North Dakota Life Insurance

In this article...
  • Buy a North Dakota life insurance with peace of mind; choosing a policy is easier when you're aware of the mandated provisions and consumer-protection rules.

Are you considering your options for life insurance in North Dakota? Compare each policy to the state-mandated provisions. The more you know, the easier it is to find an above-board company to entrust with your beneficiaries' future prospects.

North Dakota Life Insurance Rules and Specifics

Title 26.1 of the North Dakota Century Code governs the activities of insurance companies and insurance agents in North Dakota. The North Dakota Insurance Department enforces these laws.  

State law guarantees you the following benefits:

  • Free look period: North Dakota has one of the longest free look periods in the United States. As a resident, you have 20 days to determine whether a life insurance policy is the right fit. According to section 33-02.1, you're guaranteed a refund as long as you return the certificate or policy to the company. Your provider must notify you of this 20-day period on the first page of your policy.
  • Incontestability: When you pay all premiums for 24 months, this provision prevents the provider from denying a death benefit to your chosen beneficiaries. This rule stands unless you fail to meet payment obligations. If there's a chance you'll serve in the military in wartime, make sure to read the terms carefully; incontestability doesn't stand if you violate those terms.
  • Dividends: When you've had an eligible North Dakota life insurance policy for three years, you're entitled to dividends. If the company has a surplus on your policy — this depends on profits, investment returns and other factors — you can get a cash dividend. Providers may also let you use the dividends to pay premiums, buy policy additions or add to your policy's credit. Dividends aren't guaranteed and are not available on all policies; you can check the company's credit rating and past performance when making a decision.
  • Grace period: North Dakota's grace period rule becomes active after you make your first premium payment. If you can't make a future payment by the due date, you have 31 days to catch up. You remain covered throughout the grace period.
  • Cash surrender value: This is the amount of money you'll get if you end a life insurance policy before it matures or you die. State law dictates the amount. If you decide to take out a loan against your policy, you can borrow up to the cash surrender value.

Life Insurance Resources in North Dakota

North Dakota Life & Health Insurance Guaranty Association: Licensed North Dakota insurance companies are required to join this organization under the North Dakota Guaranty Association Act. It's designed to fulfill claims if your company is liquidated.

North Dakota Insurance Department: This department is available to answer questions about life insurance; reach out by phone or email. If you're a first-time buyer, the department's educational guide tells you what to look for.

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