At a glance
Legal framework
Tort, with a statute you cannot use. The common-law duty of good faith and fair dealing comes from Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Ins. Co., 279 N.W.2d 638 (N.D. 1979), which described it as a duty not to withhold unreasonably payments due under a policy. N.D.C.C. § 26.1-04-03(9) lists thirteen unfair claim settlement practices, but the Insurance & Securities Department enforces them, not you.
Can you sue directly?
Yes — the Corwin tort, brought by the insured against the insurer. The test is simply whether the insurer acted unreasonably in handling the claim (Fetch v. Quam, 2001 ND 48; Hartman v. American Family Mut. Ins. Co., 2003 ND 45), and the standard defence is that the claim was fairly debatable. The statute is a dead end. Under § 26.1-04-03(9) the listed practices only count if done with a frequency indicating a general business practice, and on exactly that ground the Supreme Court threw out the statutory claim in Dvorak v. American Family Mut. Ins. Co., 508 N.W.2d 329 (N.D. 1993) — a single bad denial is not enough — without ever deciding whether a private action exists at all.
Deadline
6 years, both ways: § 28-01-16(1) to sue on the policy, and § 28-01-16(5) for the bad-faith tort as an injury to the person or rights of another not arising upon contract. Better still, § 9-08-05 voids any contract term that limits the time in which a party may enforce its rights, except where a statute specifically permits it, and § 26.1-39-06(10) forbids a fire policy from setting a suit limit of less than three years. The exception that catches people is auto no-fault: § 26.1-41-19(1) allows two years from when you knew the loss came from the accident, or four years from the accident, whichever is earlier.
Before you file
None required. No notice letter, no waiting period, no certificate of merit — you can file the day the denial letter arrives. The hurdle in North Dakota is not before the suit but inside it: the complaint you file cannot ask for punitive damages, and you have to win a separate motion later to add them.
What you can recover

Damages available in North Dakota

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Insurance dispute attorneys — North Dakota

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How to find one yourself, free

Telephone only, 9am—12pm and 1pm—4pm on weekdays. It matches you with full-price lawyers, not discounted ones, and the staff cannot give legal advice. If you cannot pay, the same page points to Legal Services of North Dakota on 800-634-5263. North Dakota certifies no legal specialists in any field. Rule 7.4 of the state Rules of Professional Conduct lets a lawyer advertise a certification granted by the ABA or another state’s bar, but there is no North Dakota board that approves one — so judge a firm on its reported bad-faith results, not on a badge.

Before you sue

How often does your insurer actually pay?

Worth checking before you spend money on a lawyer. Two different measures exist, and they are not interchangeable — one is a real payment record, the other is a complaint count.

Health cover — real denial rates

Published, per insurer

Health insurers selling on the federal marketplace must report how many claims they received and how many they refused. The figures are public and free to inspect.

20%
Average denied, 2023
1%–54%
Range across 175 insurers

The spread is the point. Two insurers selling comparable cover in the same state can refuse wildly different shares of what they are billed for. Look your own up before you assume your refusal was routine.

Source: CMS Transparency in Coverage public use files, plan year 2023 experience. Self-reported by insurers and not audited. Covers federal-marketplace plans only — not employer cover, and not state-run marketplaces. Post-service claims only.

Home, auto & property

No payout rate is published

There is no free public figure showing what share of home or auto claims any named insurer pays. Insurers do report it to regulators, but in most states that filing is confidential. Any table you see online quoting payout percentages for property insurers is either a paid commercial product or an estimate.

What is public is the complaint index — how many confirmed complaints a company generates against its share of the market. 1.00 is average. 3.00 means three times the complaints its size would predict.

Complaint indexes are published by state insurance departments and compiled by the NAIC. Figures move with both the company’s complaints and the wider market’s.

These two numbers are not the same thing. A denial rate is the share of claims an insurer refused. A complaint index is how often customers complained relative to the company’s size. A low complaint index does not mean an insurer pays well, and a high one does not prove it refuses claims — it can reflect the kind of cover it sells or the customers it attracts. Neither figure says anything about whether your claim should have been paid.
The clock

What the insurer is required to do, and by when

Thinner than in most states. North Dakota never adopted the NAIC claim-handling regulation, so Title 45 of the Administrative Code sets no fixed day-counts for acknowledging, investigating or deciding an ordinary claim. All § 26.1-04-03(9) demands is reasonable promptness on communications, prompt investigation, and a decision within a reasonable time after proof of loss has been completed. Two hard numbers do exist. Auto no-fault benefits are overdue if unpaid 30 days after the insurer receives reasonable proof of the loss, and overdue payments then carry interest at the judgment rate (§ 26.1-41-09(2), § 28-20-34). And on a signed, notarised written request the insurer must send you your own loss and claim information within 20 days (N.D. Admin. Code § 45-05-04-01) — at up to 50 cents a page, but it is your file.

The thing most people miss

You are not allowed to ask for punitive damages in your complaint. § 32-03.2-11(1) states flatly that upon commencement of the action, the complaint may not seek exemplary damages. You sue for the money first. Then, once discovery has produced something, you file a motion to amend the pleadings, backed by affidavits or deposition testimony, and the judge grants permission only if the evidence would support a finding of oppression, fraud or malice. It means the insurer sees the punitive claim coming a long way off, and you must earn it in discovery before a jury ever hears the word.

Unsettled: Two soft spots. The North Dakota Supreme Court has never squarely fixed the limitation period for a bad-faith claim — six years under § 28-01-16 is the accepted working answer rather than a holding, and an insurer will argue for something shorter, so treat the earliest plausible date as your deadline. And Dvorak deliberately left open whether § 26.1-04-03 can ever be sued on privately once the general-business-practice threshold is met; the federal court in North Dakota has held it cannot (Farmers Union Central Exchange v. Reliance Ins. Co., 675 F. Supp. 1534 (D.N.D. 1987)), but the state Supreme Court has still not said so. Separately, the regulator was renamed in July 2025 when the Securities Department was merged into it — older letters and forms still say North Dakota Insurance Department.
Free first step

Complain to the regulator before you spend anything

A complaint to the North Dakota Insurance & Securities Department costs nothing, creates a written record, and sometimes moves a stalled claim on its own. It is not a substitute for legal advice and it does not pause any deadline — but there is rarely a reason not to do it first.

Where this comes from

Sources

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