Prohibited practices
N.D. Cent. Code § 26.1-33.4-12
in effect26.1-33.4-12. Prohibited practices
1. It is unlawful for any person to:
a. Enter a life settlement contract if such person knows or reasonably should have
known that the life insurance policy was obtained by means of a false, deceptive,
or misleading application for such policy;
b. Engage in any transaction, practice, or course of business if such person knows
or reasonably should have known that the intent was to avoid the notice
requirements of this chapter;
c. Engage in any fraudulent act or practice in connection with any transaction
relating to any settlement involving an owner who is a resident of this state;
d. Issue, solicit, market, or otherwise promote the purchase of an insurance policy
for the purpose of or with an emphasis on settling the policy;
e. Enter a premium finance agreement with any person or agency, or any person
affiliated with such person or agency, pursuant to which such person shall receive
any proceeds, fees, or other consideration, directly or indirectly, from the policy or
owner of the policy or any other person with respect to the premium finance
agreement or any settlement contract or other transaction related to such policy
that are in addition to the amounts required to pay the principal, interest, and
service charges related to policy premiums pursuant to the premium finance
agreement or subsequent sale of such agreement; provided, further, that any
payments, charges, fees, or other amounts in addition to the amounts required to
pay the principal, interest, and service charges related to policy premiums paid
under the premium finance agreement must be remitted to the original owner of
the policy or to the original owner's estate if the original owner is not living at the
time of the determination of the overpayment;
f. With respect to any settlement contract or insurance policy and a broker,
knowingly solicit an offer from, effectuate a life settlement contract with, or make
a sale to any provider, financing entity, or related provider trust that is controlling,
controlled by, or under common control with such broker;
g. With respect to any life settlement contract or insurance policy and a provider,
knowingly enter into a life settlement contract with an owner, if, in connection with
such life settlement contract, anything of value will be paid to a broker that is
controlling, controlled by, or under common control with such provider or the
financing entity or related provider trust that is involved in such settlement
contract;
h. With respect to a provider, enter into a life settlement contract unless the life
settlement promotional, advertising, and marketing materials, as may be
prescribed by regulation, have been filed with the commissioner. In no event may
any marketing materials expressly reference that the insurance is "free" for any
period of time. The inclusion of any reference in the marketing materials that
would cause an owner to reasonably believe that the insurance is free for any
period of time must be considered a violation of this chapter; or
i. With respect to any life insurance producer, insurance company, broker, or
provider, make any statement or representation to the applicant or policyholder in
connection with the sale or financing of a life insurance policy to the effect that
the insurance is free or without cost to the policyholder for any period of time
unless provided in the policy.
2. A violation of this section is deemed a fraudulent life settlement act.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t26-1c33-4.pdf#nameddest=26p1-33p4-12Fetched: 10/16/2026