1995 WISCONSIN ACT 462
(Vetoed in Part)
An Act to amend 15.01 (2); and to create 14.83, 20.145 (1) (c), 601.415 (11), 601.59 and 601.595 of the statutes; relating to: ratifying the interstate insurance receivership compact, creating the interstate insurance receivership commission, granting rule-making authority and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
14.83 of the statutes is created to read:
14.83 Interstate insurance receivership commission. There is created an interstate insurance receivership commission as specified in s. 601.59 (3). The member of the commission representing this state shall be the commissioner of insurance or his or her designated representative. The commission member shall serve without compensation but shall be reimbursed from the appropriation under s. 20.145 (1) (g) for actual and necessary expenses incurred in the performance of his or her duties. The commission has the powers and duties granted and imposed under s. 601.59.
15.01 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
15.01 (2) “Commission" means a 3-member governing body in charge of a department or independent agency or of a division or other subunit within a department, except for the education commission which shall consist of 11 members, the Wisconsin waterways commission which shall consist of 5 members, the parole commission which shall consist of 5 members and the Fox river management commission which shall consist of 7 members. A Wisconsin group created for participation in a continuing interstate body, or the interstate body itself, shall be known as a “commission", but is not a commission for purposes of s. 15.06. The parole commission created under s. 15.145 (1) shall be known as a “commission", but is not a commission for purposes of s. 15.06.
20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated:
- See PDF for table
20.145 (1) (c) of the statutes is created to read:
20.145 (1) (c) Interstate insurance receivership commission assessment. The amounts in the schedule to pay all or $25,000 of this state's portion of the annual assessment levied by the interstate insurance receivership commission under s. 601.59 (10) (c), whichever is less.
601.415 (11) of the statutes is created to read:
601.415 (11) Interstate insurance receivership commission. The commissioner or a designated representative shall serve as a member of the interstate insurance receivership commission under ss. 14.83 and 601.59 (3).
601.59 of the statutes is created to read:
601.59 Interstate insurance receivership compact. The interstate insurance receivership compact is hereby enacted into law and entered into by this state with all other jurisdictions legally joining therein, in the form substantially as follows:
(1) Article I — Purposes. Through means of joint and cooperative action among the compacting states, the purposes of this compact include all of the following:
(a) To promote, develop and facilitate orderly, efficient, cost-effective and uniform insurer receivership laws and operations.
(b) To coordinate interaction between insurer receivership and guaranty association operations.
(c) To create the interstate insurance receivership commission.
(d) To perform these and such other related functions as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson act.
(2) Article II — Definitions. In this compact:
(a) “Bylaws" means those bylaws prescribed by the commission for its governance, or for directing or controlling the commission's actions or conduct.
(b) “Compacting state" means any state which has enacted enabling legislation for this compact.
(c) “Commission" means the interstate insurance receivership commission created by this compact.
(d) “Commissioner" means the chief insurance regulatory official of a state.
(e) “Deputy receiver" means any person appointed or retained by a receiver and who is the receiver's duly authorized representative for administering one or more estates.
(f) “Domiciliary state" means the state in which an insurer is incorporated or organized; or, in the case of an alien insurer, its state of entry; or, in the case of an unauthorized insurer not incorporated, organized, or entered in any state, a state where the insurer is engaged in or doing business.
(g) “Estate" means the assets and liabilities of any insurer in receivership.
(h) “Guaranty association" means an insurance guaranty fund or association or any similar entity now or hereafter created by statute in a compacting state, other than a receivership, to pay or assume, in whole or in part, the contractual claim obligations of insolvent insurers.
(i) “Insurer" means any person or entity that has done, purports to do, is doing or is licensed to do any insurance or reinsurance business, or that is or has been subject to the authority of, or to liquidation, rehabilitation, supervision, conservation or ancillary receivership by, any commissioner.
(j) “Member" means the commissioner of a compacting state or his or her designee, who shall be a person officially connected with the commissioner and who is wholly or principally employed by the commissioner.
(k) “Noncompacting state" means any state which has not enacted enabling legislation for this compact.
(L) “Operating procedures" means those procedures promulgated by the commission implementing a rule, an existing law in a compacting state or a provision of this compact.
(m) “Publication" means the act of publishing in the official state publication in a compacting state or in such other publication as may be established by the commission.
(n) “Receiver" means receiver, liquidator, rehabilitator, conservator or ancillary receiver as the context requires.
(o) “Receivership" means any liquidation, rehabilitation, conservation or ancillary receivership proceeding as the context requires.
(p) “Rules" means acts of the commission, duly promulgated pursuant to sub. (7)
, substantially affecting interested parties in addition to the commission, which shall have the force and effect of law in the compacting states.
(q) “State" means any state, district or territory of the United States of America.
(3) Article III — Establishment of the Commission and Venue. The compacting states hereby create the interstate insurance receivership commission. The commission is a body corporate of each compacting state. The commission is a not-for-profit entity, separate and distinct from the compacting states. The commission is solely responsible for its liabilities
except as otherwise provided in this compact. Except as otherwise specifically provided in state or federal law in the jurisdiction where the commission's principal office is located or where the commission is acting as receiver, venue is proper, and judicial proceedings by or against the commission shall be brought, in a court of competent jurisdiction where the commission's principal office is located.
(4) Article IV — Powers of the Commission. The commission shall have all of the following powers:
(a) To promulgate rules which shall have the force and effect of statutory law and shall be binding in the
compacting states to the extent and in the manner provided in this compact.
(b) To promulgate operating procedures which shall be binding in the compacting states to the extent and in the manner provided in this compact.
(c) To oversee, supervise and coordinate the activities of receivers in compacting states.
(d) To act as receiver of insurers organized under the laws of, engaged in or doing the business of insurance in, a compacting state upon the request of the commissioner of such state or when grounds for receivership by the commission exist under sub. (9).
(e) To act as deputy receiver of insurers organized under the laws of, engaged in or dong the business of insurance in, a noncompacting state in accordance with sub. (9).
(f) To act as ancillary receiver in a compacting state of an insurer domiciled in a noncompacting state.
(g) To monitor the activities and functions of guaranty associations in the compacting states.
(h) To delegate its operating authority or functions; provided, that its rule-making authority under sub. (7) shall not be delegated.
(i) To bring or prosecute legal proceedings or actions in its name as the commission, or in the name of the commission acting as receiver.
(j) To bring or prosecute legal proceedings or actions as receiver on behalf of an estate or its policyholders and creditors; provided, that any guaranty association's standing to sue or be sued under applicable law shall not be affected.
(jm) To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence.
(k) To establish and maintain offices.
(L) To purchase and maintain insurance and bonds.
(m) To borrow, accept or contract for services of personnel, including, but not limited to, members and their staff.
(n) To elect or appoint such officers, attorneys, employes or agents, and to fix their compensation, define their duties and determine their qualifications; and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel.
(o) To accept any and all donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of the same.
(p) To lease, purchase, accept gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed.