LRB-3267/2
PJK:kjf:pg
2005 - 2006 LEGISLATURE
October 6, 2005 - Introduced by Representatives Gielow, Nischke, Ainsworth,
Albers, Bies, Gunderson, Hahn, Hines, Hundertmark, McCormick, Nerison,
Ott and Strachota, cosponsored by Senators Darling, Lassa and Roessler.
Referred to Committee on Insurance.
AB737,1,2
1An Act to amend 619.04 (6) (a) of the statutes;
relating to: return of funds in
2excess of surplus and incurred liabilities.
Analysis by the Legislative Reference Bureau
Under current law, the commissioner of insurance is required to promulgate
rules establishing a plan of health care liability that offers professional health care
liability coverage for health care providers. The statutes specify the make-up of the
board of governors that operates the plan and how rates are to be determined. If the
plan accumulates funds in excess of incurred liabilities and the surplus required
under law, the board of governors is required to return those excess funds, by means
of refunds or prospective rate decreases, to the insureds, who may be employees of
the health care providers or other persons that actually paid the premiums. This bill
requires the board of governors to return those excess funds to the persons that paid
the premiums, rather than to the insureds.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB737, s. 1
3Section
1. 619.04 (6) (a) of the statutes is amended to read:
AB737,2,34
619.04
(6) (a) If the plan accumulates funds in excess of the surplus required
5under s. 619.01 (1) (c) 2. and incurred liabilities, including reserves for claims
1incurred but not yet reported, the board of governors shall return those excess funds
2to the
insureds persons that paid the premiums by means of refunds or prospective
3rate decreases.
