Surety Bond Required for North Dakota Discount Medical Plan Organizations

Surety Bond Required for North Dakota Discount Medical Plan Organizations

The enactment of North Dakota Senate Bill 2102 on August 1, 2019 amends the North Dakota Century Code as it pertains to North Dakota discount medical plan organizations. This bill adds chapters 26.1-53.1 to the Code and repeals the previous chapters 26.1‑53.

What is changing with the legislation?

The updated legislation creates the requirement for North Dakota discount medical plan organizations to register with the South Dakota Division of Insurance and post at least a $35,000 surety bond.

What does a North Dakota discount medical plan organization bond do?

This bond will protect the financial interests of any member of a discount medical plan at the discretion of the Insurance Commissioner. The current commissioner is Jon Godfread, an advocate for consumer awareness regarding government policy and regulation. A copy of the bond must be submitted to the Legislative Assembly account. The assembly is made up of the North Dakota Senate and House of Representatives.

How much does a surety bond cost for discount medical plan organizations?

The cost of a surety bond for a discount medical plan organization is subject to review by an underwriter who will look at the credit of the organization owner or owners to determine the cost. Applicants in good financial standing are typically approved for 1-3% of the total bond amount, meaning they will only have to pay between $350-750 for a $35,000 surety bond.

How to get a Discount Medical Plan Organization License

Besides filling out a license application, additional documents and information are required before an application will be considered to be complete.

  • Fill out a discount plan organization application
    • The names and information of officers, board members, trustees, or members of any other board or committee are required on the application
    • Attach NAIC biographical affidavits for all officers and directors
      • Information required for the affidavits includes employment history, education, personal information, and character information
    • Include a copy of form contract between organization and officers and directors
  • Include a copy of your surety bond in an amount not less than $35,000
  • Include a certificate from the North Dakota Secretary of State showing compliance with the corporation laws
  • Include a check for $500 payable to the North Dakota Insurance Commissioner
  • Include a copy of all marketing materials to be used in this state, a description of complaint procedures, a copy of cancellation and refund policy
  • Attach the name and address of the person who will be in charge of the business under said license

Need a surety bond for your organization?

The experts at SuretyBonds.com have years of experience issuing surety bonds nationwide, meaning they know what it takes to get you the bond you need while saving you time and money. Visit SuretyBonds.com to apply online in minutes, or give us a call at (800) 308-4358 to speak with a surety expert.

About the Author

Rhaea Lehman
Rhaea is a sophomore at the University of Missouri studying German and Communications. She is a member of the marketing department and outreach team for SuretyBonds.com, a leading provider of online bonding for clients nationwide.