North Dakota Life Insurance Policy Requirements

North Dakota law imposes specific requirements on life insurance policies sold in the state under Title 26.1 of the North Dakota Century Code. These requirements protect consumers and ensure policy standardization.

Regulatory Authority

The North Dakota Insurance Department regulates all insurance activities in the state:

• Headed by the Insurance Commissioner
• Reviews and approves policy forms
• Licenses insurance producers
• Investigates consumer complaints
• Enforces insurance laws and regulations

Free Look Period

North Dakota provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: North Dakota follows the standard 10-day free look period for life insurance policies.

Incontestability Clause

North Dakota requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements
• Exceptions: Fraud, non-payment of premiums
• Protects beneficiaries from claim denials based on application errors

North Dakota-Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Material fraud may still be contested in certain circumstances

Suicide Clause

North Dakota limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period may apply
• Benefits limited to return of premiums if death is within exclusion period

Beneficiary Protections

North Dakota has specific beneficiary protection laws:

Unclaimed Life Insurance Benefits

North Dakota requires insurers to:

• Cross-check policies against the Social Security Death Master File
• Make reasonable efforts to locate beneficiaries
• Initiate claims process when death is confirmed
• Cannot charge fees for locating beneficiaries

Unclaimed Property

If beneficiaries cannot be found:

• Death benefits are not forfeited
• Must be reported as unclaimed property to the state
• Beneficiaries can still claim from the state

Policy Delivery Requirements

North Dakota requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy summary
• Receipt should be documented
• Electronic delivery permitted with consent

Grace Period

North Dakota life insurance policies must include:

Reinstatement Rights

North Dakota policyholders have reinstatement rights:

• May reinstate within 3 years of lapse
• Must provide evidence of insurability
• Must pay back premiums with interest
• New contestability period may begin

Standard Policy Provisions

North Dakota requires these standard provisions in life insurance policies:

• Entire contract clause
• Misstatement of age adjustment
• Grace period
• Incontestability clause
• Suicide exclusion (2-year maximum)
• Reinstatement provisions