1995 Chapter 646

CHAPTER 646

INSURANCE SECURITY FUND

SUBCHAPTER I

GENERAL ORGANIZATION

646.01 Scope and purposes.

646.03 Definitions.

646.11 Organization and administration of fund.

646.12 Administration of the fund.

646.13 Special duties and powers of the board related to loss claims.

646.15 Proceedings involving nondomestic insurers.

646.21 Custody and investment of assets.

SUBCHAPTER II

CLAIMS PROCEDURES

646.31 Eligible claims.

646.32 Appeal and review.

646.325 Recovery of amounts paid to 3rd parties.

646.33 Subrogation and cooperation.

646.35 Continuation of coverage.

646.41 Tax exemption.

646.51 Assessments.

646.60 Claims by security funds.

646.61 Disposal and transfer of assets.

646.73 Liquidations to which the chapter is applicable.

Ch. 646 Cross-reference Cross-reference: See definitions in ss. 600.03 and 628.02.

Ch. 646 Note NOTE: Chapter 109, laws of 1979, which repealed and recreated this chapter, contained notes explaining the revision.

subch. I of ch. 646 SUBCHAPTER I

GENERAL ORGANIZATION

646.01 646.01  Scope and purposes.

646.01(1) (1)  Scope.

646.01(1)(a) (a) General. This chapter applies to:

646.01(1)(a)1. 1. All kinds and lines of direct insurance, except as provided in par. (b).

646.01(1)(a)2. 2. All insurers authorized to do business in this state except:

646.01(1)(a)2.a. a. Fraternals that are not health maintenance organization insurers.

646.01(1)(a)2.b. b. Assessable mutuals, including town mutuals.

646.01(1)(a)2.c. c. Mutual municipal insurers under s. 611.11 (4).

646.01(1)(a)2.d. d. Issuers of gift annuities under ch. 615.

646.01(1)(a)2.e. e. Limited service health organization insurers.

646.01(1)(a)2.f. f. Miscellaneous insurers and motor clubs under ch. 616.

646.01(1)(a)2.g. g. State insurance funds under chs. 604 to 607.

646.01(1)(a)2.h. h. Risk retention groups.

646.01(1)(a)2.i. i. Service insurance corporations that offer only dental or vision care.

646.01(1)(a)2.j. j. 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.

646.01 Note NOTE: Subd. par. j. is shown as renumbered from subd. par. i., as created by 1995 Wis. Act 396, by the revisor under s. 13.93 (1) (b).

646.01(1)(b) (b) Exceptions. This chapter does not apply to any of the following:

646.01(1)(b)1. 1. The nonguaranteed provisions of annuities and life insurance contracts.

646.01(1)(b)2. 2. Title insurance.

646.01(1)(b)3. 3. Surety bonds, fidelity bonds and any other bonding obligations.

646.01(1)(b)4. 4. Bail bonds.

646.01(1)(b)5. 5. Mortgage guaranty, financial guaranty and other forms of insurance offering protection against investment risks.

646.01(1)(b)6. 6. Ocean marine insurance.

646.01(1)(b)7. 7. Credit insurance.

646.01(1)(b)8. 8. Product liability or completed operations liability insurance, and comprehensive general liability including either of these coverages, provided to a risk purchasing group or a member of a risk purchasing group.

646.01(1)(b)9. 9. Any self-funded or partially or wholly uninsured plan of an employer or other person to provide life insurance, annuity or disability benefits to its employes or members to the extent that the plan is self-funded or uninsured, including benefits payable by an employer or other person under any of the following:

646.01(1)(b)9.a. a. A multiple employer welfare arrangement as defined in 29 USC 1002.

646.01(1)(b)9.b. b. A minimum premium group insurance plan.

646.01(1)(b)9.c. c. A stop-loss group insurance plan.

646.01(1)(b)9.d. d. A contract for administrative services only.

646.01(1)(b)10. 10. Any liability for dividends or experience rating credits payable after the date of entry of the order of liquidation under an insurance or annuity contract, and any fees or allowances due any person, including the policyholder, in connection with service to or administration of the contract.

646.01(1)(b)11. 11. Insurance of warranties or service contracts.

646.01(1)(b)12. 12. Municipal bond insurance.

646.01(1)(b)13. 13. Any transaction or combination of transactions between a person, including affiliates of such person, and an insurer, including affiliates of such insurer, which involves the transfer of investment or credit risk unaccompanied by transfer of insurance risk.

646.01(1)(b)14. 14. A policy issued by an insurer to the department of health and family services under s. 49.45 (2) (b) 2. to provide prepaid health care to medical assistance recipients.

646.01(2) (2) Purposes. The purposes of this chapter are:

646.01(2)(a) (a) To maintain public confidence in the promises of insurers by providing a mechanism for protecting insureds from excessive delay and loss in the event of liquidation of insurers and by assessing the cost of such protection among insurers; and

646.01(2)(b) (b) To provide where appropriate for the continuation of protection under policies and supplemental contracts of life insurance, disability insurance and annuities.

646.01 History History: 1971 c. 260; 1975 c. 373, 374, 422; 1979 c. 102, 109, 355; 1981 c. 20 s. 2202 (26) (c); 1983 a. 120; 1985 a. 216; 1987 a. 247, 325; 1989 a. 23; 1995 a. 27 s. 9130 (4); 1995 a. 236, 396; s. 13.93 (1) (b).

646.01 Annotation Purpose of chapter is to protect insureds against losses caused by insolvent insurer; insureds of insolvent insurers are protected against subrogation claims to extent of policy limits. Fireman's Fund v. Pitco Frialator, 145 W (2d) 526, 427 NW (2d) 417 (Ct. App. 1988).

646.03 646.03  Definitions. In this chapter, unless the context indicates otherwise:

646.03(1) (1) "Board" means the board of directors of the insurance security fund created by s. 646.12.

646.03(2) (2) "Fund" means the insurance security fund created by s. 646.11.

646.03(2m) (2m) "Health maintenance organization" has the meaning given under s. 609.01 (2).