Date of enactment: June 6, 1996
1995 Senate Bill 533 Date of publication*: June 20, 1996
* Section 991.11, Wisconsin Statutes 1993-94: Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication as designated" by the secretary of state [the date of publication may not be more than 10 working days after the date of enactment].
1995 WISCONSIN ACT 396
An Act to renumber 623.06 (1); to renumber and amend 623.06 (5) and 646.31 (2) (a); to amend 601.31 (1) (p), 601.62 (3) (a), 601.64 (3) (d), 601.72 (1) (intro.), 601.72 (2), 601.72 (3), 601.73 (1) (intro.), 601.73 (2) (c), 623.06 (6), 645.08 (2) and 646.51 (6); to repeal and recreate 601.72 and 601.73 (1) (intro.); and to create 601.63 (3m), 601.715, 623.06 (1c), 623.06 (1m), 623.06 (5) (b), 628.345, 646.01 (1) (a) 2. i. and 646.31 (2) (f) of the statutes; relating to: accreditation for certain insurers, immunity for acts related to regulation of insurer solvency, claims under the insurance security fund, service of process on insurers, prohibited practices regarding disciplined agents, insurance hearing procedures and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
396,1 Section 1. 601.31 (1) (p) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
601.31 (1) (p) For substituted service of process on the commissioner under s. 601.72 (2), $10.
396,1c Section 1c. 601.62 (3) (a) of the statutes is amended to read:
601.62 (3) (a) Subsequent hearings. Whenever an order is issued without a hearing, any person aggrieved by the order may demand a hearing within 20 30 days after receiving 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 30 60 days after service of the demand.
396,1f Section 1f. 601.63 (3m) of the statutes is created to read:
601.63 (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.
396,1m Section 1m. 601.64 (3) (d) of the statutes is amended to read:
601.64 (3) (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. The 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.
396,2 Section 2. 601.715 of the statutes is created to read:
601.715 Registered agent for service of process. (1) Every authorized insurer shall continuously maintain in this state a registered agent for service of process, notice or demand on the insurer. The authorized insurer shall file the name and address of the registered agent with the commissioner. The registered agent may be any of the following:
(a) A natural person who resides in this state.
(b) A domestic corporation, nonstock corporation or limited liability company incorporated or organized in this state with a business office in this state.
(c) A foreign corporation or limited liability company authorized to transact business in this state with a business office in this state.
(2) (a) An authorized insurer may change its registered agent by delivering to the commissioner for filing a statement of registered agent change that is signed by an officer of the insurer and that includes all of the following information:
1. The name and home office address of the authorized insurer.
2. The name of the registered agent, as changed.
3. The complete address of the registered agent, as changed.
4. Any other information that the commissioner may require.
(b) An authorized insurer may change its registered agent no more than one time per year. Any change of registered agent is effective on January 1 of the year following the delivery of the statement under par. (a).
(3) A registered agent of an authorized insurer may change its registered agent address by doing all of the following:
(a) Notifying in writing the authorized insurer for which the registered agent is acting.
(b) Delivering to the commissioner for filing a statement that includes all of the following:
1. The name and home office address of the authorized insurer for which the registered agent is acting.
2. The complete new registered agent address.
3. An attached copy of the notice under par. (a).
(4) (a) A registered agent of an authorized insurer may resign by signing and delivering to the commissioner for filing a statement of resignation that includes all of the following information:
1. The name and home office address of the authorized insurer for which the registered agent is acting.
2. The name of the registered agent.
3. A statement that the registered agent resigns.
(b) After filing the statement, the commissioner shall mail a copy to the authorized insurer under par. (a) 1.
(c) The resignation is effective on the earlier of the following:
1. Sixty days after the commissioner receives the statement of resignation for filing.
2. The date on which the appointment of a successor registered agent is effective.
(4m) Service on an insurer under this section shall be made by personally serving the process, notice or demand on the registered agent of the insurer. In lieu of delivery to the registered agent, the process, notice or demand may be left at the office of the registered agent with the person who is apparently in charge of the office.
(5) If an authorized insurer has no registered agent for service of process in this state or if the registered agent cannot with reasonable diligence be served, substituted service may be made on the commissioner under ss. 601.72 and 601.73. If substituted service is made on the commissioner, an affidavit attesting that the authorized insurer has no registered agent or that the registered agent could not with reasonable diligence be served shall be attached to the process, notice or demand that is served.
(6) Except as provided in sub. (5), this section does not limit or affect the right to serve summons, notice, orders, pleadings, demands or other process upon an authorized insurer in any other manner provided by law.
396,3 Section 3. 601.72 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:
601.72 Service of process through state officer. (1) General. Under procedures specified in s. 601.73, the commissioner is by law constituted attorney, except in cases in which the proceeding is to be brought by the state against an insurer or intermediary other than a risk retention group or risk purchasing group, in which event the secretary of state is by law constituted attorney, to receive service of summons, notices, orders, pleadings and all other legal process relating to any court or administrative agency in this state for all of the following:
(a) Authorized insurers. All insurers authorized to do business in this state, while authorized to do business in this state, and thereafter in any proceeding arising from or related to any transaction having any connection with this state, provided the requirements under s. 601.715 (5) are satisfied.
(b) Surplus lines insurers. All insurers as to any proceeding arising out of any contract that is permitted by s. 618.41, or out of any certificate, cover note or other confirmation of such insurance.
(c) Unauthorized insurers. All insurers or other persons doing an unauthorized insurance business in this state, including but not limited to risk purchasing groups, as to any proceeding arising out of the unauthorized transaction.
(d) Risk purchasing groups and nonresident intermediaries. All risk purchasing groups or nonresident intermediaries as to any proceeding arising out of insurance activities within this state or out of insurance activities related to policies on risks within this state.
(2) Appointment of attorney. Except as provided in sub. (2m), every licensed insurer by applying for and receiving a certificate of authority, every surplus lines insurer by entering into a contract subject to the surplus lines law, and every unauthorized insurer by doing an insurance business in this state, is deemed to have irrevocably appointed the commissioner and secretary of state as the insurer's attorneys in accordance with sub. (1).
(2m) Risk retention groups and risk purchasing groups. A risk retention group or risk purchasing group may not do an insurance business or engage in any insurance activity in this state until it registers with the commissioner and designates the commissioner as its agent for the purposes described in sub. (1). The commissioner may prescribe the form of registration under this subsection. If a risk retention group or risk purchasing group fails to designate the commissioner as required by this subsection, the commissioner is appointed agent for the risk retention group or risk purchasing group as provided in sub. (2).
(3) Others affected. The commissioner and secretary of state shall also be attorneys for the executors, administrators or personal representatives, receivers, trustees or other successors in interest of the persons specified in sub. (1).
(4) Fees. Litigants serving process on the commissioner under this section shall pay the fees specified in s. 601.31 (1) (p).
(5) Ordinary means of service. The right to substituted service under this section does not limit the right to serve summons, notice, orders, pleadings, demands or other process upon any person in any manner provided by law.
396,4 Section 4. 601.72 (1) (intro.) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
601.72 (1) General. (intro.) Under procedures specified in s. 601.73, the commissioner is by law constituted attorney, except in cases in which the proceeding is to be brought by the state against an insurer or intermediary other than a risk retention group or risk purchasing group, in which event the secretary of state department of financial institutions is by law constituted attorney, to receive service of summons, notices, orders, pleadings and all other legal process relating to any court or administrative agency in this state for all of the following:
396,5 Section 5. 601.72 (2) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
601.72 (2) Appointment of attorney. Except as provided in sub. (2m), every licensed insurer by applying for and receiving a certificate of authority, every surplus lines insurer by entering into a contract subject to the surplus lines law, and every unauthorized insurer by doing an insurance business in this state, is deemed to have irrevocably appointed the commissioner and secretary of state department of financial institutions as the insurer's attorneys in accordance with sub. (1).
396,6 Section 6. 601.72 (3) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
601.72 (3) Others affected. The commissioner and secretary of state department of financial institutions shall also be attorneys for the executors, administrators or personal representatives, receivers, trustees or other successors in interest of the persons specified in sub. (1).
396,7 Section 7. 601.73 (1) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, section 7011, is amended to read:
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