North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-03 - Regulation of Insurance Companies
Chapter 45-03-22 - Mutual Insurance Holding Company Act Rules
Section 45-03-22-07 - Prohibited practices

1. Borrowing funds by the mutual insurance holding company or its subsidiaries or affiliates from the mutual insurance holding company's subsidiary or affiliates to finance the purchase of a stock offering by the reorganized insurer.

2. Payment of a commission, special fee, or any other special payment or extraordinary compensation to an officer, director, interested person, or affiliate for arranging, promoting, aiding, or assisting in the reorganization of the mutual insurance holding company or for arranging, promoting, aiding, assisting, or participating in the structuring or placement of an offering of securities except as permitted by the commissioner.

3. Avoiding this chapter by entering into an understanding or agreement transferring a legal or beneficial ownership of voting securities to another person.

4. The publication of a prospectus, information, sales material, or sales presentation by the applicant, or by any representative, agent, or affiliate of the applicant, may not contain a representation that the commissioner's approval of an offering constitutes an endorsement of the price, price range, fairness, suitability, or any other information or matter relating to the offered securities or arising from the offering. The front of the prospectus must contain in boldface type a statement that the commissioner's approval of an offering does not constitute an endorsement of the price, price range, fairness, suitability, or any other information or matter.