A proposed bill to increase fees charged by North Dakota's insurance commissioner is generating significant discussion among state legislators. During a recent Senate Industry and Business meeting, Deputy Insurance Commissioner John Arnold presented House Bill 1123, which aims to raise various fees to align with those of other states and address a growing budget deficit.

Arnold highlighted that North Dakota's renewal and annual fees have remained largely unchanged for 30 to 40 years, resulting in a substantial gap compared to neighboring states. The proposed changes include raising the renewal fee from $100 to $150, the annual statement fee from $25 to $100, and the abstract fee from $30 to $50. These adjustments are expected to generate approximately $1.4 million in additional revenue for the state’s special fund, which ultimately supports the general fund.

The bill also proposes an increase in appointment fees for insurance producers, from $10 to $25, which is projected to bring in an estimated $1.3 million per biennium. Additionally, fees for life settlement brokers and providers will see increases, with the renewal fee rising from $12 to $25 and the annual statement fee from $25 to $100.

Arnold explained that the need for these increases stems from the financial strain on the department, particularly after the state took over the fire marshal's office, which has led to a situation of "overdraft spending." He emphasized that the proposed fee hikes are necessary to stabilize the department's finances and ensure it can continue to operate effectively.

While some legislators expressed concerns about the timing of the fee increases amid a challenging market, Arnold noted that there has been no significant opposition from the industry regarding the proposed changes. He reassured committee members that North Dakota's fees would still remain competitive compared to those in other states.

The committee is expected to continue discussions on the bill, with some members suggesting the need for a more systematic approach to fee adjustments in the future to avoid long gaps between increases. Arnold acknowledged this suggestion and indicated a willingness to explore a more regular review process for fees moving forward.