North Dakota Code § 26.1-21-10

Automatic insurance of state and political subdivisions
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1. Each state agency and political subdivision shall apply to be bonded in the fund at 
least once per biennium or when a change in coverage is requested, whichever occurs 
first. Unless an application is denied within sixty days from the date it is received by 
the office, the application will be approved and bond coverage in force. If a bond is in 
the discretion of the state agency or political subdivision and a bond is not requested, 
the state agency or political subdivision is exempt from this section.
2. The application must include:
a. The requested amount of bond coverage based on the amount of money and 
property handled , the opportunity for defalcation , and any other condition 
imposed by law;
b. An amount equal to twenty -five percent of the money in control of the public 
officials or employees for which the bond is requested for the preceding year 
based on the total monthly balances; and
c. Any other information requested by the office to determine the amount of money 
and property handled and the opportunity for defalcation, including the procedure 
used to determine the amount of bond requested, revenues for the last budget 
period by type, expenditures for the last budget period by type, the number of 
people that handle money, any portion of the last audit, and any financial 
procedures.
3. A blanket bond automatically includes coverage for new employees and new public 
officials.

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