Committee advances producer-licensing cleanup bill to allow electronic service, adjust public-adjuster requirements

The Senate Industry and Business Committee voted to give a due-pass recommendation to Senate Bill 2125, an agency bill from the North Dakota Insurance Department that updates producer licensing language, authorizes electronic service of process, adjusts public-adjuster licensing rules, and aligns state code with national producer licensing model standards.

Janelle Middlestead, producer licensing division director, said the bill is a ‘‘cleanup’’ and modernization measure that aligns North Dakota’s code with the National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act (referred to in testimony as the PLMA) and eases administrative burden by allowing electronic mailing addresses and service in place of certified mail for certain licensing correspondence.

Middlestead told the committee the bill would enable the department to use the National Insurance Producer Registry’s (NIPR) electronic application to align a number of line-of-authority names (for example, changing crop hail to crop). Key changes Middlestead described include allowing the commissioner to use electronic means for service of process for resident and nonresident producers; requiring producers to monitor their designated electronic mailing address; authority to revoke a nonresident license if the producer’s home-state license is not renewed; increasing the public-adjuster renewal notice period from 60 to 90 days; removing a late-renewal grace period for public adjusters; and requiring a surety bond rather than proof of insurance for public adjusters.

Deputy Commissioner John Arnold added that the bill consolidates fee language elsewhere in state law (cited as section 26.101) and that the fiscal impact is minimal: testimony noted an estimated $300 shift affecting one public adjuster under the fee changes.

Committee members asked for clarity about the definition of “producer” (Middlestead said a producer is anyone licensed to sell insurance in North Dakota, including agents for life, health, property, casualty and surplus lines). Vice Chairman Behm and other senators noted the bill is largely alignment and clarification rather than a substantive policy change. After brief discussion the committee moved the bill forward with a due-pass recommendation.

The committee recorded aye votes in the roll call for the due-pass recommendation; the roll call recorded Senator Castle, Chairman Barta, Vice Chairman Behm and Senator Engott as voting aye. The committee closed the hearing and will carry the bill forward for further processing.