Interest under s. 807.01 (4) is not in addition to interest under sub. (1). Upthegrove v. Lumbermans Insurance Co. 152 Wis. 2d 7
, 447 N.W.2d 367
(Ct. App. 1989).
This section makes no distinction between the payment of claims based on judgments and all other claims; a claim may be due under sub. (2) far in advance of a judgment or award. Fritsche v. Ford Motor Credit Co. 171 Wis. 2d 280
, 491 N.W.2d 119
(Ct. App. 1992).
Whether to assess 12% interest is dependent on whether the insurer had reasonable proof establishing that it was not responsible for payment. U.S. Fire Insurance Co. v. Good Humor Corp. 173 Wis. 2d 804
, 496 N.W.2d 730
(Ct. App. 1993).
This section applies to the insurance company of a negligent tortfeasor and, thus, allows the recovery of interest by a 3rd-party claimant. When there is clear liability, a sum certain owed, and written notice of both, the plain language of this section, incorporating by reference s. 646.31 (2), imposes 12% simple interest on overdue payments to 3rd-party claimants. Kontowicz v. American Standard Insurance Co. of Wisconsin, 2006 WI 48
, 290 Wis. 2d 302
, 714 N.W.2d 105
An insurer's subrogation interest did not permit it to step into the insured's shoes to assert a 12% interest claim under the facts and circumstances of the case. Legal subrogation gives indemnity only, and an insurer who possesses a cause of action for subrogation cannot recover beyond the amount actually dispersed by it. Zurich American Insurance Company v. Wisconsin Physicians Services Insurance Corporation, 2007 WI App 259
, 306 Wis. 2d 617
, 743 N.W.2d 710
"Reasonable proof" in sub. (1) means that amount of information that is sufficient to allow a reasonable insurer to conclude that it may not be responsible for payment of a claim. Generally, reasonable proof is equated with whether coverage is considered "fairly debatable." An insurer should not have been penalized for exercising its right to litigate when policy language was ambiguous, the court of appeals was divided on the question of coverage, the issue of coverage was one of 1st impression in this state, and administrative rules were subsequently modified to clarify required coverage. Froedtert Memorial Lutheran Hospital, Inc. v. National States Insurance Company, 2009 WI 33
, 317 Wis. 2d 54
, 765 N.W.2d 251
This section applies to all insurers. Allison v. Ticor Title Ins. Co. 979 F.2d 1187
Excess liability insurance. Griffin. 62 MLR 375 (1979).
Risk retention groups. 628.48(1)
A risk retention group may not do any of the following:
Solicit or sell insurance to any person who is not eligible for membership in the risk retention group.
Solicit or sell insurance or otherwise operate if the risk retention group is in a hazardous financial condition or is financially impaired.
(2) Notice in policies.
A risk retention group may not issue an insurance policy unless the following notice, in 10-point type, is included on the front page and declarations page of the policy:
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
History: 1987 a. 247
Regulation of managing general agents, reinsurance brokers and managers and controlling producers.
After considering the applicable model acts adopted by the National Association of Insurance Commissioners, the commissioner may promulgate rules that are reasonably necessary to regulate the business practices and transactions of the following:
Intermediaries that control an insurer.
History: 1991 a. 269
COMPENSATION OF INTERMEDIARIES
No intermediary may receive any compensation from an insurer for effecting insurance upon the intermediary's property, life or other risk unless during the preceding 12 months the intermediary had effected other insurance with the same insurer with aggregate premiums exceeding the premiums on the intermediary's risks.
History: 1975 c. 371
Sharing commissions. 628.61(1)(1)
No intermediary or insurer may pay any consideration, nor reimburse out-of-pocket expenses, to any natural person for services performed within this state as an intermediary if he or she knows or should know that the payee is not licensed under s. 628.04
. No natural person may accept compensation for service performed as an intermediary unless the natural person is licensed under s. 628.04
This section does not prohibit:
The payment of deferred commissions to formerly licensed agent and broker intermediaries or their assignees; or
The proper exchange of business between agent and broker intermediaries lawfully licensed in this state.
See also s. Ins 6.66
, Wis. adm. code.
Benefit plans for agents.
A domestic insurer may establish retirement, insurance and other benefit plans for agents on an actuarial basis approved by the commissioner.
History: 1975 c. 371
Filing of commission rates paid to agents and brokers.
Every insurer shall at or prior to the filing of its application for a certificate of authority file such information as the commissioner requests about the percentages and kinds of commissions paid to agents and brokers within this state, as well as the amounts of any fixed salaries if they are supplemented by commissions. It shall supply amended information promptly after any major change, and whenever the commissioner requests by rule or by order.
History: 1975 c. 371