396,14 Section 14 . 623.06 (5) (b) of the statutes is created to read:
623.06 (5) (b) In no event may a company's aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by a qualified actuary in an opinion under sub. (1m) (b) 1. to be necessary to make adequate provision for the company's obligations under the policies and contracts.
396,15 Section 15 . 623.06 (6) of the statutes is amended to read:
623.06 (6) Reserves for all policies and contracts issued prior to the effective date of this section subsection may be calculated, at the option of the company, according to any standards which that produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by the laws in effect immediately prior to such date. Reserves for any category of policies, contracts or benefits as established by the commissioner, issued on or after the effective date of this section subsection, may be calculated, at the option of the company, according to any standards which that produce greater aggregate reserves for such category than those calculated according to the minimum standard herein provided, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided for therein. Any such company which that at any time has adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the commissioner, adopt any lower standard of valuation, but not lower than the minimum herein provided. For the purposes of this subsection, holding any additional reserves that a qualified actuary, in an opinion under sub. (1m) (b) 1., determined to be necessary to make adequate provision for the company's obligations under the policies and contracts shall not be considered the adoption of a higher standard of valuation.
396,15m Section 15m. 628.345 of the statutes is created to read:
628.345 Prohibited practices during license revocation or surrender. (1) In this section:
(a) “Disciplinary period" means the period of time beginning on the effective date of the termination of the license of an intermediary under par. (b) 1. and ending on the date on which a new license is issued to the intermediary. The “disciplinary period" of a person under par. (b) 2., 3. or 4. is the disciplinary period of the intermediary under par. (b) 1. through which the person attains the status of “disciplined person".
(b) “Disciplined person" means any of the following:
1. An intermediary whose license is revoked under s. 628.10 (2) (b) or surrendered under a stipulation.
2. An affiliate of an intermediary under subd. 1.
3. A person in which an intermediary under subd. 1. has, directly or indirectly, more than a 10% ownership interest.
4. An agent or employe of a person described in subd. 1., 2. or 3.
(2) During the disciplinary period of a disciplined person, the disciplined person may not be employed by, act as agent for, or be affiliated with, a person engaged in the business of an insurance intermediary.
(3) No person may do any of the following with respect to activities performed in this state:
(a) Pay consideration to, or expenses of, a disciplined person that directly or indirectly relate to services performed as an intermediary by the disciplined person during the disciplinary period of the disciplined person.
(b) Pay consideration to, or expenses of, a disciplined person that directly or indirectly relate to services performed as an intermediary by the person making the payment, or by an agent, employe or affiliate of that person, during the disciplinary period of the disciplined person.
(c) Pay consideration to, or expenses of, a disciplined person for information directly or indirectly provided by the disciplined person during the disciplinary period of the disciplined person for the purpose of assisting in the sale of insurance.
(d) Seek to obtain information from, or use information directly or indirectly provided by, a disciplined person during the disciplinary period of the disciplined person for the purpose of assisting in the sale of insurance.
(e) During the disciplinary period of a disciplined person, permit the disciplined person to be present during solicitation of the sale of insurance, or knowingly solicit the sale of insurance with the assistance of the disciplined person, regardless of whether the disciplined person acts as an intermediary.
(f) During the disciplinary period of a disciplined person, use or refer to an endorsement or referral by the disciplined person for the purpose of soliciting the sale of insurance.
(4) (a) Except as provided in par. (b), this section applies to all of the following:
1. A disciplined person for whom the disciplinary period is in effect on or after the effective date of this subdivision .... [revisor inserts date].
2. That portion of a disciplinary period in effect on or after the effective date of this subdivision .... [revisor inserts date], that occurs on and after the effective date of this subdivision .... [revisor inserts date].
(b) This section does not apply to an obligation incurred before the effective date of this paragraph .... [revisor inserts date], for the payment of consideration to, or expenses of, a disciplined person related to services performed or information provided during the disciplinary period of the disciplined person but before the effective date of this paragraph .... [revisor inserts date].
396,16 Section 16 . 645.08 (2) of the statutes is amended to read:
645.08 (2) Immunity. No civil cause of action may arise against and no civil liability may be imposed upon the state, commissioner, special deputy commissioner, rehabilitator or liquidator, or their employes or agents, or the insurance security fund under ch. 646 or its agents, employes, directors or contributor insurers, for an act or omission by any of them in the performance of their powers and duties under this chapter or in the performance of their powers and duties relating to regulation of the capital or solvency of an insurer under chs. 600 to 646, including the compulsory or security surplus requirements under ch. 623. This subsection does not apply to a civil cause of action arising from an act or omission that is criminal under ch. 943, if the. Such a cause of action is not, however, may be barred or limited by common law, sovereign immunity, governmental immunity or otherwise by law.
396,17 Section 17 . 646.01 (1) (a) 2. i. of the statutes is created to read:
646.01 (1) (a) 2. i. Nondomestic insurers that have not obtained a certificate of authority to do business in this state and that are doing business under s. 618.41 or 618.42.
396,18 Section 18 . 646.31 (2) (a) of the statutes is renumbered 646.31 (2) (a) 1. and amended to read:
646.31 (2) (a) 1. The claim of a policyholder, including a ceding assessable domestic insurer which is organized under ch. 612 and a domestic insurer which is a bona fide policyholder of the insurer in liquidation, or who at the time of the insured event or of the liquidation order was a resident of this state.
2. Except for a claim of a beneficiary, assignee or payee under a life or disability insurance policy or annuity contract, the claim of an insured, including a certificate holder, under a policy or annuity who at the time of the insured event or of the liquidation order was a resident of this state; or.
396,19 Section 19 . 646.31 (2) (f) of the statutes is created to read:
646.31 (2) (f) Beneficiaries, assignees and payees. Except for a claim of a nonresident certificate holder under a group policy or contract, a claim made under a life or disability insurance policy or annuity contract by a resident or nonresident beneficiary, assignee or payee of a person who fulfills all of the following criteria:
1. The person is a policyholder of, or a certificate holder under, the life or disability insurance policy or annuity contract.
2. The person is a resident of this state or could have made a claim under par. (b) 2.
396,20 Section 20 . 646.51 (6) of the statutes is amended to read:
646.51 (6) Appeal and review. Within 10 30 days after receipt of the board sends the statement under sub. (5), an insurer, after paying the assessment under protest, may appeal the assessment to the board or a committee thereof. The decision of the board on the appeal is subject to judicial review.
396,21 Section 21 . Effective dates. This act takes effect on the day after publication, except as follows:
(1) The amendment of sections 601.72 (1) (intro.), (2) and (3) and 601.73 (2) (c) of the statutes and the repeal and recreation of section 601.73 (1) (intro.) of the statutes takes effect on July 1, 1996.
(2)The treatment of section 628.345 of the statutes takes effect on the first day of the 7th month beginning after publication.
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