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Committee recommends passage of bill raising several insurance department fees; bill projected to add roughly $1.4 million to special fund
Summary
House Bill 11‑23 would raise company renewal and producer fees charged by the North Dakota Insurance Department; the committee voted 5–0 to give a do‑pass recommendation on the re‑engrossed bill.
The Senate Industry and Business Committee recommended passage of re‑engrossed House Bill 11‑23, a bill that would raise multiple fees charged by the North Dakota Insurance Department and is projected by department staff to generate roughly $1.4 million in additional special‑fund revenue if enacted.
John Arnold, deputy insurance commissioner, told the committee the department reviewed fees charged by other states and found renewal and annual fees were notably lower in North Dakota. "If enacted, we estimate that the proposed fee increases will generate approximately $1,400,000 in additional revenue for our special fund," Arnold said.
Under the bill as presented to the committee, company renewal‑related charges would increase from a combined total of $155 to $300 per year (the package includes the renewal fee, an annual statement fee and an abstract fee). County mutuals would have a revised renewal fee set at $250. The producer appointment fee would rise from $10 to $25; department estimates indicate that adjustment alone would generate an estimated $1.3 million per biennium. The bill also proposes increases for life‑settlement broker and provider fees and higher charges for copies and articles.
Arnold said the department conducted outreach to industry stakeholders during 2024 and did not receive substantive opposition to the revised fee schedule. He told the committee the department’s recent takeover of the state fire marshal’s office and a higher distribution to the North Dakota Firefighters Association have contributed to cash‑flow pressures for the department’s special fund, which prompted the fee review.
Committee members asked about timing and whether the department will review fees more frequently going forward; Arnold said the department intends to monitor fees and may review them on a more regular basis.
Senator Kessel moved a due‑pass on the re‑engrossed House Bill 11‑23; Senator Fehm seconded the motion. The clerk called the roll and the committee recorded a 5–0 do‑pass recommendation: Senators Klein, Kessel, Chairman Barta, Vice Chair Boehm and Senator Inge voted aye.
Ending: The committee’s recommendation advances the re‑engrossed bill; the department estimates the fee changes will increase special‑fund receipts if enacted, and officials said they will continue interim outreach to stakeholders.
