26.1-27 Administrators of Life or Health Insurance or Annuities
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<![CDATA[CHAPTER 26.1-27ADMINISTRATORS OF LIFE OR HEALTH INSURANCE OR ANNUITIES26.1-27-01. Administrator defined. In this chapter, "administrator" means any personwho collects charges or premiums from, or who adjusts or settles claims on, residents of this<br>state in connection with life or health insurance coverage or annuities other than:1.An employer on behalf of its employees or the employees of one or more subsidiary<br>or affiliated corporations or limited liability companies of the employer.2.A union on behalf of its members.3.An insurance company, health maintenance organization, or nonprofit health service<br>corporation either licensed in this state or acting as an insurer with respect to a<br>policy lawfully issued and delivered by it in and pursuant to the laws of a state in<br>which the insurer was authorized to do an insurance business or prepaid health care<br>plan, including its sales representatives licensed in this state when engaged in the<br>performance of their duties as such.4.A life or health insurance producer licensed in this state, whose activities are limited<br>exclusively to the sale of insurance.5.A creditor on behalf of its debtors with respect to insurance covering a debt between<br>the creditor and its debtors.6.A trust, its trustees, agents, and employees acting thereunder, established in<br>conformity with 29 U.S.C. 186.7.A trust exempt from taxation under section 501(a) of the federal Internal Revenue<br>Code of 1954, as amended, its trustees, and employees acting thereunder, or a<br>custodian, its agents and employees acting pursuant to a custodian account which<br>meets the requirements of section 401(f) of the federal Internal Revenue Code of<br>1954, as amended.8.A financial institution subject to supervision or examination by federal or state<br>banking authorities.9.A credit card issuing company that advances for and collects premiums or charges<br>from its credit card holders who have authorized it to do so, provided the company<br>does not adjust or settle claims.10.A person who adjusts or settles claims in the normal course of practice or<br>employment as an attorney at law, and who does not collect charges or premiums in<br>connection with life or health insurance coverage or annuities.26.1-27-01.1. Pharmacy benefits manager. A pharmacy benefits manager, as definedunder section 26.1-27.1-01, is an administrator for purposes of this chapter.26.1-27-02. Insurer defined. In this chapter, "insurer" means any person, including aself-insurer, engaged as a principal in the business of annuities or life or health insurance.26.1-27-03. Certificate of authority required - Penalty.1.A person, including a person who directly or indirectly underwrites, collects charges<br>or premiums from, or adjusts or settles claims on residents of this state in<br>connection with life, annuity, or health coverage provided by a self-funded plan, may<br>not act as or hold oneself out to be an administrator in this state, for the kinds of<br>business for which the person is acting as an administrator, without a certificate ofPage No. 1authority issued by the commissioner. Any person violating this subsection is guilty<br>of a class C felony.2.All applications must be accompanied by a filing fee of one hundred dollars.3.The commissioner shall issue a certificate unless the commissioner after due notice<br>and hearing determines that the administrator is not competent, trustworthy,<br>financially responsible, or of good personal and business reputation, or has had a<br>previous application for an insurance license denied for cause within five years.4.The administrator shall pay an annual renewal fee of fifty dollars to maintain the<br>certificate.5.After notice and hearing, the commissioner may revoke a certificate or fine the<br>administrator not more than ten thousand dollars, or both, or the commissioner may<br>suspend a certificate, or fine the administrator not more than five thousand dollars,<br>or both, upon finding that either the administrator violated section 26.1-27-05 and<br>subsection 4 of section 26.1-27-06 and also violated subsection 1, 2, or 3 of section<br>26.1-27-06orsection26.1-27-07,26.1-27-08,26.1-27-10,26.1-27-11,or26.1-27-12,ortheadministratoris not competent, trustworthy, financiallyresponsible, or of good personal and business reputation.26.1-27-03.1.Bond or insurance requirement. An administrator that administers orwill administer self-insured plans in this state shall maintain a surety bond or proof of insurance<br>satisfactory to the commissioner for the use and benefit of the commissioner for covered persons<br>who have remitted premiums or insurance charges or other moneys to the administrator in the<br>course of the administrator's business in the greater of the following amounts:1.One hundred thousand dollars; or2.Ten percent of the aggregate total amount of administered coverage under the plans<br>handled in this state.26.1-27-04. Waiving of registration requirements. Repealed by S.L. 2005, ch. 268, </p>
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