North Dakota Empowers Insurance Commissioner with Restitution and Fine Authority

North Dakota has enacted a new law, HB1088, empowering the state insurance commissioner to mandate insurance companies to provide restitution to affected policyholders and impose fines up to $10,000 per violation. This legislation aims to strengthen regulatory enforcement mechanisms to ensure financial remedies for insurance consumers. The bill, supported by a strong legislative majority, addresses challenges the insurance department faced when seeking monetary penalties and restitution through negotiation, and aligns with broader industry compliance objectives.

A comparable measure in Washington, SB5331, did not pass, highlighting differing regulatory approaches across states. Washington's bill proposed similar restitution authority and a fine cap of $100,000 for the Office of Insurance Commissioner, but consumer advocates noted amendments reducing punitive measures affected legislative support. These developments reflect ongoing state-level efforts to enhance consumer protection within the insurance regulatory framework.