Insurance department proposes broad property‑market reforms; agents and insurers raise concerns over rebating carve‑out and "large commercial" definition

The Senate Industry and Business Committee heard competing testimony on Senate Bill 23‑74, a package of property‑market reforms developed by the Insurance Department after a contracted study. Commissioner John Godfrey told the panel the bill aims to make North Dakota more competitive in a tightening market by allowing greater flexibility for large commercial policyholders, modernizing surplus lines rules, clarifying claims processes and recognizing alternative risk mechanisms such as risk retention groups (RRGs) and purchasing groups (PGs).

Why it matters: supporters say the changes will keep North Dakota businesses from being priced out of insurance markets and speed access to specialized coverages; critics warn that some provisions—most notably a proposed exemption from anti‑rebating rules for so‑called "large commercial risks"—could undermine consumer protections and be open to abuse, particularly given how the bill defines "large commercial." The committee heard multiple stakeholders urging additional drafting and higher thresholds before the bill advances.

Key proposals and department rationale: Commissioner Godfrey said the bill treats large commercial policyholders as "fundamentally different" from individual consumers because of size, bargaining power and risk‑management sophistication. Major elements outlined by the department…