The North Dakota insurance commissioner can now require insurance companies to pay restitution following the passage of a law recently signed by the governor. 

HB1088 also gives the commissioner the ability to fine insurance companies up to $10,000 for each violation. 

“Historically, the department has been successful in negotiating restitution in lieu of all, or a portion of, administrative fines; however, the time has come for us to request formal authority to help make these victims financially whole,” said John Arnold, deputy commissioner for the North Dakota Insurance Department, during testimony to the Senate Industry and Business Committee in February. 

The bill was signed into law April 10 by Gov. Kelly Armstrong. It passed the House 76-13 and the Senate 45-1. 

Arnold also told the committee that the department has historically charted up to $10,000 per violation but the action has been, at times, challenged in court. 

A similar Washington bill, SB5331, died in committee earlier this month. The bill also would have given the state’s Insurance Commission authority to order restitution from insurance companies. 

It also asked for the authority to fine home and auto insurance companies up to $10,000 per violation. 

A committee-approved substitute bill would have created a cap on total fines for the OIC at $100,000. 

“The Senate passed a strong consumer protection bill,” said Commissioner Patty Kuderer, in a press release. “Unfortunately, an anti-consumer amendment to cap total fines caused members who would have otherwise supported the bill to vote against it.”

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