SB372: Bill Text

SB372,21,19 (d) The commission shall be reimbursed in the following manner for the costs and expenses incurred by the commission and its staff acting as receiver of estates to the extent that an insurer's assets may be insufficient for the effective administration of its estate:

SB372,21,21 1. If the insurer is domiciled in a compacting state, the estate shall be closed unless that compacting state makes provisions for reimbursing the commission.

SB372,21,25 2. If the insurer is unauthorized to do business in a compacting state or if the insurer is domiciled in a noncompacting state and subject to ancillary receivership, the commission and such state shall make provisions for reimbursing the commission prior to the commission becoming receiver of such insurer.

SB372,22,5 (e) To fund the cost of the initial operations of the commission until its first annual budget is adopted and related assessments have been made, contributions from compacting states and others may be accepted and a one-time assessment on insurers doing a direct insurance business in the compacting states may be made not to exceed $450 per insurer.

SB372,22,13 (f) The commission's adopted budget for a fiscal year may not be approved until it has been subject to notice and comment as set forth for rules and operating procedures in sub. (7) (e). The budget shall determine the amount of the annual assessment. The commission may accumulate a net worth not to exceed 30% of its then annual cost of operation to provide for contingencies and events not contemplated. These accumulated funds shall be held separately and may not be used for any other purpose. The commission's budget may include a provision for a contribution to the commission's net worth.

SB372,22,15 (g) The commission shall be exempt from all taxation in and by the compacting states.

SB372,22,17 (h) The commission may not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state.

SB372,23,9 (i) The commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds, other than receivership assets, under its control. The internal financial accounts of the commission shall be subject to the accounting procedures established under its bylaws. The financial accounts and reports including the system of internal controls and procedures of the commission shall be audited annually by an independent certified public accountant. Upon the determination of the commission, but no less frequently than every 3 years, the review of such independent auditor shall include a management and performance audit of the commission. The report of such independent audit shall be made available to the public and shall be included in and become part of the annual report of the commission to the governors and legislatures of the compacting states. The commission's internal accounts, any workpapers related to any internal audit and any workpapers related to the independent audit, shall be confidential; provided, that such materials shall be made available in compliance with the order of any court of competent jurisdiction, pursuant to such reasonable rules as the commission shall promulgate and to any commissioner or governor of a compacting state, or their duly authorized representatives.

SB372,23,12 (j) No compacting state shall have any claim to or ownership of any property held by or vested in the commission or the commission acting as receiver or to any other commission funds held pursuant to the provisions of this compact.

SB372,23,14 (11) Article XI — Compacting States, Effective Date and Amendment. (a) Any state is eligible to become a compacting state.

SB372,23,18 (b) The compact shall become effective and binding upon legislative enactment of the compact into law by 2 compacting states. Thereafter, it shall become effective and binding as to any other compacting state upon enactment of the compact into law by that state.

SB372,23,22 (c) Amendments to the compact may be proposed by the commission for enactment by the compacting states. No amendment shall become effective and binding upon the commission and the compacting states unless and until it is enacted into law by unanimous consent of the compacting states.

SB372,24,2 (12) Article XII — Withdrawal, Default and Termination. (a) Once effective, the compact shall continue in force and remain binding upon each and every compacting state; provided, that a compacting state may withdraw from the compact by repealing the statute which enacted the compact into law.

SB372,24,6 (b) The effective date of withdrawal is the effective date of the repeal; provided, that the repeal shall not apply to any receiverships for which the commission is acting as receiver that are pending on the date of the repeal except by mutual agreement of the commission and the withdrawing state.

SB372,24,9 (c) The withdrawing state shall immediately notify the chairperson of the commission in writing upon the introduction of legislation repealing this compact in the withdrawing state.

SB372,24,12 (d) The commission shall notify the other compacting states of the withdrawing state's intention to withdraw within 60 days after its receipt of the notice under par. (c).

SB372,24,22 (e) The withdrawing state is responsible for all assessments, obligations and liabilities incurred through the effective date of withdrawal, including any obligations, the performance of which extend beyond the effective date of withdrawal, except to the extent those obligations may have been released or relinquished by mutual agreement of the commission and the withdrawing state. Notwithstanding the foregoing, the withdrawing state is responsible for the costs and expenses of its estates subject to this compact that are pending on the date of repeal; the commission and the other estates subject to this compact shall not bear any costs or expenses related to the withdrawing state's estates unless otherwise mutually agreed upon between the commission and the withdrawing state.

SB372,24,25 (f) Reinstatement following withdrawal of any compacting state shall occur upon the withdrawing state reenacting the compact or upon a later date determined by the commission.

SB372,25,15 (g) If the commission determines that any compacting state has at any time defaulted in the performance of any of its obligations or responsibilities under this compact, the bylaws or duly promulgated rules, all rights, privileges and benefits conferred by this compact and any agreements entered into pursuant to this compact shall be suspended from the effective date of default as fixed by the commission. The grounds for default include, but are not limited to, failure of a compacting state to perform such obligations or responsibilities and any other grounds designated in commission rules. The commission shall immediately notify the defaulting state in writing of the defaulting state's suspension pending a cure of the default. The commission shall stipulate the conditions and the time period within which the defaulting state must cure its default. If the defaulting state fails to cure the default within the time period specified by the commission, the defaulting state shall be terminated from the compact upon an affirmative vote of a majority of the compacting states and all rights, privileges and benefits conferred by this compact shall be terminated from the effective date of termination.

SB372,25,18 (h) Within 60 days after the effective date of termination of a defaulting state, the commission shall notify the governor and the majority and minority leaders of the defaulting state's legislature of such termination.

SB372,25,21 (i) The termination of a defaulting state shall apply to all receiverships for which the commission is acting as receiver that are pending on the effective date of termination except by mutual agreement of the commission and the defaulting state.

SB372,26,3 (j) The defaulting state is responsible for all assessments, obligations and liabilities incurred through the effective date of termination, and is responsible for the costs and expenses relating to its estates subject to this compact that are pending on the date of the termination. The commission and the other estates subject to this compact shall not bear any costs or expenses relating to the defaulting state's estates unless otherwise mutually agreed upon between the commission and the defaulting state.

SB372,26,6 (k) Reinstatement following termination of any compacting state requires both a reenactment of the compact by the defaulting state and the approval of the commission pursuant to the rules.

SB372,26,9 (L) The compact dissolves effective upon the date of the withdrawal or the termination by default of the compacting state which reduces membership in the compact to one compacting state.

SB372,26,13 (m) Upon the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the commission shall be wound up and any surplus funds shall be distributed in accordance with the bylaws.

SB372,26,17 (13) Article XIII — Severability and Construction. (a) The provisions of this compact shall be severable, and if any phrase, clause, sentence or provision is declared unenforceable by a court of competent jurisdiction, the remaining provisions of the compact shall be enforceable.

SB372,26,19 (b) The provisions of this compact shall be liberally construed to effectuate its purposes.

SB372,26,23 (14) Article XIV — Binding Effect of Compact and Other Laws. (a) Nothing herein prevents the enforcement of any other law of a compacting state that is not inconsistent with this compact. All compacting states' laws conflicting with this compact are superseded to the extent of the conflict.

SB372,27,5 (b) All lawful actions of the commission, including all rules and operating procedures promulgated by the commission, are binding upon the compacting states. All agreements between the commission and the compacting states are binding in accordance with their terms. Upon the request of a party to a conflict over meaning or interpretation of commission actions, and upon a majority vote of the compacting states, the commission may issue advisory opinions regarding such meaning or interpretation.

SB372,27,12 (c) In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers or jurisdiction sought to be conferred by such provision upon the commission shall be ineffective and such obligations, duties, powers or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers or jurisdiction are delegated by law in effect at the time this compact becomes effective.

SB372,27,13 (End)