BISMARCK, N.D. (KXNET)– Consumers in our state are celebrating now that a district judge has ruled against a case raising insurance rates for North Dakota policy holders.

On behalf of North Dakota, our state’s Insurance commissioner Jon Godfread filed a lawsuit in federal court last year against Pennsylvania insurance commissioner Jessica Altman, who has now since been replaced.

In 2020, Altman seized operations and finances of a defunct long-term care insurance company– Senior Health Insurance Company of Pennsylvania (or SHIP) — which has nearly 400 policy holders in North Dakota. Pennsylvania officials then hiked rates and reduced benefits for policy holders across the country without approval. This violates North Dakota insurance and consumer protection laws, which prompted Godfread to file the lawsuit.

Now, the court has denied a motion to dismiss the complaint and has granted a preliminary injunction that halts the implementation of unapproved rates for North Dakota consumers.

Cases have also been filed against the Pennsylvania Insurance Commissioner in Iowa, Louisiana and South Carolina.