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North Dakota Clarifies Notice and Valued Policy Rules

April 19, 2015 AAIS Advisory notice

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North Dakota recently enacted three laws that address certain notice requirements and loss settlement valuation under the state's valued policy law.

  • One law clarifies that insurers can use electronic means to provide documents to policyholders, but that electronic means may not be the sole method for doing so.
  • A second law establishes that a certificate of mailing or a specified tracking notice by the U.S. Postal Service can serve as proof of mailing to an insured.
  • A third law establishes settlement valuation under the state's valued policy law to be the lesser of the full value of the policy, or the actual cash value or replacement cost of the property, depending on the policy provisions applicable to the structure. The provisions refer to losses that occur within 90 days of (1) policy issuance or (2) an increase in coverage of 25% or greater requested that is requested by the insured.

The laws take effect Aug. 1, 2015. AAIS will be informing affiliates in affected lines by bulletin of upcoming filing action to address certain changes under the laws.


AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information. 

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