Insurance budget approved; committee adds reporting requirement on NDERF activity

The Appropriations Committee recommended a do-pass on House Bill 1010, the insurance department budget, and adopted an amendment that adds several reporting provisions, one-time equipment purchases for the Fire Marshal and language requiring the department to accept federal grants and report to OMB and legislative council as funds become available.

Representative Meyer presented the insurance budget and said it adds funding for base payroll changes, a 3-and-3 salary/benefit adjustment, and a $90,000 one-time request from the Insurance Regulatory Trust Fund for an $80,000 portable x-ray machine and emergency radios for the Fire Marshal. The amendment also added a reporting requirement (section 6) so the department will provide a comprehensive report about NDERF activity, including claims history and other summary information, to the legislature.

Committee members raised concerns and asked questions about NDERF (the political subdivision risk pool). Representative Meyer said the director of the fund, Keith Peach, had appeared before the committee in a prior meeting. Representative Wagner and others discussed the fund's role: Wagner described NDERF as governed by political subdivisions and noted its risk-mitigation functions (training and mitigation programs) and the fund's function to hire outside counsel and pursue litigation when necessary. Committee members noted the insurance department regulates NDERF like any other insurer and that the fund is self-funded through political-subdivision premiums.

Representative Meyer moved the amendment (25.0154.001); Representative Munson seconded. The amendment was adopted. Meyer then moved House Bill 1010 as amended; the committee recommended a do-pass and the bill will proceed to the floor. Members asked for continued transparency on complaints and litigation trends; the committee discussion included a cited figure from departmental correspondence that over a 10-year period the insurance office had logged 27 complaints against NDERF out of roughly 20,000 claims.

Why it matters: The amendment adds administrative reporting and one-time equipment purchases for the Fire Marshal and formalizes a mechanism for the legislature to receive regular reports about NDERF activity, claims trends and complaints. Committee members flagged concerns about litigation costs and outside counsel usage, and requested continued oversight reporting to track claims handling and complaint trends.