North Dakota Code 65-06.2-07 – State reimbursement for liability in excess of collected premiums
Whenever total costs and expenses charged to the classification of the modified workers’ compensation program established under this chapter exceeds the amount of premiums paid into the fund and any payments from the risk management workers’ compensation fund under the workforce safety and insurance state entities account under section 65-04-03.1, those excess costs and expenses are a general obligation of the state and the state shall reimburse the organization for credit to the workforce safety and insurance fund through legislative appropriation to the extent not covered by any program of excess coverage or reinsurance. This modified workers’ compensation coverage may not be effective unless the organization has, in its sole discretion, purchased excess coverage or reinsurance that does not exclude claims under this section.
Terms Used In North Dakota Code 65-06.2-07
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49