N.D. Insurance Reserve Fund chief defends operations after market-conduct exam; committee presses on claims, reinsurance and Fire and Tornado Fund move

BISMARCK, N.D. — The House Appropriations Government Operations Division heard testimony on House Bill 1010 and a market-conduct examination of the North Dakota Insurance Reserve Fund on a day when lawmakers pressed the fund nd the Insurance Commissioner about claims handling, underinsured public properties and a pending transfer of the Fire and Tornado Fund.

The hearing matters because the reserve fund insures cities, counties, school districts and other political subdivisions across North Dakota; problems in claims practice or oversight can affect local budgets and taxpayers, lawmakers said.

Keith Peach, chief executive officer of the North Dakota Insurance Reserve Fund, told the committee the NDRF is a member-owned nonprofit established in 1986 to meet political subdivisions—overage needs. "The Naderf is not required to exist statutorily or constitutionally. We operate independently as a self insurance pool, but are regulated by the North Dakota Insurance Department, similar to insurance companies," Peach said. He told lawmakers the pool has saved members and taxpayers about $150,000,000 since its founding and has had only one general rate increase in the last 25 years.

The Insurance Department—xaminer focused…