AB992, s. 5 6Section 5. 601.415 (11) of the statutes is created to read:
AB992,4,97 601.415 (11) Interstate insurance receivership commission. The
8commissioner or a designated representative shall serve as a member of the
9interstate insurance receivership commission under ss. 14.83 and 601.59 (3).
AB992, s. 6 10Section 6. 601.59 of the statutes is created to read:
AB992,4,14 11601.59 Interstate insurance receivership compact. The interstate
12insurance receivership compact is hereby enacted into law and entered into by this
13state with all other jurisdictions legally joining therein, in the form substantially as
14follows:
AB992,4,17 15(1) Article I — Purposes. Through means of joint and cooperative action
16among the compacting states, the purposes of this compact include all of the
17following:
AB992,4,1918 (a) To promote, develop and facilitate orderly, efficient, cost-effective and
19uniform insurer receivership laws and operations.
AB992,5,2
1(b) To coordinate interaction between insurer receivership and guaranty
2association operations.
AB992,5,33 (c) To create the interstate insurance receivership commission.
AB992,5,64 (d) To perform these and such other related functions as may be consistent with
5the state regulation of the business of insurance pursuant to the
6McCarran-Ferguson act.
AB992,5,7 7(2) Article II — Definitions. In this compact:
AB992,5,98 (a) "Bylaws" means those bylaws prescribed by the commission for its
9governance, or for directing or controlling the commission's actions or conduct.
AB992,5,1110 (b) "Compacting state" means any state which has enacted enabling legislation
11for this compact.
AB992,5,1312 (c) "Commission" means the interstate insurance receivership commission
13created by this compact.
AB992,5,1414 (d) "Commissioner" means the chief insurance regulatory official of a state.
AB992,5,1715 (e) "Deputy receiver" means any person appointed or retained by a receiver and
16who is the receiver's duly authorized representative for administering one or more
17estates.
AB992,5,2118 (f) "Domiciliary state" means the state in which an insurer is incorporated or
19organized; or, in the case of an alien insurer, its state of entry; or, in the case of an
20unauthorized insurer not incorporated, organized, or entered in any state, a state
21where the insurer is engaged in or doing business.
AB992,5,2222 (g) "Estate" means the assets and liabilities of any insurer in receivership.
AB992,6,223 (h) "Guaranty association" means an insurance guaranty fund or association
24or any similar entity now or hereafter created by statute in a compacting state, other

1than a receivership, to pay or assume, in whole or in part, the contractual claim
2obligations of insolvent insurers.
AB992,6,63 (i) "Insurer" means any person or entity that has done, purports to do, is doing
4or is licensed to do any insurance or reinsurance business, or that is or has been
5subject to the authority of, or to liquidation, rehabilitation, supervision, conservation
6or ancillary receivership by, any commissioner.
AB992,6,97 (j) "Member" means the commissioner of a compacting state or his or her
8designee, who shall be a person officially connected with the commissioner and who
9is wholly or principally employed by the commissioner.
AB992,6,1110 (k) "Noncompacting state" means any state which has not enacted enabling
11legislation for this compact.
AB992,6,1412 (L) "Operating procedures" means those procedures promulgated by the
13commission implementing a rule, an existing law in a compacting state or a provision
14of this compact.
AB992,6,1715 (m) "Publication" means the act of publishing in the official state publication
16in a compacting state or in such other publication as may be established by the
17commission.
AB992,6,1918 (n) "Receiver" means receiver, liquidator, rehabilitator, conservator or ancillary
19receiver as the context requires.
AB992,6,2120 (o) "Receivership" means any liquidation, rehabilitation, conservation or
21ancillary receivership proceeding as the context requires.
AB992,6,2422 (p) "Rules" means acts of the commission, duly promulgated pursuant to sub.
23(7), substantially affecting interested parties in addition to the commission, which
24shall have the force and effect of law in the compacting states.
AB992,6,2525 (q) "State" means any state, district or territory of the United States of America.
AB992,7,10
1(3) Article III — Establishment of the Commission and Venue. The
2compacting states hereby create the interstate insurance receivership commission.
3The commission is a body corporate of each compacting state. The commission is a
4not-for-profit entity, separate and distinct from the compacting states. The
5commission is solely responsible for its liabilities except as otherwise provided in this
6compact. Except as otherwise specifically provided in state or federal law in the
7jurisdiction where the commission's principal office is located or where the
8commission is acting as receiver, venue is proper, and judicial proceedings by or
9against the commission shall be brought, in a court of competent jurisdiction where
10the commission's principal office is located.
AB992,7,12 11(4) Article IV — Powers of the Commission. The commission shall have all
12of the following powers:
AB992,7,1513 (a) To promulgate rules which shall have the force and effect of statutory law
14and shall be binding in the compacting states to the extent and in the manner
15provided in this compact.
AB992,7,1716 (b) To promulgate operating procedures which shall be binding in the
17compacting states to the extent and in the manner provided in this compact.
AB992,7,1918 (c) To oversee, supervise and coordinate the activities of receivers in
19compacting states.
AB992,7,2320 (d) To act as receiver of insurers organized under the laws of, engaged in or
21doing the business of insurance in, a compacting state upon the request of the
22commissioner of such state or when grounds for receivership by the commission exist
23under sub. (9).
AB992,8,3
1(e) To act as deputy receiver of insurers organized under the laws of, engaged
2in or dong the business of insurance in, a noncompacting state in accordance with
3sub. (9).
AB992,8,54 (f) To act as ancillary receiver in a compacting state of an insurer domiciled in
5a noncompacting state.
AB992,8,76 (g) To monitor the activities and functions of guaranty associations in the
7compacting states.
AB992,8,98 (h) To delegate its operating authority or functions; provided, that its
9rule-making authority under sub. (7) shall not be delegated.
AB992,8,1110 (i) To bring or prosecute legal proceedings or actions in its name as the
11commission, or in the name of the commission acting as receiver.
AB992,8,1412 (j) To bring or prosecute legal proceedings or actions as receiver on behalf of an
13estate or its policyholders and creditors; provided, that any guaranty association's
14standing to sue or be sued under applicable law shall not be affected.
AB992,8,1615 (jm) To issue subpoenas requiring the attendance and testimony of witnesses
16and the production of evidence.
AB992,8,1717 (k) To establish and maintain offices.
AB992,8,1818 (L) To purchase and maintain insurance and bonds.
AB992,8,2019 (m) To borrow, accept or contract for services of personnel, including, but not
20limited to, members and their staff.
AB992,8,2421 (n) To elect or appoint such officers, attorneys, employes or agents, and to fix
22their compensation, define their duties and determine their qualifications; and to
23establish the commission's personnel policies and programs relating to, among other
24things, conflicts of interest, rates of compensation and qualifications of personnel.
AB992,9,2
1(o) To accept any and all donations and grants of money, equipment, supplies,
2materials and services, and to receive, utilize and dispose of the same.
AB992,9,43 (p) To lease, purchase, accept gifts or donations of, or otherwise to own, hold,
4improve or use, any property, real, personal or mixed.
AB992,9,65 (pm) To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise
6dispose of any property, real, personal or mixed.
AB992,9,87 (q) To enforce compliance with commission rules, operating procedures and
8bylaws.
AB992,9,99 (r) To provide for dispute resolution among compacting states and receivers.
AB992,9,1210 (s) To represent and advise compacting states on issues relating to insurers
11domiciled or doing business in noncompacting jurisdictions, consistent with the
12purposes of this compact.
AB992,9,1513 (t) To provide advice and training to receivership personnel of compacting
14states, and to be a resource for compacting states by maintaining a reference library
15of relevant materials.
AB992,9,1616 (u) To establish a budget and make expenditures.
AB992,9,1717 (v) To borrow money.
AB992,9,1918 (w) To appoint committees including, but not limited to, an industry advisory
19committee and an executive committee of members.
AB992,9,2120 (x) To provide and receive information relating to receiverships and guaranty
21associations, and to cooperate with law enforcement agencies.
AB992,9,2222 (y) To adopt and use a corporate seal.
AB992,9,2523 (z) To perform such other functions as may be necessary or appropriate to
24achieve the purposes of this compact as may be consistent with the state regulation
25of the business of insurance pursuant to the McCarran-Ferguson act.
AB992,10,6
1(5) Article V — Organization of the Commission. (a) Each compacting state
2shall have one member. Each member shall be qualified to serve in such capacity
3under the applicable law of the compacting state. Each compacting state retains the
4discretionary right to determine the due election or appointment and qualification
5of its own commissioner, and to fill all vacancies of its member. Each member shall
6be entitled to one vote.
AB992,10,97 (b) The commission shall, by a majority of the members, prescribe bylaws to
8govern its conduct as may be necessary or appropriate to carry out the purposes of
9the compact, including, but not limited to, all of the following:
AB992,10,1010 1. Establishing the fiscal year of the commission.
AB992,10,1311 2. Providing reasonable standards and procedures for the establishment of
12committees and governing any general or specific delegation of any authority or
13function of the commission.
AB992,10,1514 3. Providing reasonable procedures for calling and conducting meetings of the
15commission, and ensuring reasonable notice of each such meeting.
AB992,10,1616 4. Establishing the titles and responsibilities of the officers of the commission.
AB992,10,2017 5. Providing reasonable standards and procedures for the establishment of the
18personnel policies and programs of the commission. Notwithstanding any civil
19service or other similar laws of any compacting state, the bylaws shall exclusively
20govern the personnel policies and programs of the commission.
AB992,10,2321 6. Providing a mechanism for winding up the operations of the commission and
22the equitable return of any surplus funds that may exist after the dissolution of the
23compact after the payment or reserving of all of its debts and obligations.
AB992,11,724 (c) The commission shall, by a majority of the members, elect annually from
25among its members a chairperson and a vice chairperson, each of whom shall have

1such authorities and duties as may be specified in the bylaws. The chairperson or,
2in his or her absence or disability, a member designated in accordance with the
3bylaws, shall preside at all meetings of the commission. The officers so elected shall
4serve without compensation or remuneration from the commission; provided that,
5subject to the availability of budgeted funds, the officers shall be reimbursed for any
6actual and necessary costs and expenses incurred by them in the performance of
7their duties and responsibilities as officers of the commission.
AB992,11,138 (d) The commission may, by a majority of the members, appoint or retain an
9executive director for such period, upon such terms and conditions and for such
10compensation as the commission determines appropriate. The executive director
11shall serve as secretary to the commission, but shall not be a member of the
12commission. The executive director shall hire and supervise such other staff as may
13be authorized by the commission.
AB992,11,1514 (e) The commission shall maintain its corporate books and records in
15accordance with the bylaws.
AB992,11,2516 (f) The members, officers, executive director and employes of the commission
17shall be immune from suit and liability, either personally or in their official capacity,
18for any claim for damage to or loss of property or personal injury or other civil liability
19caused or arising out of or relating to any actual or alleged act, error or omission that
20occurred, or that such person had a reasonable basis for believing occurred within
21the scope of commission employment, duties or responsibilities; provided, that
22nothing in this paragraph shall be construed to protect any such person from suit or
23liability for any damage, loss, injury or liability caused by the intentional or wilful
24and wanton misconduct of any such person, or to protect the commission acting as
25receiver under sub. (9).
AB992,12,8
1(g) The commission shall defend any commissioner of a compacting state, or his
2or her representatives or employes, or the commission's representatives or employes,
3in any civil action seeking to impose liability, arising out of or relating to any actual
4or alleged act, error or omission that occurred within the scope of commission
5employment, duties or responsibilities, or that such person had a reasonable basis
6for believing occurred within the scope of commission employment, duties or
7responsibilities; provided, that the actual or alleged act, error or omission did not
8result from gross negligence or intentional wrongdoing on the part of such person.
AB992,12,179 (h) The commission shall indemnify and hold the commissioner of a compacting
10state, or his or her representatives or employes, or the commission's representatives
11or employes, harmless in the amount of any settlement or judgment obtained against
12such person arising out of or relating to any actual or alleged act, error or omission
13that occurred within the scope of commission employment, duties or responsibilities,
14or that such person had a reasonable basis for believing occurred within the scope
15of commission employment, duties or responsibilities; provided, that the actual or
16alleged act, error or omission did not result from gross negligence or intentional
17wrongdoing on the part of such person.
AB992,12,2118 (i) The costs and expenses of defense and indemnification of the commission
19acting as receiver of an estate shall be paid as administrative expenses from the
20assets of that estate unless such costs and expenses are covered by insurance
21maintained by the commission.
AB992,12,24 22(6) Article VI — Meetings and Acts of the Commission. (a) The commission
23shall meet and take such actions as are consistent with the provisions of this
24compact.
AB992,13,4
1(b) Except as otherwise provided in this compact and unless a greater
2percentage is required by the bylaws, in order to constitute an act of the commission,
3such act shall have been taken at a meeting of the commission and shall have
4received an affirmative vote of a majority of the members.
AB992,13,95 (c) Each member of the commission shall have the right and power to cast a vote
6to which that compacting state is entitled and to participate in the business and
7affairs of the commission. A member shall vote in person and may not delegate his
8or her vote to another member. The bylaws may provide for members' participation
9in meetings by telephone or other means of telecommunication.
AB992,13,1210 (d) The commission shall meet at least once during each calendar year. The
11chairperson of the commission may call additional meetings at any time and, upon
12the request of a majority of the members, shall call additional meetings.
AB992,13,2413 (e) The commission's rules shall establish conditions and procedures under
14which the commission shall make its information and official records available to the
15public for inspection or copying. The commission may exempt from disclosure any
16information or official records to the extent disclosure would adversely affect
17personal privacy rights or proprietary interests. In promulgating such rules, the
18commission may consider any special circumstances pertaining to insurer
19insolvencies, but shall be guided by the principles embodied in state and federal
20freedom of information laws. The commission may promulgate additional rules
21under which it may make available to law enforcement agencies records and
22information otherwise exempt from disclosure, and may enter into agreements with
23law enforcement agencies to receive or exchange information or records subject to
24nondisclosure and confidentiality provisions.
AB992,14,6
1(f) Public notice shall be given of all meetings and all meetings shall be open
2to the public, except as set forth in the rules or as otherwise provided in this compact.
3The commission shall promulgate rules consistent with the principles contained in
4the government in sunshine act, 5 USC 552b. The commission and any of its
5committees may close a meeting to the public if it determines by two-thirds vote that
6an open meeting would likely do any of the following:
AB992,14,87 1. Relate solely to the commission's internal personnel practices and
8procedures.
AB992,14,99 2. Disclose matters specifically exempted from disclosure by statute.
AB992,14,1110 3. Disclose trade secrets or commercial or financial information which is
11privileged or confidential.
AB992,14,1212 4. Involve accusing any person of a crime or formally censuring any person.
AB992,14,1413 5. Disclose information of a personal nature where disclosure would constitute
14a clearly unwarranted invasion of personal privacy.
AB992,14,1515 6. Disclose investigatory records compiled for law enforcement purposes.
AB992,14,1916 7. Disclose information contained in or related to examination, operating or
17condition reports prepared by, or on behalf or for the use of, the commission with
18respect to a regulated entity for the purpose of regulation or supervision of such
19entity.
AB992,14,2120 8. Disclose information, the premature disclosure of which would significantly
21endanger the stability of a regulated entity.
AB992,14,2322 9. Specifically relate to the commission's issuance of a subpoena or its
23participation in a civil action or proceeding.
AB992,15,724 (g) For every meeting closed under par. (f), the commission's chief legal officer
25shall publicly certify that, in his or her opinion, the meeting may be closed to the

1public, and shall reference each relevant exemptive provision. The commission shall
2keep minutes which shall fully and clearly describe all matters discussed in any
3meeting and shall provide a full and accurate summary of any actions taken, and the
4reasons therefor, including a description of each of the views expressed on any item
5and the record of any rollcall vote, reflected in the vote of each member on the
6question. All documents considered in connection with any action shall be identified
7in the minutes.
AB992,15,11 8(7) Article VII — Rule-making Functions of the Commission. (a) The
9commission shall promulgate rules and operating procedures in order to effectively
10and efficiently achieve the purposes of this compact; provided, that the commission
11shall not promulgate any rules that do any of the following:
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