Not legal advice. This page summarizes chapters of the North Dakota Century Code as published by the Legislative Assembly and one North Dakota Supreme Court decision. It leaves out administrative rules and most case law.
What stands out in North Dakota
- Suicide: a defense for only the first policy year (26.1-33-37), and the policy-terms statute limits suicide restrictions to that year (26.1-33-05(12)).
- Interest: from the date of death, tied to filing proof within 180 days (26.1-33-05(9)).
- Premium refund: unearned premium beyond the month of death is refunded within 30 days of notice, for many policy types (26.1-33-05(13)).
- Suit clauses: no shorter than five years (26.1-33-06(2)).
Settlement and interest
Under 26.1-33-05(9), every individual life policy must say that a death claim is settled on receipt of due proof of death, or not later than two months after that receipt, and that the settlement must include reasonable interest accrued from the date of death, so long as proof of death is filed within 180 days of the death. Group policies must carry the same promise (26.1-33-11(13)).
The statute says “reasonable” interest without naming a rate. If the company’s figure looks low, ask how it was calculated.
Beneficiaries should file proof within 180 days, since the interest promise is conditioned on it.
Refund of premium paid past the month of death
Section 26.1-33-05(13) requires a provision that the insurer will refund, within thirty days after notice of death, any premium or other sum paid for the period beyond the month of death. It does not apply to term life, flexible-premium life, or a policy the insurer has a valid defense to.
Suicide: one year, and sanity does not matter
North Dakota addresses suicide twice.
- Policy-terms statute. A policy must state any restrictions for travel, occupation, change of residence or suicide. Except for armed forces or wartime military service, a suicide restriction can be effective only during the first year after issue; others last up to two years (26.1-33-05(12)).
- Suicide statute. In a suit on a life policy or certificate, it is no defense after the policy has been in force one year that the insured died by suicide, and contrary policy terms are void. Whether the insured was sane or insane is not a factor in deciding whether the death was suicide (26.1-33-37).
Contestability and application statements
- Two-year contest period. The policy becomes incontestable after being in force during the insured’s lifetime for two years from its date. The exceptions are nonpayment, violations of policy terms on naval or military service in wartime, and, at the company’s option, total-and-permanent-disability and accidental-death provisions (26.1-33-05(3)).
- Representations. Absent fraud, the insured’s statements are representations, not warranties. None of them avoids the policy unless it appears in a written application that was endorsed on or attached to the policy when issued (26.1-33-05(4)).
- Age. If age was understated, the benefit is what the premium would have bought at the correct age (26.1-33-05(5)).
- Grace. Thirty-one days for each premium after the first, with coverage continuing; an overdue premium may be deducted if death occurs during grace (26.1-33-05(2)).
Claim practices regulated by the Insurance Department
N.D.C.C. 26.1-04-03(9) prohibits listed acts when done without just cause and with a frequency indicating a general business practice. Relevant ones for life claims:
- not acknowledging pertinent claim communications with reasonable promptness (b);
- lacking reasonable standards for prompt investigation (c);
- no good-faith attempt at prompt, fair settlement once liability is reasonably clear (d);
- lowball offers that force suit, where the amount claimed was reasonably similar to the eventual recovery (e);
- requiring a preliminary claim report and then a duplicative formal proof of loss (i);
- not affirming or denying coverage within a reasonable time after proof of loss is completed (j).
The “without just cause” qualifier is written into the statute’s opening words.
Corwin: the duty of good faith (1979)
An auto dealer’s employee embezzled cash, and the dealer’s fidelity insurer paid only part of the loss. In Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Insurance Co., 279 N.W.2d 638 (N.D. 1979), the North Dakota Supreme Court:
- held that an insurer “is obligated to act in good faith in its relationship with its policyholders,” and that a breach may make it liable for damages proximately caused;
- treated whether an insurer acted in bad faith as a question for the trier of fact, and upheld the finding where the company kept denying after its own accountant clarified the loss;
- explained that an insurer relying in good faith from the outset on an arguable legal defense is a different case; and
- affirmed the denial of exemplary damages, because bad faith alone is not enough without oppression, fraud or malice.
Corwin involved a commercial fidelity policy and the policyholder itself. A beneficiary’s standing to assert the duty is a question for a North Dakota lawyer.
Group life
Group policies issued in North Dakota must include:
- Conversion on leaving. If coverage ends because employment or eligibility ends, the insured can get an individual policy without evidence of insurability. The application and first premium are due within 31 days, and the group policy may exclude term from the choices (26.1-33-11(9)). The privilege extends to surviving dependents whose coverage ends at the employee’s death.
- Plan termination. People insured for at least five years may convert. The group policy may cap the amount at the lesser of the lost coverage (minus new group coverage) or $10,000 (26.1-33-11(10)).
- Death in the window. If the person dies during the conversion period, the amount that could have been converted is payable as a group claim, whether or not an application was made (26.1-33-11(11)).
- Late notice. If the person is not told of the right at least 15 days before the period ends, an additional period runs until 15 days after notice is given (26.1-33-12). Notice in the certificate or attached to it counts. The section, as reviewed, states no outer cap on the extension.
For employer plans governed by federal law, see employer group life.
Time limits
N.D.C.C. 28-01-16(1) sets six years for an action on a contract, obligation or liability. Separately, a life policy may not require suit within less than five years after the claim accrues (26.1-33-06(2)). Read the policy’s suit clause and count from the earliest plausible accrual date.
Homicide: 30.1-10-03
North Dakota’s version of the homicide rule revokes revocable beneficiary designations in favor of an individual who intentionally and feloniously kills the decedent. Points particular to the North Dakota text:
- Conviction or civil finding. A conviction is conclusive only after all rights to appeal are exhausted. Otherwise, the court decides on an interested person’s petition under the preponderance-of-evidence standard (subsection 7).
- Insurers and suspicion. A payer has no duty to determine whether the death was a felonious killing or to look for evidence, even when circumstances are suspicious. It is liable only for actions taken two or more business days after it actually receives written notice.
- Notice requirements. The notice must name the decedent and the person asserting an interest, describe the payment, and state that a forfeiture or revocation is claimed under the section. It must be sent by registered mail to the main office or home, or served like a summons. Notice to a sales representative does not count.
- Deposit. After notice, the payer may deposit the money with the probate court.
Families who suspect a beneficiary should send a compliant notice promptly.
Ex-spouse beneficiaries: 30.1-10-04
North Dakota’s 30.1-10-04 revokes, on divorce or annulment, any revocable disposition to the former spouse or the former spouse’s relatives in a document executed while the marriage still existed, unless the instrument’s express terms, a court order or a marital property contract provides otherwise. A decree of separation that leaves the marriage intact is not enough.
The payer-protection rules are specific. An insurer need not investigate whether the marriage continued, and it is liable only for what it does two or more business days after it actually receives written notice naming the decedent and the claimant, describing the benefit, and stating that the divorce, annulment or remarriage occurred. The notice goes to the main office or home by registered mail or is served like a summons, and other forms of service do not make the payer liable. ERISA can override the statute for employer coverage (Egelhoff).
Example
A Fargo insured dies by suicide fourteen months after the policy was issued. The insurer cites the policy’s two-year suicide exclusion. Under 26.1-33-37 the defense is unavailable after one year in force, and the contrary clause is void. The family files proof within 180 days so that settlement carries interest from the date of death.
Complaints
The North Dakota Insurance Department takes consumer complaints: Complaints (North Dakota Insurance Department). A complaint does not stop the limitation period.
Sources
- North Dakota Century Code, Legislative Assembly: ndlegis.gov/cencode.
- North Dakota Insurance Department: insurance.nd.gov.
- Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Insurance Co., 279 N.W.2d 638 (N.D. 1979) (full opinion, CourtListener): courtlistener.com. Read November 3, 2026.
- North Dakota Century Code 30.1-10-04 (official PDF, North Dakota Legislative Branch): ndlegis.gov.
Not legal advice. This page summarizes general rules and the specific statutes cited. Your policy's wording, the state whose law applies, and whether the coverage came through an employer can all change the result. See the disclaimer and editorial policy.