26.1-38.1-03. Creation of the association

26.1-38.1-03. Creation of the association

1. There is created a nonprofit legal entity to be known as the North Dakota life and

health insurance guaranty association. All member insurers must be and remain

members of the association as a condition of their authority to transact insurance or a

health maintenance organization business in this state. The association shall perform

its functions under the plan of operation established and approved under section

26.1-38.1-07 and shall exercise its powers through a board of directors established

under section 26.1-38.1-04. For purposes of administration and assessment, the

association shall maintain two accounts:

a. The life insurance and annuity account that includes the following subaccounts:

(1) Life insurance account;

(2) Annuity account, which includes annuity contracts owned by a governmental

retirement plan or its trustee established under section 401, 403(b), or 457

of the United States Internal Revenue Code, but otherwise excludes

unallocated annuities; and

(3) Unallocated annuity account that excludes contracts owned by a

governmental retirement benefit plan or its trustee established under

section 401, 403(b), or 457 of the United States Internal Revenue Code.

b. The health account.

2. The association shall come under the immediate supervision of the commissioner and

is subject to the applicable provisions of the insurance laws of this state. Meetings or

records of the association may be opened to the public upon majority vote of the board

of directors of the association.