A discount plan organization must be licensed by the North Dakota Insurance Commissioner in order to offer discount plans in North Dakota (N.D.C.C. § 26.1-53.1).
Discount plans are business arrangements or contracts in which a person, in exchange for fees, dues, charges, or other consideration, offers members the access to providers of medical or ancillary services and the right to receive discounts on medical or ancillary services provided under the discount plan from those providers.
A legal entity seeking licensure as a discount plan organization must submit the following:
- Discount Plan Organization Application (SFN 61675);
- Certificate from the North Dakota Secretary of State showing compliance with the corporate laws of North Dakota, if applicable;
- $500 Application fee, made payable to the Commissioner;
- National Association of Insurance Commissioners (NAIC) Biographical Affidavit (Form 11) for all Officers and Directors;
- Copy of Form Contract between the Organization and Officers and Directors;
- All marketing materials to be used in this state, send to email@example.com;
- Description of complaint procedures;
- Copy of cancellation and refund policy
- Agent for Service of Process form (SFN 8330);
- Copy of surety bond in applicant’s name in an amount not less than $35,000 or the completed Surety Bond of Discount Plan Organizations form (SFN 61702);
- Name and address of person who is to have charge of the business under the license.
The North Dakota Insurance Department will issue a license if the application is approved. An application may be filed at any time throughout the year. The application and fee should be sent to the Department.
A discount plan organization must renew its license on or before March 1 of each year by submitting a $250 annual renewal fee made payable to the North Dakota Insurance Commissioner and the annual report prescribed by N.D.C.C. § 26.1-53.1-23.
A written notification of any administrative actions taken against the organization must be sent to the Department in a timely manner. The notification should include a copy of the action.