Last reviewed: 9 October 2026
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United StatesNorth Dakota exempts a property service contract from its insurance title
North Dakota's Century Code treats a contract to repair, replace or maintain property — a home's systems and appliances, or a motor vehicle — as a "property service contract" that is not subject to the insurance title. A separate section of the insurance title, aimed at automobile warranties and service contracts, sets an insurance-policy requirement. This page sets out both sections and what each says.
In short
- The exemption: "The marketing, selling, offering for sale, issuing, making, providing, or proposing to make and the administering of a property service contract ... is not subject to the provisions of title 26.1" (N.D.C.C. § 9-01-21(1)). Title 26.1 is the insurance title.1
- What it covers: a contract for separately stated consideration, for a specific duration, to repair, replace or maintain property, or to indemnify for that, where an operational or structural failure is due to a defect in materials, manufacturing, or normal wear and tear. The property may include motor vehicles, residential appliances, and residential systems such as plumbing, electrical, heating, cooling and ventilation (§ 9-01-21(2)).1
- A separate vehicle provision: under § 26.1-40-18, a person who issues a written automobile warranty contract, automobile mechanical breakdown contract, or automobile service contract "shall maintain a policy of insurance which provides coverage for the person's contractual obligation," from an insurer with stated financial strength. A violation is a class A misdemeanor (§ 26.1-40-22).2
- What this page does not say: how § 9-01-21(1) and § 26.1-40-18 apply together to a particular vehicle contract, or what other North Dakota law may apply.
Section 9-01-21: property service contracts
The exemption sits in Title 9 (Contracts), not in the insurance title. Subsection 1 provides that the marketing, selling, offering for sale, issuing, making, providing, proposing to make and administering of a property service contract, or of a vehicle theft protection product warranty, is not subject to the provisions of title 26.1. Subsection 2 defines the term and lists the coverages a contract may provide.1
| Item | What the statute says |
|---|---|
| Property covered | New or used property, which may include motor vehicles; residential appliances; residential systems (plumbing, electrical, heating, cooling and ventilation); and other residential property1 |
| Trigger | An operational or structural failure due to a defect in materials, manufacturing, or normal wear and tear1 |
| Power surges and handling | Damage to property resulting from power surges; accidental damage to property resulting from handling1 |
| Incidental damages | Payment of indemnity for incidental damages, such as food spoilage, towing, and rental and emergency road service1 |
| Vehicle add-ons | Tire and wheel road-hazard repair or replacement; paintless dent removal; small windshield chip or crack repair; replacement of a lost, stolen or inoperable key or key fob1 |
| Leased vehicles | In conjunction with a leased motor vehicle, coverage for excess wear and use or damage that results in a lease-end charge, provided the payment does not exceed the purchase price of the vehicle1 |
Section 26.1-40-18: the automobile insurance-policy provision
Chapter 26.1-40 is titled "Automobile Insurance and Warranties." Section 26.1-40-18 requires a person who issues a written automobile warranty contract, automobile mechanical breakdown contract or automobile service contract to maintain a policy of insurance providing coverage for the person's contractual obligation. The policy must be issued by an insurer licensed, registered or otherwise authorized to do business in the state. From the time the policy is filed with the commissioner, the insurer must either maintain surplus as to policyholders and paid-in capital of at least $15 million, or maintain between $10 million and $15 million with a ratio of net written premiums to surplus of not more than three to one, and in either case file annual financial statements and actuarial certifications. The section does not apply to an original equipment manufacturer. Section 26.1-40-22 makes a violation of § 26.1-40-18 a class A misdemeanor.2
How the two sections sit together
Section 9-01-21 says that a property service contract, which by definition may include a motor vehicle, is not subject to title 26.1. Section 26.1-40-18 is in title 26.1 and speaks to automobile warranty, mechanical breakdown and service contracts. This page does not state how the two are to be read together for a particular vehicle contract; a reader with a specific question should check the current text of both sections and, where it matters, ask the North Dakota Insurance Department.
What this means for a North Dakota buyer
For a home warranty, the sections this page covers identify no North Dakota licensing or registration track for the provider, so the practical check is the contract itself: what it covers, what it excludes, who is obligated on it, and what backs that obligation. Our guide to confirming funded claims backing walks through that check, and our contract-reading checklist covers the terms. For a vehicle contract, ask whether an insurance policy of the kind § 26.1-40-18 describes stands behind it. Other North Dakota law, including general consumer law, may also apply; this page does not describe it. For complaint routes, see where to file a warranty complaint.
Last reviewed: 9 October 2026. Statute text as published on the North Dakota Legislative Assembly's Century Code pages. General information, not legal advice.