Athene Legal and Compliance Updates: North Dakota

The following information will help you stay current on your responsibilities as an Athene producer. Remember, it is your obligation to know the requirements of your Athene contract, as well as the laws and regulations of any state in which you conduct business.

North Dakota: Rebating Law Updates — North Dakota has amended sections of their insurance code that affect unfair trade practices and the use of rebates in the insurance business. This revised code goes into effect August 1, 2021. 

Applies to: All producers and brokers licensed to write business in North Dakota.

Summary: North Dakota has amended sections of their insurance code covering unfair trade practices and the use of rebates in the insurance business. This revised code goes into effect August 1, 2021.

Key takeaway: While North Dakota prohibits rebating any premium payments or providing valuable consideration or inducement to purchase insurance not specified in the contract, the law has been updated to allow for certain inducements including the following:

• If the cost does not exceed $100/year, an insurance producer may give any of the following either directly or indirectly to a person in connection with marketing, promoting, or advertising the business:
  • Gifts
  • Prizes
  • Promotional article
  • Logo merchandise
  • Meals
  • Entertainment Activity
     

• An insurance producer may also conduct a raffle or drawing, so long as the following criteria is met:
  • There is no financial cost to an entrant to participate
  • The drawing/raffle does not obligate the entrant to purchase insurance
  • The prizes are not valued in excess of a reasonable amount determined by the commissioner
  • The drawing is open to the public