Insurance Department says omnibus amendments coming for SB 2374; sections likely removed

Deputy Insurance Commissioner John Arnold updated the Senate Industry and Business Committee on the department’s work to revise Senate Bill 2374 and to incorporate stakeholder feedback.

Arnold said the department has received input from “all but one” stakeholder group and is consolidating multiple proposed edits into a single omnibus amendment. He told the committee, “we are to have an amendment to you by Monday, so we can get this out of committee by next Wednesday.”

Arnold said two sections of the bill—identified in committee discussion as sections 2 and 3—relate to accreditation standards and are likely to be removed after further consultation with the National Association of Insurance Commissioners (NAIC). Other items under review include the statutory definition of “large commercial risk,” proposed language related to rebating, and surplus lines provisions. Arnold said the department is working closely with trade groups; he named the Professional Insurance Agents (PIA) and APCA as parties raising concerns that staff intend to address.

Industry representatives told the committee they are actively engaged in drafting suggested language. John Ward of the Association of North Dakota Insurers said Chris Owen had proposed language for the bill’s surplus-lines section and that the association planned to provide language to the department by Monday. Arnold said his team anticipates continuing work that afternoon and the next morning to finalize the omnibus amendment.

The committee received no formal motions on SB 2374 during the session; members asked for the promised amendment and scheduled further committee work later in the day and the following week.

The department’s next steps include circulating the omnibus amendment to the committee on Monday and returning to the committee in time for subsequent action.