601.59(8)(b)2.
2. An initial report of the status of an insurer within a reasonable time after the initiation of a receivership.
601.59(8)(c)
(c) The commission shall promulgate operating procedures requiring receivers to submit to the commission periodic written reports and such additional information and documentation as the commission may reasonably request. Each compacting state's receivers shall establish the capability to obtain and provide all records, data and information required by the commission in accordance with the commission's operating procedures.
601.59(8)(d)
(d) Except as to privileged records, data and information, the laws of any compacting state pertaining to confidentiality or nondisclosure shall not relieve any compacting state commissioner of the responsibility to disclose any relevant records, data or information to the commission; provided, that disclosure to the commission shall not be deemed to waive or otherwise affect any confidentiality requirement; and further provided, that the commission shall be subject to the compacting state's laws pertaining to confidentiality and nondisclosure with respect to all such records, data and information in its possession.
601.59(8)(e)
(e) The courts and executive agencies in each compacting state shall enforce this compact and shall take all actions necessary and appropriate to effectuate the compact's purposes and intent. In any receivership or other judicial or administrative proceeding in a compacting state pertaining to the subject matter of this compact which may affect the powers, responsibilities or actions of the commission, the commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the receivership or proceeding for all purposes.
601.59(8)(f)
(f) The commission shall analyze and correlate records, data, information and reports received from receivers and guaranty associations, and shall make recommendations for improving their performance to the compacting states. The commission shall include summary information and data regarding its oversight functions in its annual report.
601.59(8)(g)
(g) The commission shall attempt, upon the request of a member, to resolve any disputes or other issues which are subject to this compact and which may arise among compacting states and noncompacting states.
601.59(8)(h)
(h) The compacting states shall report to the commission on issues or activities of concern to them, and cooperate with and support the commission in the discharge of its duties and responsibilities.
601.59(8)(i)
(i) The commission shall promulgate an operating procedure providing for binding dispute resolution for disputes among receivers.
601.59(8)(j)
(j) The commission shall facilitate voluntary dispute resolution for disputes among guaranty associations and receivers.
601.59(9)
(9) Article IX — Receivership Functions of the Commission. 601.59(9)(a)(a) The commission has authority to act as receiver of any insurer domiciled, engaged in or doing business in a compacting state upon the request of the commissioner of such compacting state, or as otherwise provided in this compact. As receiver, the commission shall have all powers and duties pursuant to the receivership laws of the domiciliary state. The commission shall maintain accounts of receipts and disbursements of the estates for which it is acting as receiver, consistent with the accounting practices and procedures set forth in the bylaws. The commission shall cause an annual audit of each estate for which it is acting as receiver to be conducted by an independent certified public accountant. The costs and expenses of such audit shall be paid as administrative expenses from the assets of the estate. The commission may not cause an annual audit to be conducted of any estate which lacks sufficient assets to pay the costs and expenses of such audit. The commission as receiver may delegate its receivership duties and functions, and may contract with others for that purpose.
601.59(9)(b)
(b) The commission shall act as receiver of any insurer domiciled or doing business in a compacting state in the event that the member acting as receiver in that compacting state fails to comply with duly promulgated commission rules or operating procedures. The commission shall notify the member in writing of his or her noncompliance with commission rules or operating procedures. If the member acting as receiver fails to remedy the noncompliance within 10 days after receipt of the notification, the commission may petition the supervising court before which the receivership is pending for an order substituting and appointing the commission as receiver of the estate.
601.59(9)(c)
(c) The commission may not act as receiver of an estate that appears to lack sufficient assets to fund such receivership unless the compacting state makes provisions for the payment of the estate's administrative expenses satisfactory to the commission.
601.59(9)(d)
(d) The commission may act as deputy receiver for any insurer domiciled or doing business in a noncompacting state in accordance with that state's laws, upon request of that noncompacting state's commissioner and approval of the commission.
601.59(9)(e)
(e) With respect to receiverships pending in a compacting state on July 11, 1996, all of the following apply:
601.59(9)(e)1.
1. The commission may act as receiver of an insurer upon the request of that compacting state's member and approval of the commission.
601.59(9)(e)2.
2. The commission shall oversee, monitor and coordinate the activities of all receiverships pending in that compacting state regardless of whether the commission is acting as receiver of estates in that state.
601.59(10)(g)(g) The commission shall be exempt from all taxation in and by the compacting states.
601.59(10)(h)
(h) The commission may not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state.
601.59(10)(i)
(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.
601.59(10)(j)
(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.
601.59(11)
(11) Article XI — Compacting States, Effective Date and Amendment. 601.59(11)(a)(a) Any state is eligible to become a compacting state.
601.59(11)(b)
(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.
601.59(11)(c)
(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.
601.59(12)
(12) Article XII — Withdrawal, Default and Termination. 601.59(12)(a)(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.
601.59(12)(b)
(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.
601.59(12)(c)
(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.
601.59(12)(d)
(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).
601.59(12)(f)
(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.
601.59(12)(g)
(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.
601.59(12)(h)
(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.
601.59(12)(i)
(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.
601.59(12)(k)
(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.
601.59(12)(L)
(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.
601.59(12)(m)
(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.
601.59(13)
(13) Article XIII — Severability and Construction. 601.59(13)(a)(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.
601.59(14)
(14) Article XIV — Binding Effect of Compact and Other Laws. 601.59(14)(a)(a) Nothing herein prevents the enforcement of any other law of a compacting state that is not inconsistent with this compact.
601.59(14)(b)
(b) All lawful actions of the commission, 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.
601.59(14)(c)
(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.
601.59 History
History: 1995 a. 462.
PROCEDURES AND ENFORCEMENT
601.61
601.61
Auxiliary procedural powers. The commissioner may administer oaths, take testimony, issue subpoenas and take depositions in connection with any hearing, meeting, examination, investigation or other proceeding that the commissioner may conduct.
601.61 History
History: 1979 c. 102 s.
236 (6).
601.62(1)(1)
Hearing required. Whenever
chs. 600 to
655 expressly so provide, the commissioner shall hold a hearing before issuing an order.
601.62(2)
(2) Special insurance hearings. Chapter 227 shall apply to all hearings under
chs. 600 to
655, except those for which special procedures are prescribed.
601.62(3)
(3) Adjudicatory hearings. In addition to the requirements of
ch. 227, the following provisions apply:
601.62(3)(a)
(a)
Subsequent hearings. Whenever an order is issued without a hearing, any person aggrieved by the order may demand a hearing within 30 days after the date on which the notice of the order was mailed. Failure to demand a hearing within the period prescribed therefor is waiver of a hearing. The demand shall be in writing and shall be served on the commissioner by delivering a copy to the commissioner or by leaving it at the commissioner's office. The commissioner shall thereupon hold a hearing not less than 10 nor more than 60 days after service of the demand.
601.62(3)(c)
(c)
Reduction and extension of periods. Upon request of the person demanding the hearing or of any other aggrieved person, the commissioner may reduce or extend the period prescribed by
par. (a) for holding a hearing.
601.62(4)
(4) Fees in investigations and hearings. The fees for stenographic services in investigations, examinations and hearings may not exceed the sum provided for like services in the circuit court. The fees of officers, witnesses, interpreters and stenographers on behalf of the commissioner or the state shall be paid by the state treasurer upon the warrant of the department of administration, authorized by the certificate of the commissioner, and shall be charged to the appropriation under
s. 20.145 (1) (g).
601.62(5)(a)(a) No natural person is excused from attending and testifying or from producing any document or record before the commissioner, or from obedience to the subpoena of the commissioner, or from appearing in any proceeding instituted by the commissioner, on the ground that the testimony or evidence required from the person may tend to incriminate the person or subject the person to a penalty or forfeiture; but no such person may be criminally prosecuted for or on account of his or her testimony or evidence, after claiming privilege against self-incrimination, except that the person testifying is not exempt from prosecution and punishment for perjury, false swearing or contempt committed in testifying.
601.62 Cross-reference
Cross Reference: See also ch.
Ins 5, Wis. adm. code.
601.62 Annotation
Legislative Council Note on sub. (5), 1975: This replaces ss. 207.13 and 201.53 (11) and (12) [repealed by this act]. Section 207.13 was in the unfair insurance business methods chapter but applied in terms "to any hearing". This new provision is even broader in proceedings covered. It is modeled after the securities act provision (s. 551.56 (3) of the statutes) with one phrase deleted because s. 601.18 makes it unnecessary, and other changes, some editorial and one limiting the scope of the immunity to criminal prosecution. Other similar provisions are to be found in s. 93.17 (department of agriculture), s. 97.20 (10) (same; food regulation), s. 111.07 (employment relations commission), 196.48 (public service commission), and s. 972.08 (criminal proceedings). Section 201.53 (11) and (12) only applied in terms to s. 201.53, which contained a miscellaneous group of provisions, mostly concerning unfair marketing practices, but it applied very broadly to all proceedings and, apparently, even informal requests for information. [Bill 16-S]
601.63
601.63
Notice and effective date of orders. 601.63(1)
(1)
Notice to person addressed by order. Notice of any order by the commissioner shall be served under
s. 227.48.
601.63(2)
(2) Notification to agents of revocation of certificate of authority of insurer. Upon issuance of any order limiting, suspending or revoking an insurer's authority to do business in this state, the commissioner shall notify by mail all agents of the insurer of whom the commissioner has record. The commissioner shall also publish a class 1 notice of the order under
ch. 985.
601.63(3)
(3) Delay of effective date. Except as provided in
sub. (4) or as expressly provided otherwise by statute, all orders of the commissioner shall take effect 10 days after notice under
sub. (1) or at a later date specified in the order.
601.63(3m)
(3m) Hearing request. If the order was issued without a hearing, any person aggrieved by the order may demand a hearing under
s. 601.62 (3) (a). If no demand for a hearing is made within the prescribed time, the order is final.
601.63(4)
(4) Suspension of order. Whenever a hearing is demanded under
s. 601.62 (3) (a) or a rehearing is requested under
s. 227.49, the commissioner may suspend the order or any part thereof until after the hearing or rehearing. If the commissioner refuses to suspend the order, any person aggrieved thereby may seek a court order under
ch. 813 to restrain enforcement of the order until after the hearing or rehearing.
601.63(5)
(5) Actions subject to approval or disapproval. 601.63(5)(a)(a) Required approval. Whenever the law requires the commissioner's approval for a certain action, the action is not effective until expressly approved. The approval is deemed refused if the commissioner does not act within 60 days after receiving the application for approval.
601.63(5)(b)
(b)
Reserved disapproval. Whenever the law provides that a certain action does not become effective if disapproved by the commissioner within a certain period, the action may be made effective prior to the expiration of the period by being affirmatively approved by the commissioner.
601.63(5)(c)
(c)
Specific provisions. Paragraphs (a) and
(b) do not apply to the extent that the law specifically provides otherwise.
601.64
601.64
Enforcement procedure. 601.64(1)
(1)
Injunctions and restraining orders. The commissioner may commence an action in circuit court in the name of the state to restrain by temporary or permanent injunction or by temporary restraining order any violation of
chs. 600 to
655,
s. 149.13 or
149.144, any rule promulgated under
chs. 600 to
655 or any order issued under
s. 601.41 (4). Except as provided in
s. 641.20, the commissioner need not show irreparable harm or lack of an adequate remedy at law in an action commenced under this subsection.
601.64(2)
(2) Compulsive forfeitures. If a person does not comply with an order issued under
s. 601.41 (4) within 2 weeks after the commissioner has given the person notice of the commissioner's intention to proceed under this subsection, the commissioner may commence an action for a forfeiture in such sum as the court considers just, but not exceeding $5,000 for each day that the violation continues after the commencement of the action until judgment is rendered. No forfeiture may be imposed under this subsection if at the time the action was commenced the person was in compliance with the order, nor for any violation of an order occurring while any proceeding for judicial review of the order was pending, unless the court in which the proceeding was pending certifies that the claim of invalidity or nonapplicability of the order was frivolous or a sham. If after judgment is rendered the person does not comply with the order, the commissioner may commence a new action for a forfeiture and may continue commencing actions until the person complies. The proceeds of all actions under this subsection, after deduction of the expenses of collection, shall be paid into the common school fund of the state.
601.64(3)
(3) Forfeitures and civil penalties. 601.64(3)(a)(a)
Restitutionary forfeiture. Whoever violates an effective order issued under
s. 601.41 (4), any insurance statute or rule or
s. 149.13 or
149.144 shall forfeit to the state twice the amount of any profit gained from the violation, in addition to any other forfeiture or penalty imposed.
601.64(3)(b)
(b)
Forfeiture for violation of order. Whoever violates an order issued under
s. 601.41 (4) which is effective under
s. 601.63 shall forfeit to the state not more than $1,000 for each violation. Each day that the violation continues is a separate offense.
601.64(3)(c)
(c)
Forfeiture for violation of statute or rule. Whoever violates an insurance statute or rule or
s. 149.13 or
149.144, intentionally aids a person in violating an insurance statute or rule or
s. 149.13 or
149.144 or knowingly permits a person over whom he or she has authority to violate an insurance statute or rule or
s. 149.13 or
149.144 shall forfeit to the state not more than $1,000 for each violation. If the statute or rule imposes a duty to make a report to the commissioner, each week of delay in complying with the duty is a new violation.
601.64(3)(d)
(d)
Procedure. The commissioner may order any person to pay a forfeiture imposed under this subsection or
s. 601.65, which shall be paid into the common school fund. If the order is issued without a hearing, the affected person may demand a hearing under
s. 601.62 (3) (a). If the person fails to request a hearing, the order is conclusive as to the person's liability. The scope of review for forfeitures ordered is that specified under
s. 227.57. The commissioner may cause action to be commenced to recover the forfeiture. Before an action is commenced, the commissioner may compromise the forfeiture.
601.64(4)
(4) Criminal penalty. Whoever intentionally violates or intentionally permits any person over whom he or she has authority to violate or intentionally aids any person in violating any insurance statute or rule of this state,
s. 149.13 or
149.144 or any effective order issued under
s. 601.41 (4) is guilty of a Class I felony, unless a specific penalty is provided elsewhere in the statutes. Intent has the meaning expressed under
s. 939.23.
Effective date note
NOTE: Sub. (4) is shown as amended eff. 2-1-03 by
2001 Wis. Act 109. Prior to 2-1-03 it reads:
Effective date text
(4) Criminal penalty. Whoever intentionally violates or intentionally permits any person over whom he or she has authority to violate or intentionally aids any person in violating any insurance statute or rule of this state, s. 149.13 or 149.144 or any effective order issued under s. 601.41 (4) may, unless a specific penalty is provided elsewhere in the statutes, be fined not more than $10,000 if a corporation or if a natural person be fined not more than $5,000 or imprisoned for not more than 4 years and 6 months or both. Intent has the meaning expressed under s. 939.23.
601.64(5)
(5) Revocation, suspension and limitation of licenses. Whenever a licensee of the office other than an insurer, a motor club, an adjuster or an insurance intermediary persistently or substantially violates
chs. 600 to
646 or an order of the commissioner under
s. 601.41 (4), or if the licensee's methods and practices in the conduct of business endanger, or financial resources are inadequate to safeguard, the legitimate interests of customers and the public, the commissioner may, after a hearing, in whole or in part revoke, suspend or limit the license.
601.64 Annotation
Legislative Council Note on sub. (5), 1975: This amendment removes insurance intermediaries from the purview of the subsection. Under this act, revocation of an intermediary's license will be governed by s. 628.10 (2). [Bill 16-S]
601.65
601.65
Marketing firm forfeitures. 601.65(1)
(1) In this section "firm" means a person that markets insurance but does not include an insurer.
