NDIRF to Continue to Administer North Dakota State Fire and Tornado Fund

Bismarck, N.D. – The North Dakota Insurance Reserve Fund (NDIRF) is proud to announce its contract to administer the North Dakota State Fire and Tornado Fund (NDFT) has been extended. The contract extension agreement with the North Dakota Insurance Department (NDID) was reached June 30, 2023, and the extension period is from July 1, 2023, to July 1, 2025. The NDIRF was first awarded the contract to administer the NDFT on June 28, 2019.

“The Fire and Tornado Fund protects the investments made across the state and the role it plays in our state cannot be underestimated,” said Insurance Commissioner Jon Godfread. “The consumers of this fund rely on the protections that are offered. Ensuring its stability and availability for consumers is our priority.”

The NDFT provides property coverage to North Dakota state agencies and political subdivisions, including coverage for their buildings, contents, and outdoor property.

“We are grateful for the opportunity to continue to serve North Dakota local governments and state agencies through our administration of the NDFT,” NDIRF CEO Brennan Quintus said. “We value our partnership with the Insurance Department and their faith in our experienced and knowledgeable staff to ensure that the NDFT continues to be a strong, stable source of the important property coverage it provides.”

The NDIRF is a not-for-profit self-insurance pool that was created in 1986 by North Dakota local governments. The self-insurance pooling model was a rising solution for many government entities in the late 1980s due to rapid increases in local government coverage costs and an overall decline in coverage availability.

“The NDIRF was created in response to an insurance crisis for local governments, and our members [North Dakota political subdivisions] did what North Dakotans do. They turned to each other and created their own solution,” Quintus shared. “For 37 years, their solution, the NDIRF, has been a strong and stable source of risk services, providing liability, automobile, and equipment coverages, claims handling, and risk management training and resources specific to the needs of North Dakota local governments.”

After assuming administration in 2019 of the NDFT, the NDIRF established a three-year plan to enhance NDFT operations and coverages. The NDIRF’s most notable achievements are introducing four additional coverage options, allowing the NDFT’s members to further customize their coverage, and increasing the NDFT’s Total Insured Value (TIV) by over $5 billion.

Additional Coverage Options
The additional coverage options include wind/hail per building deductible removal, increase sewer backup limit to $25,000, additional per building debris removal limits, and blanket limit of coverage. Refer to corresponding coverage form for further information, including coverage terms and conditions.

Total Insured Value (TIV)
In the past three years, the NDIRF has been busy collecting updated property valuations for property (building, personal, outdoor, trailer, etc.) covered under the NDFT. The result has led to a $5 billion increase in the NDFT’s TIV.

The increase in TIV required significant time investments from the NDFT’s members, local agents, and NDIRF employees. The increase helps to strengthen the NDFT’s position within the reinsurance market.

Due to catastrophic weather events that have occurred nationwide over the past couple of years, reinsurance, which is insurance for insurance, has exponentially risen in price. One of the ways the NDIRF has helped the NDFT acquire adequate reinsurance coverage at an affordable price per current market conditions is by demonstrating responsible fund management, for which increased TIV is a strong indicator.