Date of enactment: November 11, 2015
2015 Senate Bill 287   Date of publication*: November 12, 2015
* Section 991.11, Wisconsin Statutes: Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication."
2015 WISCONSIN ACT 90
An Act to repeal 601.422, 601.425, 601.428, 612.14 (1) to (12), 612.31 (5), 612.31 (6), 612.32 (4), 612.53 (1) (title), 612.53 (2), 612.71, 623.06 (1c), 628.81, 635.13 (title), 635.13 (2) and 646.51 (3) (am) 1.; to renumber 612.53 (1) and 635.13 (1); to renumber and amend 612.14 (intro.), 620.04 (1), 623.06 (1f), 623.06 (8) and 632.43 (6m) (a) 3.; to consolidate, renumber and amend 646.51 (3) (am) (intro.) and 2.; to amend 600.01 (1) (b) 10. b., 605.21 (2), 611.07 (4), 611.56 (5), 611.63 (4), 612.02 (2) (a), 612.13 (3), 612.13 (4), 612.31 (4) (m), 612.32 (1), 612.32 (2) (a), 612.33 (1), 612.33 (2) (b), 623.06 (2) (intro.), 628.07, 628.10 (2) (a), 628.10 (2) (am), 628.347 (1) (a), 628.347 (4) (c), 628.347 (4m) (b) 3. c., 631.95 (3) (a), 632.43 (6m) (e) 3. f., 632.43 (6m) (e) 3. g., 632.62 (2), 632.62 (3), 632.62 (4) (a), 632.62 (4) (b), 632.89 (3c) (b), 646.51 (3) (b), 646.51 (4) (a), 646.51 (9) (a), 646.51 (9) (b), 655.27 (3) (b) 1., 655.27 (3) (b) 2., 655.27 (3) (b) 2m., 655.27 (3) (bg) 1., 655.27 (3) (bg) 2., 655.27 (3) (br) (intro.), 655.27 (3) (d), 655.27 (3) (e) and 655.61 (1); to repeal and recreate 623.06 (1) (f); and to create 227.01 (13) (pm), 601.465 (1m) (c) 8., 601.465 (1m) (c) 9., 601.465 (3) (d), 620.04 (1) (b), 623.06 (1), 623.06 (1f) (b), 623.06 (1m) (intro.), 623.06 (1r), 623.06 (8m), 623.06 (9), 623.06 (10), 623.06 (11), 623.06 (12), 623.06 (13) (b), 632.43 (6m) (a) 3. b., 632.43 (6m) (a) 4m., 645.675, 646.51 (3) (ar), 646.51 (10), 655.27 (3) (bt) and 655.61 (3) of the statutes; relating to: various miscellaneous changes to the insurance statutes and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
90,1 Section 1. 227.01 (13) (pm) of the statutes is created to read:
227.01 (13) (pm) Relates to setting fees under s. 655.27 (3) for the injured patients and families compensation fund or setting fees under s. 655.61 for the mediation fund.
90,2 Section 2. 600.01 (1) (b) 10. b. of the statutes is amended to read:
600.01 (1) (b) 10. b. The exemption under subd. 10. a. does not apply if the services offered by the care management organization include hospital, physician or other acute health care services other than mental health and alcohol and other drug abuse treatment services.
90,3 Section 3. 601.422 of the statutes is repealed.
90,4 Section 4. 601.425 of the statutes is repealed.
90,5 Section 5. 601.428 of the statutes is repealed.
90,6 Section 6. 601.465 (1m) (c) 8. of the statutes is created to read:
601.465 (1m) (c) 8. The International Association of Insurance Supervisors.
90,7 Section 7. 601.465 (1m) (c) 9. of the statutes is created to read:
601.465 (1m) (c) 9. An agent or employee of the International Association of Insurance Supervisors.
90,8 Section 8. 601.465 (3) (d) of the statutes is created to read:
601.465 (3) (d) Any information defined as confidential information under s. 623.06 (12) (am), which is subject only to the confidentiality provisions in s. 623.06 (12).
90,9 Section 9. 605.21 (2) of the statutes is amended to read:
605.21 (2) Premium payment. Upon receipt of certification of premium due, the premium shall be paid into the state treasury for the benefit of the property fund, within 60 30 days after the date of certification or the effective date of the policy, whichever is the later. Premiums for property insured effective at a later date shall be paid within 60 30 days after the effective date of each addition. The amount of a premium in default shall be a special charge against the local governing unit, and be included in the next certification of state taxes and charged and collected as other special charges are collected, with interest from the due date at a rate set by the commissioner by rule or, in the absence of a rule, at twice the most common prime rate charged by major banks in this state.
90,10 Section 10. 611.07 (4) of the statutes is amended to read:
611.07 (4) Waiver of notice and informal action by shareholders, policyholders or directors. Sections 180.0704, 180.0706, 180.0821, and 180.0823 apply to stock corporations and ss. 181.0704, 181.0706, 181.0821, and 181.0823 apply to mutuals. Section 180.0821 also applies to a committee of the board of a stock corporation and s. 181.0821 also applies to a committee of the board of a mutual, except that, in both cases, references to "board" shall be read as "committee" and "directors" shall mean members of the board appointed to serve on the committee.
90,11 Section 11. 611.56 (5) of the statutes is amended to read:
611.56 (5) Quorum Meetings, quorum, and voting. Section Sections 180.0820, 180.0821, and 180.0824 applies apply to a committee of the board of a stock corporation, except that references in s. 180.0824 to a committee "created under s. 180.0825" shall be read as a committee "created under this section". Sections 181.0820, 181.0821, and 181.0824 apply to a committee of the board of a mutual, except that references to "board" shall be read as "committee", "majority" in s. 181.0824 (1) shall mean a majority of the members of the board appointed to serve on the committee, and "majority" in s. 181.0824 (2) shall mean a majority of the members of the board appointed to serve on the committee who are present at the meeting.
90,11m Section 11m. 611.63 (4) of the statutes is amended to read:
611.63 (4) Annual report to commissioner. The amount of all direct and indirect remuneration for services, including retirement and other deferred compensation benefits and stock options, paid or accrued each year for the benefit of each director and each officer and employee member of executive management, as defined by the commissioner, whose remuneration exceeds an amount established by the commissioner, and for all directors and officers as a group shall be included in the annual report made to the commissioner.
90,12 Section 12. 612.02 (2) (a) of the statutes is amended to read:
612.02 (2) (a) The name of the corporation which shall contain the words "Town Mutual";
90,13 Section 13. 612.13 (3) of the statutes is amended to read:
612.13 (3) Duties. The board shall manage direct the business and affairs of the corporation and shall not delegate its power or responsibility to any person except as specifically provided otherwise in this chapter.
90,14 Section 14. 612.13 (4) of the statutes is amended to read:
612.13 (4) Adjustment committee. The directors shall may annually appoint from their own number an adjustment committee of at least 3 persons, to adjust or supervise the adjustment of losses under s. 612.53. If no adjustment committee is appointed, the entire board shall act as the adjustment committee to adjust or supervise the adjustment of losses under s. 612.53.
90,15 Section 15. 612.14 (intro.) of the statutes is renumbered 612.14 and amended to read:
612.14 Reports. The secretary and the treasurer An officer or person designated by an officer of the company shall present to the annual meeting written reports showing the condition of the town mutual on the previous December 31 and its activity during the preceding calendar year, including: any information required to be presented by the articles or bylaws or by the commissioner. The officer or person designated by an officer shall include in the reports a sufficient level of information to reasonably inform members about the financial condition of the town mutual.
90,16 Section 16. 612.14 (1) to (12) of the statutes are repealed.
90,17 Section 17. 612.31 (4) (m) of the statutes is amended to read:
612.31 (4) (m) Assuming reinsurance, except under sub. (6); or
90,18 Section 18. 612.31 (5) of the statutes is repealed.
90,19 Section 19. 612.31 (6) of the statutes is repealed.
90,20 Section 20. 612.32 (1) of the statutes is amended to read:
612.32 (1) Real property outside territory. Town mutuals may insure real property and contents in villages and cities partially located in the specified territory, real property and contents in an immediately adjoining county owned by a member immediately adjoining and contiguous to land owned by the same member which is who has real property and contents insured by the town mutual within the specified territory, and real property and contents used exclusively by the member and his or her family for recreational purposes.
90,21 Section 21. 612.32 (2) (a) of the statutes is amended to read:
612.32 (2) (a) Farm property. A town mutual may provide coverage for livestock, while temporarily located outside the town mutual's territory, for farm products, while temporarily located for a period not exceeding 2 years outside the town mutual's territory, and for farm machinery and farm vehicles while temporarily located, for a period not exceeding 6 months, one year outside its territory, subject to limitations in the policy or in the articles or bylaws with respect to the distance from the territory to which the property may be removed without suspension of the coverage.
90,22 Section 22. 612.32 (4) of the statutes is repealed.
90,23 Section 23. 612.33 (1) of the statutes is amended to read:
612.33 (1) Permitted and prohibited reinsurance. A town mutual may cede reinsurance only under s. 612.31 (6), or to an insurer authorized to do business in this state under s. 612.71 or ch. 611 or 618, or under arrangements which are approved in advance by the commissioner and which are subject to the controls the commissioner prescribes.
90,24 Section 24. 612.33 (2) (b) of the statutes is amended to read:
612.33 (2) (b) Nonproperty insurance. To the extent that a town mutual provides insurance under s. 612.31 (3), it shall obtain reinsurance of at least a 90% proportional share of each risk or it shall obtain excess of loss reinsurance with a retention in a similar dollar amount with an insurer authorized to do such business in this state, in either instance not to exceed $25,000 on each risk. The commissioner may permit a town mutual to retain a larger percentage or have a greater excess of loss retention level if he or she finds that the interests of the members will not be endangered thereby, or may require it to reinsure a larger percentage or obtain a lesser excess of loss retention level if he or she finds that the interests of the members make it advisable. The commissioner may by rule require other reinsurance.
90,25 Section 25. 612.53 (1) (title) of the statutes is repealed.
90,26 Section 26. 612.53 (1) of the statutes is renumbered 612.53.
90,27 Section 27. 612.53 (2) of the statutes is repealed.
90,28 Section 28. 612.71 of the statutes is repealed.
90,29 Section 29. 620.04 (1) of the statutes is renumbered 620.04 (1) (intro.) and amended to read:
620.04 (1) Additional restrictions. (intro.) If the commissioner finds that by reason of investment conditions generally or of the financial condition or current investment practice of an individual insurer, the interests of insureds, creditors, or the public are or may be endangered, the commissioner may do any of the following:
(a) For insurers that are not restricted under s. 620.03, impose reasonable and temporary restrictions upon the investments of an individual insurer, including prohibition or divestment of a particular investment.
90,30 Section 30. 620.04 (1) (b) of the statutes is created to read:
620.04 (1) (b) For insurers that are subject to s. 620.03, impose reasonable restrictions upon the investments of an individual insurer, including prohibition or divestment of a particular investment.
90,31 Section 31. 623.06 (1) of the statutes is created to read:
623.06 (1) In this section:
(a) "Accident and health insurance contract" means a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual.
(b) "Appointed actuary" means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required in sub. (1r).
(c) "Deposit-type contract" means a contract that does not incorporate mortality or morbidity risks and as may be specified in the valuation manual.
(d) "Law enforcement agency," "National Association of Insurance Commissioners," or "regulatory agency" includes the employees, agents, consultants, and contractors of each such entity.
(e) "Life insurance," "life insurance contract," "life insurance policy," or "plan of life insurance" means a contract that incorporates mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.
(f) "Operative date of the valuation manual" means the date determined under sub. (9) (b).
(g) "Principle-based valuation" means a reserve valuation that uses one or more methods, or one or more assumptions, determined by the insurer and that is required to comply with sub. (10) as specified in the valuation manual.
(h) "Qualified actuary" means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American academy of actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the valuation manual, if the valuation manual is in effect, and any other requirements that the commissioner may by rule specify.
(i) "Tail risk" means a risk that occurs either when the frequency of low probability events is higher than expected under a normal probability distribution or when there are observed events of very significant size or magnitude.
(j) "Valuation manual" means the manual of valuation instructions as adopted by the National Association of Insurance Commissioners under sub. (9) or as subsequently amended.
90,32 Section 32. 623.06 (1) (f) of the statutes, as created by 2015 Wisconsin Act .... (this act), is repealed and recreated to read:
623.06 (1) (f) "Operative date of the valuation manual" means the effective date of this paragraph .... [LRB inserts date], as determined under sub. (9) (b).
90,33 Section 33. 623.06 (1c) of the statutes is repealed.
90,34 Section 34. 623.06 (1f) of the statutes is renumbered 623.06 (1f) (a) and amended to read:
623.06 (1f) (a) The For policies and contracts issued before the operative date of the valuation manual, the commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state, except that in the case of an alien company, such valuation shall be limited to its United States business, and may certify the amount of any such reserves, specifying the mortality table or tables, rate or rates of interest and methods (net level premium method or other) used in the calculation of such reserves. In calculating such reserves, the commissioner may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required of any foreign or alien company, the commissioner may accept any valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when if such valuation complies with the minimum standard herein provided and if the official of such state or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the commissioner when such certificate states the valuation to have been made in a specified manner according to which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by the law of that state or jurisdiction. Subsections (2) to (7) apply to all policies and contracts issued before the operative date of the valuation manual.
90,35 Section 35. 623.06 (1f) (b) of the statutes is created to read:
623.06 (1f) (b) For policies and contracts issued on or after the operative date of the valuation manual, the commissioner shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health insurance contracts, and deposit-type contracts of every insurer doing business in this state. In lieu of the valuation of the reserves required of a foreign or alien company, the commissioner may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction if the valuation complies with the minimum standard provided in this section. Subsections (9) and (10) apply to all policies and contracts issued on or after the operative date of the valuation manual.
90,36 Section 36. 623.06 (1m) (intro.) of the statutes is created to read:
623.06 (1m) (intro.) Before the operative date of the valuation manual, all of the following apply:
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