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Generative AI Liability Insurance in North Dakota

North Dakota HB 1351, signed in 2025, amended the state’s sexually expressive-image laws to include computer-generated and altered depictions. Section 12.1-27.1-03.3 criminalizes specified surreptitious creation or possession and intentional distribution or publication where the depicted person had a reasonable expectation of privacy; the act also provides a civil action for covered images of minors under specified harmful or commercial purposes. 1,2,3

What Is Generative AI Liability?

Generative AI liability can help pay covered defense costs and losses when someone claims your AI use caused harm, including infringement or data disclosure. If you use or sell AI outputs, check how the policy fits your role and existing liability coverage. Read the national Generative AI liability guide.

What to Watch for in North Dakota

  • North Dakota’s image definition now includes generated depictions

    HB 1351 amended the definition of sexually expressive image to include a computer-generated photograph or visual representation and an image modified or altered to include a real individual. The change means a person need not have posed for the final image for the definition to matter. For a model or editing service, preserve source provenance, identity cues, and how the rendered content was modified. 1,2

  • Distribution liability depends on privacy and notice facts

    Section 12.1-27.1-03.3 reaches distribution or publication with intent to cause emotional harm or humiliation when the depicted person had a reasonable expectation of privacy, and also addresses distribution after notice that the person or guardian does not consent. The statute also covers certain knowing acquisition and distribution of an image created without the subject’s consent. A product’s upload, generation, and re-sharing steps can create different evidence about knowledge and notice. 1

  • The new civil action is scoped to specified minor-image conduct

    HB 1351 adds a civil action for an identifiable minor who suffers harm when a person produces, possesses, distributes, promotes, advertises, sells, exhibits, broadcasts, or transmits the sexually expressive deepfake for sexual arousal, gratification, humiliation, degradation, or monetary or commercial gain. Do not generalize this cause of action to every adult likeness dispute; ask whether the conduct and purpose match the enacted text. 2

  • North Dakota also regulates deceptive product advertising

    N.D.C.C. § 51-15-02 prohibits deceptive acts, fraud, false promises, or misrepresentations in a sale or advertisement of merchandise when made with intent that others rely on them. Review public claims about a generative product’s safeguards, provenance, and performance against evidence; this consumer statute is separate from the sexually expressive-image offenses. 3

Who Regulates Insurance in North Dakota

North Dakota Insurance Department

The North Dakota Insurance Department regulates insurers and producers, provides licensing and company searches, and investigates insurance complaints to assess compliance with state law and policy terms. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 1.75% of gross premium, assessments and policy fees, less return premium, when North Dakota is home state When North Dakota is the insured’s home state, the 1.75% tax applies to the entire gross premium, assessments, membership and subscriber fees, and policy or service fees on multistate policies, less return premium. North Dakota permits independent procurement only under separate statutory conditions; the policyholder should confirm whether a licensed broker placement or independent procurement applies. Nonadmitted insurers generally do not participate in state guaranty funds. 7,8,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in North Dakota

  1. Can users create or distribute computer-generated sexually expressive depictions of real people, including minors, and how are identity and age risks handled?
  2. What moderation evidence shows the service received or acted on a depicted person’s notice of nonconsent?
  3. Does the quote address North Dakota criminal allegations and the statute’s separate civil action involving minors and specified purposes?

Generative AI Liability in North Dakota: FAQ

Does North Dakota’s 2025 civil action cover every deepfake claim? 2

No. The enacted provision describes an identifiable minor who suffers harm from specified conduct involving a sexually expressive deepfake for one of the listed purposes. 2

Can a computer-generated image count under North Dakota’s sexually expressive-image law? 1,2

Yes. HB 1351 expanded the statutory definition to include a computer-generated or altered visual representation, subject to the statute’s other requirements. 1,2

Generative AI Liability in Other States

Other Coverage in North Dakota

Sources

  1. North Dakota Century Code, Chapter 12.1-27.1: Obscenity Control. North Dakota Legislative Council; § 12.1-27.1-01(13) and § 12.1-27.1-03.3: sexually expressive image definition, offense, exceptions, and civil action. Accessed 2026-09-29.
  2. North Dakota HB 1351, 69th Legislative Assembly. North Dakota Legislative Assembly; Enrolled text amending §§ 12.1-27.1-01 and 12.1-27.1-03.3; signed April 23, 2025 and filed April 22, 2025. Accessed 2026-09-29.
  3. North Dakota Century Code ch. 51-15: Unlawful Sales or Advertising Practices. North Dakota Legislative Council; § 51-15-02: deceptive acts, false promises, or misrepresentations in the sale or advertisement of merchandise. Accessed 2026-09-29.
  4. North Dakota Insurance Department. North Dakota Insurance Department; Official department homepage; identifies regulation of insurance and consumer/business assistance. Accessed 2026-09-28.
  5. Print License / Search for an Agent. North Dakota Insurance Department; Official licensing page directs the public to current SBS public lookup for agent status, license number, lines and appointments; linked public lookup is up to date. Accessed 2026-09-28.
  6. Complaints. North Dakota Insurance Department; Official complaint process; Department reviews compliance with insurance laws and policy coverage; directs online filings to state-specific SBS complaint form. Accessed 2026-09-28.
  7. Surplus Lines. North Dakota Insurance Department; Current official page: ND home-state rate 1.75% on total premium including assessments and policy fees for multistate coverage; explains home-state allocation and nonadmitted insurer guaranty status. Accessed 2026-09-28.
  8. N.D.C.C. Chapter 26.1-44, Surplus Lines Insurance. North Dakota Legislative Branch; §26.1-44-03.1 sets 1.75% tax base, home-state rule, fee inclusion, return premiums; §§26.1-44-08 and related provisions cover placements. Accessed 2026-09-28.
  9. Surplus Lines. North Dakota Insurance Department; Official page states nonadmitted insurers generally do not participate in state-created insurance guaranty funds. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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