26.1-41 Auto Accident Reparations - North Dakota Statutes

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CHAPTER 26.1-41AUTO ACCIDENT REPARATIONS26.1-41-01. Definitions. As used in this chapter:1."Accidental bodily injury" means bodily injury, sickness, or disease, including death
resulting therefrom, arising out of the operation of a motor vehicle, and excluding
injury as the result of an individual entering or alighting from a stopped motor vehicle
if the injury is not caused by another motor vehicle, and which is accidental as to the
person claiming basic or optional excess no-fault benefits.2."Basic no-fault benefits" means benefits for economic loss resulting from accidental
bodily injury.The maximum amount of basic no-fault benefits payable for alleconomic loss incurred and resulting from accidental bodily injury to any one person
as the result of any one accident may not exceed thirty thousand dollars, regardless
of the number of persons entitled to the benefits or the number of basic no-fault
insurers obligated to pay the benefits.Basic no-fault benefits payable may notexceed one hundred fifty dollars per week per person prorated for any lesser period
for work loss or survivors' income loss, or three thousand five hundred dollars for
funeral, cremation, and burial expenses.3."Basic no-fault insurer" means an insurer or a qualified self-insurer.4."Bus" means:a.Any motor vehicle owned by a public or governmental agency and operated for
the transportation of children to or from school or privately owned and operated
for compensation for the transportation of children to or from school.b.Any motorvehicle owned by a charitable, religious, educational, orgovernmental corporation or organization designed for carrying more than ten
passengers and used for the transportation of persons not for compensation.c.Any motor vehicle owned by a political subdivision and operated as part of a
public transit system in which all or a portion of the costs of operation are
subsidized by the political subdivision or the federal government.5."Dependent survivors" means the surviving spouse of a deceased injured person if
residing in the deceased's household at the time of the deceased's death, and other
persons receiving support from the deceased injured person at the time of the
deceased's death which would qualify them as dependents of the deceased for
federal income tax purposes under the federal Internal Revenue Code.Thedependency of a surviving spouse terminates upon remarriage.6."Disability" means the inability to engage in substantially all of the injured person's
usual and customary daily activities.7."Economic loss" means medical expenses, rehabilitation expenses, work loss,
replacement services loss, survivors' income loss, survivors' replacement services
loss, and funeral, cremation, and burial expenses.8."Injured person" means an individual who sustains accidental bodily injury.9."Medical expenses" means usual and customary charges incurred for reasonable
and necessary medical, surgical, diagnostic, x-ray, dental, prosthetic, ambulance,
hospital, or professional nursing services or services for remedial treatment and
care. Usual and customary charges do not include:Page No. 1a.The portion of the charge for a room in any hospital, clinic, convalescent or
nursing home, extended care facility, or any similar facility in excess of the
reasonable and customary charge for semiprivate accommodations unless
intensive care is medically needed.b.Charges for drugs sold without a prescription.c.Charges for experimental treatments.d.Charges for medically unproven treatments.10."Motor vehicle" means a vehicle having more than three load-bearing wheels, of a
kind required to be registered under the laws of this state relating to motor vehicles,
designed primarily for operation upon the public streets, roads, and highways, and
driven by power other than muscular power, and includes a trailer drawn by or
attached to such a vehicle.11."Noneconomic loss" means pain, suffering, inconvenience, and other nonpecuniary
damage recoverable under the tort law of this state.12."Occupying" means to be in or upon a motor vehicle.13."Operation of a motor vehicle" means operation, maintenance, or use of a motor
vehicle as a vehicle. Operation of a motor vehicle does not include conduct within
the course of a business of repairing, servicing, or otherwise maintaining a motor
vehicle unless the injury occurs off the business premises, or conduct in the course
of loading and unloading the vehicle unless the injury occurs while occupying the
motor vehicle.14."Owner" means the person in whose name the motor vehicle has been registered. If
ownership has been transferred, but the registration record has not been changed,
"owner" means the person, other than a lienholder, to whom ownership has been
transferred. If no registration is in effect at the time of an accident involving the
motor vehicle, "owner" means the person, other than a lienholder, who holds the
legal title to the motor vehicle.If the motor vehicle is the subject of a securityagreement with the debtor having the right to possession, a lease with an option to
purchase with the lessee having the right to possession, or a lease with a term of six
months or more with the lessee having the right to possession, "owner" means the
debtor or lessee.15."Pedestrian" means any individual not occupying any vehicle designed to be driven
or drawn by power other than muscular power.16."Rehabilitation expense" means the cost of a procedure or treatment for
rehabilitation or a course of rehabilitative occupational training if the procedure,
treatment, or training is reasonable and appropriate for the particular case, its cost is
reasonable in relation to its probable rehabilitative effects, and it is likely to contribute
substantially to medical or occupational rehabilitation.17."Relative" means any of the following residing in the same household as the owner:
an individual related to the owner by blood, marriage, or adoption, or a foster child.
An individual resides in the same household if that individual usually makes a home
in the same family unit, even though temporarily living elsewhere.18."Replacement services loss" means expenses not exceeding fifteen dollars per day
in obtaining ordinary and necessary services from others not members of the injured
person's household in lieu of those that the injured person would have performed
had the injured person not been injured, not for income but for the benefit of thePage No. 2injured person or the injured person's household. Replacement services loss does
not include any loss after the death of an injured person.19."Secured motor vehicle" means a motor vehicle with respect to which the security
required by this chapter was in effect at the time of its involvement in the accident
resulting in accidental bodily injury.20."Secured person" means the owner, operator, or occupant of a secured motor
vehicle, and any other person legally responsible for the acts or omissions of the
owner, operator, or occupant.21."Serious injury" means an accidental bodily injury which results in death,
dismemberment, serious and permanent disfigurement or disability beyond sixty
days, or medical expenses in excess of two thousand five hundred dollars.Aninjured person who is furnished the services in subsection 9 without charge or at less
than the usual and customary charge for the service in this state is deemed to have
sustained a serious injury if a court determines that the usual and customary value
of the services exceeds two thousand five hundred dollars.22."Survivors' income loss" means loss sustained after an injured person's death by
dependent survivors during their dependency and consisting of the loss of the
contributions they would have received for their support from the decedent out of
income from work the decedent would normally have performed had the decedent
not died.23."Survivors' replacement services loss" means expenses, not to exceed fifteen
dollars per day after the injured person's death, by dependent survivors in obtaining
ordinary and necessary services from others not members of the decedent's
household in lieu of the services the decedent would have performed not for income
but for the benefit of the decedent's household.24."Work loss" means eighty-five percent of loss of income from work an injured person
who would normally be employed in gainful activity during the period of disability
would have performed had the person not been injured, reduced by any income
from substitute work actually performed by the injured person or by income the
injured person would have earned in available appropriate substitute work that the
injured person was capable of performing but unreasonably failed to undertake.
Work loss does not include any loss after death of an injured person.26.1-41-02.Security requirements - Authority of director of the department oftransportation.1.The owner of a motor vehicle required to be registered in this state, or the owner of a
motor vehicle operated in this state by the owner or with the owner's permission,
shall continuously provide with respect to the motor vehicle during the period in
which operation is contemplated in this state security for payment of basic no-fault
benefits and the liabilities covered under the motor vehicle liability insurance.2.The security may be provided by an insurance policy complying with this chapter
issued by an insurer authorized to transact business in this state, or, by
self-insurance as approved by the commissioner.3.If the motor vehicle is registered in another state, the security may be provided by an
insurance policy issued by an insurer authorized to transact business in either this
state or the state in which the motor vehicle is registered, or, by self-insurance as
approved by the insurance department of the state in which the motor vehicle is
registered.Page No. 34.The owner of any motor vehicle who operates it or permits it to be operated in this
state when the owner knows or should know that the owner has failed to comply with
the requirement that the owner provide security under this chapter shall have the
motor vehicle registration revoked or suspended in accordance with procedures
established by the director of the department of transportation under the motor
vehicle law of this state until the owner provides the security required by this chapter.5.An owner of a motor vehicle with respect to which security is required who fails to
have the security in effect at the time of an accident is absolutely liable at law for
payment of basic no-fault benefits and has all the rights and obligations of a basic
no-fault insurer under this chapter. This remedy is in addition to any other remedy
that an injured person may have against the owner.6.An insurance policy which purports to provide coverage for basic no-fault benefits or
is sold with the representation that it fulfills the requirements of security as required
by this chapter is deemed to include all coverage required by this chapter.7.The director of the department of transportation may supervise the enforcement of
the compulsory security requirements of this chapter and may adopt the rules
necessary in respect to the maintenance of the requirements.26.1-41-03.Suspension of coverage - Request by owner.Upon notice from theowner of a secured motor vehicle stating that the secured motor vehicle will not be operated on
public roads or highways during a period of not less than thirty consecutive days, the basic
no-fault insurer of the vehicle shall suspend on a pro rata basis or shall offer a similar credit, to
the extent requested by the owner, insurance coverage afforded under the policy providing the
security for payment of basic no-fault benefits and the liabilities covered under the motor vehicle
liability insurance for the secured motor vehicle until notified by the owner that the coverage
should be reinstated. The owner may not be required to surrender the number plates during the
policy suspension period. During the period of suspension, subsections 1, 2, 4, 5, 6, and 7 of
section 26.1-41-02 do not apply with respect to the secured motor vehicle, but if the secured
motor vehicle is operated by or with the permission of the owner during the period of suspension,
subsections 1, 2, 4, 5, and 7 of section 26.1-41-02 become applicable. This section does not
apply to an owner of a secured motor vehicle for which proof of financial responsibility is required
under the financial responsibility laws of this state.26.1-41-04.Optional excess no-fault benefits.Each basic no-fault insurer of theowner of a secured motor vehicle shall also make available optional excess no-fault benefits for
excess economic loss commencing upon the exhaustion of basic no-fault benefits, up to a total of
eighty thousand dollars in no-fault benefits for accidental bodily injury to any one person in any
one accident, including an accident when the person who purchased the optional excess no-fault
benefits or that person's relative is injured in a motor vehicle not owned by the insured or as a
pedestrian. A basic no-fault insurer may also offer benefits and limits other than those prescribed
in this section, and a basic no-fault insurer may incorporate in optional excess no-fault coverage
the terms, conditions, and exclusions as may be consistent with the premiums charged. The
amounts payable under optional excess no-fault benefits may be duplicative of benefits received
from any collateral sources or may be written in excess of such collateral source benefits, or may
provide for reasonable waiting period, deductibles, or coinsurance provisions.The optionalexcess no-fault benefits of a basic no-fault insurer may provide for subrogation to the injured
person's right of recovery against any responsible third party.26.1-41-05. Self-insurance - Liability policies - Authority of commissioner.1.Self-insurance used as security required by this chapter may be provided by filing in
satisfactory form all of the following:a.A continuing undertaking by the owner or other appropriate person to pay basic
no-fault benefits and the liabilities covered by motor vehicle liability insurance
and to perform all other obligations imposed by this chapter.Page No. 4b.Evidence that appropriate provision exists for the prompt and efficient
administration of all claims, benefits, and obligations provided by this chapter.c.Evidence that reliable financial arrangements, deposits, or commitments exist
providing assurance for payment of basic no-fault benefits and the liabilities
covered by motor vehicle liability insurance and all other obligations imposed by
this chapter substantially equivalent to those afforded by an insurance policy
that would comply with this chapter.2.Every insurer authorized to transact the business of motor vehicle liability insurance
in this state shall file with the commissioner as a condition of its continued
transaction of business in this state a form declaring that its motor vehicle liability
policies wherever issued are deemed to provide the security required by this chapter
when the motor vehicle is operated in this state. Any nonadmitted insurer may file
this form.3.The commissioner may adopt necessary rules not inconsistent with this chapter.
The commissioner may provide schedules of reasonable maximum benefits
payments for specified medical services and rehabilitation expenses which basic
no-fault insurers may incorporate into their policies of basic or optional excess
coverages afforded pursuant to this chapter.26.1-41-06. Persons entitled to basic no-fault benefits. Each basic no-fault insurer ofa secured motor vehicle shall pay basic no-fault benefits without regard to fault for economic loss
resulting from:1.Accidental bodily injury sustained in the United States or its possessions or in
Canada by the owner of the motor vehicle or any relative of the owner:a.While occupying any motor vehicle; orb.While a pedestrian as the result of being struck by a motor vehicle or
motorcycle.2.Accidental bodily injury sustained by any other person while occupying the secured
motor vehicle if the accident occurs in the United States or its possessions or in
Canada.3.Accidental bodily injury sustained by any pedestrian in this state as a result of being
struck by the secured motor vehicle.26.1-41-07. Persons not entitled to benefits. Basic or optional excess no-fault benefitsare not payable to or on behalf of any person who is injured while:1.Occupying any motor vehicle without the expressed or implied consent of the owner
or while not in lawful possession of the motor vehicle.2.Occupying a motor vehicle owned by such person which is not insured for the
benefits required by this chapter unless uninsured solely because the insurance
company of the owner has not filed a form pursuant to subsection 2 of section
26.1-41-05 to provide the basic no-fault benefits required by this chapter.3.During a racing or speed contest, or in practicing or preparing for a racing or speed
contest.4.Intentionally causing or attempting to cause injury to oneself or another person.26.1-41-08. Secured person exemption.Page No. 51.In any action against a secured person to recover damages because of accidental
bodily injury arising out of the ownership or operation of a secured motor vehicle in
this state, the secured person is exempt from liability to pay damages for:a.Noneconomic loss unless the injury is a serious injury.b.Economic loss to the extent of all basic no-fault benefits paid or to become
payable for such injury under this chapter after subtracting the same elements
of loss recoverable under any workforce safety and insurance law.2.The exemption under subsection 1 does not apply unless the person who has
sustained accidental bodily injury is a person who may qualify for basic no-fault
benefits pursuant to section 26.1-41-06 and who is not excluded under section
26.1-41-07.26.1-41-09. Payment of basic and optional excess no-fault benefits.1.Basic and optional excess no-fault benefits are payable monthly for economic loss
sustained by an injured person or dependent survivors or incurred on the injured
person's behalf by the injured person's spouse, relatives, or guardian.A basicno-fault insurer may pay basic or optional excess no-fault benefits when due to the
above persons who it believes have sustained or incurred the economic loss or at its
option to the person rendering, for a charge, the services for which the benefits are
payable. If the injured person dies, a basic no-fault insurer may pay the benefits due
directly to those entitled to the benefits without the appointment of a personal
representative and unless a court directs otherwise, may pay all benefits for
survivors' income loss or replacement services loss to the surviving spouse for the
use and benefit of all dependent survivors.A basic no-fault insurer's paymentsmade in good faith in accordance with this chapter discharges its liability to the
extent of the payments unless the basic no-fault insurer has been notified in writing
of the claim of some other person prior to the making of any of the payments.2.Basic and optional excess no-fault benefits are overdue if not paid within thirty days
after the basic no-fault insurer receives reasonable proof of the fact and the amount
of loss sustained, except that the basic no-fault insurer may accumulate claims for
periods not exceeding one month, and the benefits are not overdue if paid within
twenty days after the period of accumulation. If reasonable proof is not supplied as
to the entire claim, the amount supported by reasonable proof is overdue if not paid
within thirty days after the proof is received by the basic no-fault insurer. Any part or
all of the remainder of the claim that is later supported by reasonable proof is
overdue if not paid within thirty days after proof is received by the basic no-fault
insurer. Payment is deemed made on the date of mailing. All overdue payments
must bear interest at the judgment rate allowed in section 28-20-34.3.Neither the injured person nor a basic no-fault insurer is required to pay for services
billed more than one hundred eighty days after the date of treatment.26.1-41-10.Assignment of nonmedical benefits unenforceable - Exemption ofbenefits from process.An agreement for assignment of any right to nonmedical benefitspayable in the future is unenforceable. Basic no-fault benefits are exempt from garnishment,
attachment, execution, and any other process or claim to the extent that wages or earnings are
exempt under any applicable law exempting wages or earnings from process or claims.26.1-41-11. Mental and physical examinations.1.Whenever the mental or physical condition of an individual is material to any claim
that has been or may be made for past or future basic or optional excess no-fault
benefits, the individual shall submit to mental or physical examination by a physician
designated by the basic no-fault insurer at a reasonably convenient location. BasicPage No. 6no-fault insurers are authorized to include reasonable provisions of this nature in
policies providing basic or excess no-fault benefits.2.If an individual refuses to submit to a mental or physical examination, a court at the
request of the insurer may enter an order requiring the individual to submit to the
examination. If the court finds that the individual failed to appear for the examination
without good cause, the court shall order the insured to reimburse the insurer for any
reasonably demonstrable cancellation charges for the examination.26.1-41-12. Discovery of facts about an injured person.1.Every employer or claimant, if a written request is made by a basic no-fault insurer
against whom a claim has been made, shall furnish forthwith, in a form approved by
the insurance commissioner, a sworn statement of the earnings, since the time of
the accidental bodily injury and for a twelve-month period before the injury, of the
individual upon whose injury the claim is based.2.Every physician, coroner or medical officer, hospital, clinic, or other medical
institution providing, before or after an accidental bodily injury upon which a claim for
basic or optional excess no-fault benefits is based, any products, services, or
accommodations in relation to the injury, or in relation to a condition claimed to be
connected with the injury, if requested in writing to do so by the basic no-fault insurer
against whom the claim has been made, shall:a.Promptly furnish a written report of the history, condition, treatment, and dates
and costs of treatment.b.Permit the inspection and copying of its records regarding the history, condition,
treatment, and dates and costs of treatment.c.Promptly furnish autopsy reports.3.In the event of any dispute regarding a basic no-fault insurer's right to discovery of
facts about an injured person's earnings or about history, condition, treatment, and
dates and costs of such treatment, a court of record may enter an order for such
discovery as justice requires.4.A person may not charge more than twenty dollars for the first twenty-five pages and
seventy-five cents per page for every page beyond twenty-five pages for providing a
copy of medical records provided to a basic no-fault insurer pursuant to this chapter.
This charge includes any administrative fee, retrieval fee, and postage expense.26.1-41-13. Priority of applicable security - Coordination of benefits.1.A basic no-fault insurer has the primary obligation to make payment for economic
loss because of accidental bodily injury arising out of the operation of a motor
vehicle; provided, that the amount of all benefits a claimant recovered or is entitled
to recover for the same elements of loss under any workforce safety and insurance
law must be subtracted from the basic no-fault benefits otherwise payable for the
injury.2.As between applicable security basic no-fault benefits are payable as follows:a.As to any person injured while occupying a secured motor vehicle, or injured as
a pedestrian by a secured motor vehicle, the basic no-fault insurer of the
secured motor vehicle shall pay the benefits.b.As to any person who is injured while occupying an unsecured motor vehicle, or
while being struck as a pedestrian by an unsecured motor vehicle, the basicPage No. 7no-fault insurer affording the benefits to the injured person shall pay the
benefits.c.As to any person injured while occupying a bus that is a secured motor vehicle,
the basic no-fault insurer affording benefits to the injured person as the owner
of a secured motor vehicle or as a relative of the owner of a secured motor
vehicle shall pay the benefits; and, if there is no basic no-fault insurer affording
benefits to the injured person, then the basic no-fault insurer of the bus shall
pay the benefits.d.As to any person injured while occupying a secured motor vehicle that is
transporting persons under a ridesharing arrangement, as defined in section
8-02-07, the basic no-fault insurer affording benefits to the injured person as the
owner of a secured motor vehicle or as a relative of the owner of a secured
motor vehicle shall pay the benefits; and, if there is no basic no-fault insurer
affording benefits to the injured person, then the basic no-fault insurer of the
secured motor vehicle shall pay the benefits.3.An insurer, health maintenance organization, or nonprofit health service corporation,
other than a basic no-fault insurer, authorized to do business in this state may
coordinate any benefits it is obligated to pay for economic loss incurred as a result of
accidental bodily injury, with the first ten thousand dollars of basic no-fault benefits.
A basic no-fault insurer authorized to do business in this state may coordinate any
benefits it is obligated to pay for medical expenses incurred as a result of accidental
bodily injury in excess of ten thousand dollars.An insurer, health maintenanceorganization, or nonprofit health service corporation, other than a basic no-fault
insurer, may not coordinate benefits unless it provides those persons who purchase
benefits from it with an equitable reduction or savings in the direct or indirect cost of
purchased benefits. The commissioner shall approve any coordination of benefits
plan.26.1-41-14. Stacking of basic no-fault benefits prohibited. When an injured person isprovided basic no-fault benefits by an insurance policy issued in compliance with this chapter, the
injured person is covered only to the extent of the basic no-fault benefits provided on the secured
motor vehicle involved in the accident and the optional excess no-fault benefits purchased by the
injured person, or a relative of the injured person, on a secured motor vehicle, if any, in excess of
the basic no-fault benefits provided on the secured motor vehicle involved in the accident. If any
person is injured while occupying an unsecured motor vehicle, basic no-fault benefits are only
available to the extent of the applicable basic no-fault benefits provided to the injured person as
the owner of a secured motor vehicle or as a relative of the owner of a secured motor vehicle. In
either instance, basic no-fault benefits on any secured motor vehicle may not be added or
stacked upon basic no-fault benefits available from any other source.26.1-41-15. Motor vehicle liability insurance - Extraterritorial provision.1.Motor vehicle liability insurance applies to the amounts which the owner is legally
obligated to pay as damages because of accidental bodily injury and accidental
property damage arising out of the ownership or operation of a motor vehicle, if the
accident occurs in the United States or its possessions or in Canada. Motor vehicle
liability insurance must afford limits of liability not less than those required under the
financial responsibility laws of this state. Customary terms and conditions applicable
to motor vehicle liability insurance apply.2.If the accident occurs outside this state but in the United States or its possessions or
in Canada:a.If the limits of liability of the financial responsibility or compulsory insurance
laws of the applicable jurisdiction exceed the limits of liability of the financial
responsibility laws of North Dakota, the motor vehicle liability insurance isPage No. 8deemed to comply with the limits of liability of the laws of the applicable
jurisdiction.b.If the limits of no-fault benefits of the applicable jurisdiction exceed the limits
provided under this chapter for no-fault benefits, the no-fault benefits are
deemed to comply with the limits of the benefits of the laws of the applicable
jurisdiction.26.1-41-16. Insurer's right of subrogation. A basic no-fault insurer which has paid ormay become obligated to pay basic no-fault benefits under this chapter is subrogated to the
extent of its obligations to all of the rights of the injured person against any person other than a
secured person. The subrogee has a lien to the extent of its obligations, and no release of rights
is effective against the rights without the subrogee's consent.26.1-41-17. Equitable allocation of losses among insurers. Repealed by S.L. 2005,ch. 274,