26.1-22 State Fire and Tornado Fund - North Dakota Statutes

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CHAPTER 26.1-22STATE FIRE AND TORNADO FUND26.1-22-01. Definitions. In this chapter, unless the context otherwise requires:1."Fund" means the state fire and tornado fund.2."Indirect loss" means a loss in income or the additional expenses incurred because
of a property loss.3."International peace garden" means an entity located upon the international
boundary line between the United States and Canada used and maintained as a
memorial to commemorate the long-existing relationship of peace and good will
between the people and the governments of the United States and Canada and to
further international peace among the nations of the world.4."Permanent contents" refers only to such public property, either owned or leased,
usually kept or used in or about public buildings insured in the fund, and to all public
personal property usually kept or used in or about all buildings used for public
purposes, or within one hundred feet [30.48 meters] of all such buildings, or while on
sidewalks, streets, alleys, yards, detached platforms, and in or on railway cars. The
term includes similar property owned by an international peace garden or a winter
show. The term does not include automobiles, trucks, tractors, road machinery, or
similar property used principally outside such buildings.5."Political subdivision" means all counties, townships, park districts, school districts,
cities, and any other units of local government which are created either by statute or
by the Constitution of North Dakota for local government or other public purposes.6."Replacement cost" is the cost to replace a building or its permanent contents with a
similar structure of like materials or a similar product at current prices.7."Winter show" means an agricultural exhibition sponsored each year in March by a
nonprofit corporation.26.1-22-02.State fire and tornado fund under management of commissioner -Purpose of fund. The commissioner shall manage the fund. The fund must be maintained as a
fund to insure the various state industries, the various political subdivisions, any international
peace garden, and any winter show against loss to the public buildings, or buildings owned by an
international peace garden or a winter show, and fixtures and permanent contents therein, and
against indirect loss, through fire, lightning, inherent explosion, windstorm, cyclone, tornado and
hail, explosion, riot attending a strike, aircraft, smoke, and vehicles. At the option of the insured,
the fund may insure against other risks of direct physical loss and indirect loss from those risks.
All moneys collected under this chapter must be paid into the fund for use only for the purposes
provided for in this chapter.26.1-22-02.1.Insurance against indirect losses.The commissioner shall provide,upon request of an entity insured with the fund, coverage by the fund for an indirect loss incurred
because of a loss arising out of a peril insured against by the fund.26.1-22-03. Employment of assistants - Expenditures from fund. To carry out thischapter, the commissioner may utilize any information on file in the state fire marshal's
department and any of the employees of the commissioner and the commissioner may employ
necessary assistants and incur necessary expenses. All expenditures made for these purposes
must remain within the limits of legislative appropriations and must be paid out of the fund upon
warrants prepared by the office of management and budget drawn upon the state treasurer after
the approval of vouchers by the office of the budget.Page No. 126.1-22-04. Investment of fund. Investment of the fund is under the supervision of thestate investment board in accordance with chapter 21-10.26.1-22-05.Public, international peace garden, and winter show buildingsinsurable in fund. The public buildings and fixtures and permanent contents therein belonging
to the state, the various state industries except the state mill and elevator association if the
association exercises the option provided in section 26.1-22-10, and the political subdivisions
must, and the buildings and fixtures and the permanent contents therein belonging to an
international peace garden or a winter show may, be insured under this chapter. No officer or
agent of the state or of any political subdivision, and no person having charge of any public
buildings belonging to the state, any state industry, or any political subdivision, may pay out any
public moneys or funds on account of any insurance against loss by fire, lightning, inherent
explosion, windstorm, cyclone, tornado and hail, explosion, riot attending a strike, aircraft, smoke,
vehicles, or any other risks of direct physical loss, or contract in any manner for, or incur any
indebtedness against, the state or any political subdivision on account of any such insurance
upon any of the buildings or fixtures and permanent contents therein belonging to the state or
any political subdivision, except in the manner provided in this chapter.26.1-22-06.Commissioner to adopt guidelines on insurable values.Thecommissioner shall adopt guidelines to be used by state agencies, departments, offices, officers,
boards, commissions, international peace gardens, and winter shows for the purpose of
determining insurable values of state-owned property and property belonging to an international
peace garden or a winter show for insurance coverage as authorized by law. The commissioner
shall adopt guidelines in determining insurable values to assist state agencies and institutions
andpoliticalsubdivisionsindeterminingwhethertoselectindirectlosscoverage.Notwithstanding any other provision of this chapter, the expenses for necessary loss prevention
inspections and rating inspections for the purpose of determining the proper premium rate to be
applied to the property insured by the fund must be paid out of the fund.26.1-22-06.1. Replacement cost appraisal required on state-owned property. Onceevery six years each state agency and institution shall obtain from the fund a replacement cost
appraisal on all buildings and fixtures and permanent contents under its control. The fund shall
determine the manner of conducting the appraisal. Annually, except for any year an appraisal is
conducted, the agency or institution shall adjust the appraisal amount in the manner authorized
by the fund.26.1-22-07.Certain property of state and of Bank of North Dakota excepted.Repealed by S.L. 1989, ch. 357,