26.1-05-07.1. Approval of the domestic insurer - Premium waiver

26.1-05-07.1. Approval of the domestic insurer - Premium waiver

1. An insurer organized under the laws of another state which is admitted to do business

in this state for the purpose of writing insurance may be a domestic insurer by

complying with the requirements of law relative to the organization and licensing of a

domestic insurer of the same type in this state and by designating its principal place of

business at a place in this state. For purposes of this section, a company is deemed to

have designated its principal place of business at a place in this state if the company

locates its home office in this state. If an insurer seeks to become a domestic insurer

but is unable to designate its principal place of business in this state, the insurer may

place on deposit with the Bank of North Dakota, upon the approval of the

commissioner, a sum established by the commissioner, which may not be withdrawn

without the approval of the commissioner. An insurer that complies with this subsection

is entitled to the certificates and licenses to transact the business of a domestic insurer

in this state and is subject to the authority and jurisdiction of this state.

2. After an insurance company has redomesticated to this state and located and

maintained its home office in this state, the insurance company is allowed a credit

against the premium tax imposed and due under section 26.1-03-17 for an amount

equal to the premium tax paid in this state during the first two years as a domestic

company in this state. This credit must be used in the third and fourth years following

the company's redomestication to this state and may not be carried over beyond the

fourth year.