North Dakota: premium trust account rules
What North Dakota requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 26.1-26.3-03; 26.1-27-08; 26.1-26-42; 26.1-26-50
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity. All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers must be held by the administrator in a fiduciary capacity.
Penalties for diversion
The commissioner may suspend, revoke, place on probation, or refuse to renew any license if, after notice and hearing, the commissioner finds the licensee improperly withheld, misappropriated, or converted to one’s own use any money received during the course of business belonging to policyholders, insurers or beneficiaries. In addition to or in lieu of a change in licensure, the commissioner may, after a hearing, impose a fine not to exceed $10,000 for each violation.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a North Dakota trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with North Dakota's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.