval. If someone else has a course approved,
check with them about offering the course. There is an
additional offering provision that saves the course filing fee.
Some CE providers will come as a guest speaker for a meeting.
The ND Insurance Dept website lists all providers and approved
Care Reform Review Committee
by David Middaugh
The Health Care
Reform Review Committee chaired by Rep. George Keiser, and
consisting of 15 Representatives (including NAIFA-ND member Jim
Kasper) and 5 Senators met on Thursday, July 7th to
review the status of North Dakota’s implementation of the
Affordable Care Act (ACA), with a focus on creation of a State
Health Care Exchange.
Insurance Commissioner Adam Hamm gave the first testimony. His
update of the status of State implementation of the Affordable
2) An update of the status of Federal Health and Human
Services (HHS) guidelines regarding the ACA, and
3) A summary and discussion regarding the National
Association of Insurance Commissioners proposed American Health
Benefit Exchange Model Act.
Commissioner Hamm commended the Committee for voting earlier to
proceed with a State Exchange instead of opting for the National
Exchange, but testified that HHS was soon releasing 800 pages of
regulation regarding exchanges, and urged the Committee that,
while planning for a State Exchange should continue, they should
reserve their option to opt for the Federal Exchange, should the
regulations prove to be too onerous.
Lisa Carlson of Sanford Health then testified on the Utah Exchange,
pointing out that it was established prior to ACA passing, and
as such needs revisions to be ACA compliant. But it is
functioning in the small group market as a defined contribution
plan approach, is agent friendly, and had agent backing.
Currently 94% of the small groups using the Exchange are done
through agents, and 24% of the enrollees are people who
previously had no insurance.
Next there was a panel discussion with Brad Bartle representing Blue
Cross of North Dakota, Geoffrey Bartsh, Medica, and Lisa
Carlson, Sanford. All indicated they see a substantial number
of existing groups going through the Exchange after 1/1/14.
The second panel discussion involved Dave Middaugh representing NAIFA-ND,
Jerry Jurena, President of the ND Hospital Association, Courtney
Koebele, ND Medical Association, and representatives of AARP and
the ND Chamber of Commerce.
Dave gave a 10 minute review of the role of the insurance agent, and
the need to have insurance agents included in, and compensation
by, the Exchange as they are in Utah.
Comments were also given by Lisa Feldner, Chief Information Officer,
Information Technology Department, regarding how other states
are implementing Health Care Exchanges, and Amy Smith, Deputy
State Health Officer State Department of Health, regarding
applying for Federal Grants, and Maggie Anderson, Director
Medical Services Division, Department of Human Services,
regarding Medicaid management information system issues, the
status of Rhode Island’s Medicaid block grant, and Medicaid
eligibility under ACA.
The 7 hour hearing was then adjourned, with the next Committee meeting
scheduled for Friday, August 5th, in Fargo.
Copies of written testimony are available through NAIFA-ND.
by Norbert Mayer, Chair
Below is a summary of the new laws
affecting insurance companies and producers that went into
effect on August 1, 2011
HB 1083 - Risk-based capital reports
(26.1-03.1-03(1), 26.1-03.2-03(1)). This bill adds a trend
test to the Company Action Level requirements for property and
casualty insurers and for health organizations. The change will
cause the RBC Company Action Level for property and casualty
insurers to be triggered when the RBC ratio is between 200%-300%
and the insurer's combined ratio (i.e., loss ratio plus expense
ratio) is greater than 120%. For health organizations, the
Company Action Level would be triggered with an RBC ratio
between 200%-300% and a combined ratio greater than 105%.
Current law already has a trend test for life insurers and
property and casualty insurers writing only accident and health
HB 1121 - Confidentiality of actuarial
opinion support documents (26.1-03-11.1 (3)). This
billprovides confidentiality for the Actuarial Opinion Summary,
Actuarial Report and supporting work papers underlying a
Company's required Statement of Actuarial Opinion. Current law
already provides this confidentiality for life insurers'
actuarial documents; this bill extends that confidentiality to
non-life insurers as well.
SB 2111 - Life and Health Insurance Guaranty
Association (26.1-38.1-01, 26.1-38.1-02(12), (20) and (23),
26.1-38.1-05(1)(b), 26.1-38.1-05(2)(b)(4), 26.1-38.1-06(3),
26.1-26.1-38.1-17. The key change in this bill will increase
the benefit limits for specific lines of business that the North
Dakota Life and Health Insurance Guaranty Association is
obligated to pay in the event of an insurance company
insolvency. The limits were increased from $100,000 to $300,000
for long-term care and disability insurance; from $100,000 to
$500,000 for basic hospital, medical, surgical, and major
medical policies; and from $100,000 to $250,000 for annuities,
government retirement benefit plans and structured settlement
annuities. The Guaranty Association limits for life insurance
were not changed. Also, the bill specifies that Medicare Part C
and Part D policies are not covered by the Guaranty Association;
removes the annual $150 per member cap and the pro rata option
for the Association's assessment of its administrative expenses
and legal costs under the Class A assessment authority; requires
the Guaranty Association to pay interest on a refund due to a
member insurer at the rate earned by the Association; and
requires the Guaranty Association's plan of operation to add
policies and procedures for the removal of directors for cause
and to address conflicts of interest.
HB 1162 - Administrative rules (28-32-08.2,
28-32-03(5), 28-32-10(1), 28-32-18(2)). An administrative
agency shall attempt to make interim final rules known to every
person who the agency can reasonably be expected to be affected
by them. In addition to the existing notice requirements, an
agency adopting emergency rules shall also provide notice to the
chairman of the Administrative Rules Committee of the emergency
rules. The Legislative Council shall publish the notice and
emergency rules on its website. When an agency presents rules
for Administrative Rules Committee consideration, the agency
shall provide a fiscal note or a statement in its testimony that
the rules have no fiscal effect.
HB 1123 - Surplus lines insurance
(26.1-44-01, 26.1-44-01.1, 26.1-44-02, 26.1-44-03, 26.1-44-03.1,
26.1-44-04, 26.1-44-05, 26.1-44-06, 26.1-44-06.1, 26.1-44-08,
26.1-44-10, 26.1-44-11). This bill revised the law relating
to surplus lines insurance to conform to requirements of the
United States Nonadmitted and Reinsurance Reform Act of 2010 (NRRA).
The law now applies only to the placement of surplus lines
coverage, the regulation of surplus lines producers and the
taxation of surplus lines premiums if the insured's home state
is North Dakota. The new provisions address:
• Definition of home state
• Changes in qualifications of eligible surplus lines insurers
• Definition of exempt commercial purchasers and exemption from
due diligence search requirements
• Changes to the recordkeeping and reporting requirements of
surplus lines producers
• New consumer notice
• Taxation of multi-state policies
Federal law allows states to enter into a
compact to allocate premium tax on multi-state policies. This
bill adopts the Surplus Lines Insurance Multistate Compact (SLIMPACT)
to allocate among the states the premium tax paid to the
insured's home state. Ten states must adopt SLIMPACT before the
compact is implemented. This law became effective on April
HB 1160 - Annuity suitability (two new
sections to 26.1-34.2, 26.1-34.2-02, 26.1-34.2-03,
26.1-34.2-04). This bill is based on a recently-passed model
law of the National Association of Insurance Commissioners (NAIC).
It requires that in recommending to a consumer the purchase or
exchange of an annuity, the insurance producer or the insurer
must have reasonable grounds for believing that the
recommendation is suitable for the consumer, which includes
ensuring that the consumer has been reasonably informed of
various features of the annuity, such as the surrender period,
surrender charge, potential tax penalty, and expense fees. An
insurer is required to establish a supervision system that is
reasonably designed to achieve the insurer's and the insurer's
insurance producers' compliance with these annuity suitability
requirements. This law also requires every insurance producer
engaged in the sale of annuity products to complete a one-time,
four-hour training course to ensure that they are only
recommending annuities that are suitable for the consumer based
on the consumer's particular needs. The training must include
information on the topics set out in the bill and must be
completed by August 1, 2012. Insurers must verify that the
producer has completed the training. Satisfaction of
substantially similar requirements in another state will satisfy
HB 1175 - Rebating (26.1-04-03(8),
26.1-04-06, 26.1-25-16). This law allows a limited exception
to the state's anti-rebating laws. If the cost does not exceed
an aggregate retail value of $50 per person per year, an
insurance producer may give a gift, prize, promotional article,
logo merchandise, meal, or entertainment activity directly or
indirectly to a person in connection with marketing, promoting,
or advertising the business. The term "person" means the named
owner, or prospective client
or the spouse of any of these individuals, but the term does not
include a certificate holder, child, or employee of the named
insured, policy owner, or prospective client. An insurance
producer may give a gift card for specific merchandise or
services such as a meal, gasoline, or car wash but may not give
cash, a cash card, any form of currency, or any refund or
discount in premium. An insurance producer may not condition the
giving of a gift, prize, promotion article, logo merchandise,
meal, or entertainment activity on obtaining a quote or a
contract of insurance. An insurance producer may make a donation
in any amount to a nonprofit organization that is exempt from
federal taxation under Internal Revenue Code Section 501 (c)(3)
as long as the donation is not given as an inducement to obtain
a quote or a contract of insurance.
Health Care Reform Bills
HB 1125 - Health care reform enforcement (new
section to 26.1-02). This bill makes clear that the
Commissioner has the authority to administer and enforce the
provisions of the Patient Protection and Affordable Care Act (PPACA).
The bill also requires the Commissioner to provide regular
updates to Legislative Management during the 2011-12 interim and
submit any proposed legislation to Legislative Management for
consideration at the special session.
HB 1126 - Health care reform exchanges
(26.1-54). This bill requires that the Commissioner and the
Department of Human Services plan for the implementation of an
American health benefit exchange in North Dakota. The
Commissioner may seek federal grant funds for the planning and
implementation and adopt rules as necessary or desirable. The
bill also requires the cooperation of other state agencies to
ensure the success of the exchange. The bill also requires
regular updates to Legislative Management.
HB 1127 - Health care reform external review,
utilization review, and grievance procedures (26.1-03-01,
26.1-26.4-01, two new sections to 26.1-36, 26.1-36-44). This
bill requires that health insurers must provide a utilization
review (UR), grievance, and external review process that meets
the minimum requirements of PPACA and its implementing
regulations. If federal laws or rules relating to these
processes are amended, repealed, or otherwise changed, the
Insurance Commissioner shall adopt rules to ensure the process
is in compliance with and equivalent to the federal
requirements. The bill also provides that existing UR law
applies only to grandfathered plans unless an insurer decides to
apply PPACA requirements to a grandfathered plan. For
independent external review, the bill provides application only
to grandfathered plans. The bill also requires the Commissioner
to provide regular updates to Legislative Management and submit
proposed legislation at the special session.
HB 1165 - Health care reform insurance
coverage not required (new section to 26.1-36). This bill
provides that an individual cannot be required to obtain or
maintain individual health insurance coverage, with some
exceptions, unless required by a court. It is a response to the
individual coverage mandate of PPACA.
HB 1252 - Health care reform study. This
bill requires the Legislative Council to monitor the impact of
PPACA, rules adopted by federal agencies as a result of that
legislation, and any amendments to that legislation.
HB 1267 - Health care reform in special
legislative session. This bill includes health care reform
as a topic to be addressed in a special legislative session in
November (along with redistricting).
HB 2309 - Health care reform PPACA likely
unconstitutional (new section to 54-03). This bill declares
that PPACA is likely not authorized by the U.S. Constitution,
and that the Legislative Assembly shall consider enacting any
measure to prevent its enforcement.
HCR 3015 - Health care reform sovereignty
reaffirmed. This concurrent resolution reaffirms the state's
sovereignty under the 10th Amendment to the Constitution and
demands the federal government halt its practice of assuming
powers and imposing mandates on the states for purposes not
enumerated in the Constitution.
HCR 3016 - Health care reform repeal.
This concurrent resolution urges Congress to repeal PPACA.
SCR 4005 -Impact of PPACA on CHAND. The
Comprehensive Health Association of North Dakota (CHAND) is the
high risk pool currently in place in North Dakota. Under PPACA,
beginning in 2014, everyone will be eligible to purchase health
insurance, so the necessity of the CHAND program is uncertain.
This concurrent resolution directs a study of the impact of
PPACA on CHAND, with a report to be provided to Legislative
Management prior to when the 63rd
Life & Health (Non-Health Care Reform Bills)
HB 1135 - Trustees have insurable interest
(59-09-13). This bill created ND.C.C.
59-09-13, which clarifies that a
trustee has an insurable interest in the life of another if the
other person was the person who settled or created the trust, or
if the person whose life was insured was a person for whom the
settlor (the person who created the trust) could have obtained
life insurance. The proceeds of the life insurance must be
primarily for the benefit of trust beneficiaries who have an
insurable interest in the life of the insured or who are closely
related to the subject of the life insurance. The law is a
product of the National Conference of Commissioners on Uniform
HB 1160 - Annuity suitability (two new
sections to 26.1-34.2, 26.1-34.2-02, 26.1-34.2-03,
26.1-34.2-04). This law is based on a recently passed
National Association of Insurance Commissioners (NAIC) model law
and requires that in recommending to a consumer the purchase or
exchange of an annuity, the insurance producer or the insurer
must have reasonable grounds for believing that the annuity is
suitable for the consumer, which includes ensuring that the
consumer has been reasonably informed of various features of the
annuity, such as the surrender period, surrender charge,
potential tax penalty, and expense fees. An insurer is required
to establish a supervision system that is reasonably designed to
achieve the insurer's and the insurer's insurance producers'
compliance with these annuity suitability requirements. This law
also requires every insurance producer engaged in the sale of
annuity products to complete a one-time, four-hour training
course to ensure that they are only recommending annuities that
are suitable for the consumer based on the consumer's particular
needs. The training must include information on the topics set
out in the bill and must be completed by August 1, 2012.
Insurers must verify that the producer has completed the
training. Satisfaction of substantially similar requirements in
another state will satisfy these requirements.
SB 2075 - Excess assets in pre-need funeral
service contracts (50-24.1-02.3). This law provides that any
amounts in a pre-need funeral service contract that are not used
for funeral or burial expenses must be returned to the estate of
a Medicaid recipient, and are subject to recovery by Medicaid.
SB 2237 - Domestic abuse (26.1-04-03(7)).
This law prohibits an insurer's consideration of an individual's
history or status as a victim of domestic abuse in underwriting
a risk or in paying a claim.
SB 2276 - Vaccine fund (new section to 23-01).
This law created a program through which the state purchases
vaccines through the federal vaccine purchasing contract which
then furnishes the vaccines to public health units. A public
health unit that receives the vaccines must administer them to
program-eligible children and may not bill an insurer for the
cost of the vaccine but may charge an administration fee.
Property & Casualty
HB 1142 - Agritourism liability (new chapter
to Title 53). A new chapter of the North Dakota Century Code
was created that provides that an agritourism participant
assumes all inherent risks and permits agritourism operators the
ability to use the defense of assumption of risk (for inherent
risks) if registered with the Division of Tourism. Registration
is effective for five years. Notice must be posted in a
conspicuous place on the operator's premises and in the
agritourism operator's contract that the operator is not liable
for any injury to or for the death of a participant if the
injury or death results from inherent risk.
HB 1174 - Medical records and bills cost
(23-12-14,26.1-41-12). This law sets new caps on what a
medical provider may charge for electronic copies of records and
bills. A person may not charge more than $20 for the first 25
pages and 75 cents per page for every page beyond 25 pages for
providing a copy of medical records or medical bills in paper or
facsimile format to a basic no-fault insurer. If providing an
electronic, digital, or other computerized format, a person may
charge $30 for the first 25 pages and 25 cents per page after 25
pages for providing a copy of medical records or medical bills
to a basic no-fault insurer. This charge includes any
administrative fee, retrieval fee, and postage expense.
HB 1195 - Texting and driving (39-06.1-06(2),
39-06.1-09, new section to 39-08). This law prohibits
texting while driving. It provides that a driver who is part of
traffic may not use a wireless communications device to compose,
read, or send an electronic message. This prohibition includes
email, text, and instant message.
HB 1256 - Graduated drivers license system
(39-01-01, 39-06-03(1), 39-06-04, 39-06-17, 39-06.1-09,
39-06.1-10(3)(b), new section to 39-08). Beginning January
1, 2012, this law provides that an individual who is not yet 18
years of age is not eligible for a license until that individual
has had a learner's permit issued for at least 6 months or at
least 12 months if under age 16. A restricted license is issued
if the minor has successfully completed an approved driver's
education course and has 50 hours of supervised driving in
various driving conditions and situations that include night
driving; driving on gravel, dirt, or aggregate surface road;
driving in both rural and urban conditions; and winter driving
conditions. Drivers with a restricted license may not drive
between sunset or 9:00 p.m., whichever is later, and 5:00 a.m.
with exceptions given for work, school, or religious activity.
Individuals under age 18 may not operate an electronic
communication device to talk, compose, read, or send an
electronic message while driving except in emergencies or to
prevent a crime.
HB 1308 - Rental car insurance secondary
(26.1-40-17). This law provides that a person's own auto
policy is primary when a vehicle is rented in North Dakota.
Previously, the rental car company's insurance was primary.
HB 1452 -Injury to trespassers (new). This law
provides immunity for landowners for injury to trespassers with
exceptions. Exceptions include willful injury, knowledge of the
trespasser's presence and artificial attractive nuisance.
SB 2062 - Certificates of insurance (new
chapter to Title 26.1). This law relates to property and
casualty certificates of insurance, requiring filing of forms
with the Commissioner and setting parameters for use of
certificates of insurance for producers. Producers may sign only
certificates of insurance that are filed and approved by the
Commissioner. A person may not demand, require, or issue a
certificate of insurance that contains any false or misleading
information concerning the policy of insurance to which the
certificate makes reference. Producers may not knowingly prepare
or issue a certificate that purports to alter, amend, or extend
the coverage provided by the policy.
SB 2222 - Crop insurance proposals,
development grants (new). This bill creates a new chapter
that creates a crop insurance development board consisting of
seven individuals to assess the feasibility and desirability of
proposals submitted by individuals and public and nonpublic
entities pertaining to the development and implementation of
crop insurance instruments. The board may award grants to assist
with future actuarial and development costs.
SB2258 - Child support data match (new
section to 14-09, 26.1-02-28, 34-15-03, 34-15-04, new section to
35-34,35-34-02,35-34-03,35-34-04, 35-34-06(1), 35-34-09,
35-34-10). Insurance companies may coordinate with the
Department of Human Services to exchange insured information for
the purpose of liens against claimants owing child support. Some
of the sections of this Act become effective on January 1, 2012,
and others become effective on August 1, 2013.
SB2295 - Recreational immunity
(53-08-01,53-08-02,53-08-03(2)). This bill clarifies a
landowner's duty of care for recreational events. Subject to
certain exceptions, a land owner owes no duty to keep premises
safe for recreational purposes regardless of the location and
nature of the recreational purposes and whether the entry or use
by others is for their own recreational purposes or is directly
derived from the recreational purposes of other persons, or to
give any warning of a dangerous condition, use, structure, or
activity on such premises to persons entering for such purposes.
Does not apply to persons entering land to provide goods or
services, and does not apply to for-profit business ventures
that directly or indirectly invite members of the public onto
the premises for commercial purposes.
SB2346 - Restricted licenses for minors
(39-06-17(3)). This bill provides that a minor with a
restricted license or permit may drive not only a parent's car
but also a grandparent's, sibling's, aunt's, or uncle's car. The
parent, guardian, grandparent, sibling, aunt, or uncle at all
times is responsible for any damages growing out of the
negligent operation of the car by the child.
by Marc Siverson, Chair
We just had our first Membership conference Wednesday 8/3/11 at
8:00 am. About 75% of the membership committee were on the
line. I thought we hit upon a lot of ideas that we will enlarge
upon before our next conference call on Wednesday 9/7/2011 at
Some of the tentative plans discussed included:
Making a brochure to show what the ND NAIFA
chapter succeeded with the state legislative session. This
may show prospects what we can accomplish.
Set times in each community to have 4-5 members
visit prospects at their place of business and make a splash
with some giveaways, brochures, information and letting them
know we need them to help educate politicians on some of the
issues on the forefront.
All members will read the online Academy
sessions for input.
Look for the first step to get ball rolling
A pretty good start and discussion for a first
meeting. We’ll have more positive experiences to report next
by Keith Phillips, Chair
By now, I am sure that most of you
have heard of LILI. However, I also believe that there are many
misconceptions as to what LILI really is. Most of you have
formed your opinions on the LILI class from what you have heard.
Unfortunately, this can be misleading. The only way to really
understand this class, is to participate on your own. I think
one of the problems, is the perception that taking LILI is like
taking a magic pill that miraculously turns you into this
amazing person. Well, for a few, that might be partially true.
On the flip side, there may be no truth to it what so ever. As
the saying goes, you only get out of something what you put into
it. This class does offer a great opportunity for you to grow
both personally and professionally. But, you have to put in the
effort to realize the rewards of the class.
I would encourage you to fgo onto the NAIFA web site and read
about the LILI opportunities. Also, you can contact me, Nancy in
the state office, or Rene Haug, the moderator of the next
class. Any of us would be happy to discuss LILI with you.
I would hope that each association take the time to identify
potential candidates and forward there name to us. We can
contact them and fill them in on the details and answer any
questions that they may have.
The ideal number of students for a class is 10. The class is
held one day a month for 6 months. The place and time will be
determined by those who enroll in the class.
I challenge and encourage you to take the " LILI Experience"
NAIFA-North Dakota - 1811 East Thayer Avenue - Bismarck, ND 58501 (701) 258-9525