CHAPTER 612
TOWN MUTUALS
612.01 Purposes, scope, interpretation and definitions.
612.02 Organization of town mutuals.
612.03 General powers and effect of unauthorized corporate acts.
612.04 Amendments of articles, bylaws and business plan.
612.11 Meetings of members.
612.12 Voting rights of members.
612.13 Directors and officers.
612.15 Supervision of management changes.
612.16 Exclusive agency and management contracts.
612.18 Transactions with affiliates and in which directors and others are interested.
612.21 Merger of town mutuals.
612.22 Merger of town mutuals into mutual insurance corporations.
612.23 Conversion of town mutuals into mutual insurance corporations.
612.24 Transfer of business.
612.25 Voluntary dissolution of town mutuals.
612.31 Authorized business.
612.35 Borrowing and repayment.
612.52 Undertaking to pay premiums and assessments.
612.61 Licensing of agents.
612.70 Waiver of notice and informal action.
612.71 Organization of reinsurance corporations.
612.81 Register of deeds.
Ch. 612 Cross-reference
Cross-reference: See definitions in ss.
600.03,
610.01 and
628.02.
Ch. 612 Note
NOTE: Chap. 22, laws of 1973, which created this chapter of the statutes, contains notes explaining the revision.
612.01
612.01
Purposes, scope, interpretation and definitions. 612.01(1)(1)
Purposes. The purposes of this chapter are:
612.01(1)(a)
(a) To preserve and encourage cooperative low-cost insurance;
612.01(1)(b)
(b) To establish a framework in which mutuality in its true sense can be preserved, and small mutual corporations can be kept viable;
612.01(1)(c)
(c) To preserve and strengthen the interest of the members in and their control of town mutuals;
612.01(1)(d)
(d) To enable town mutuals to satisfy as many of the essential insurance needs of their members as is consistent with the other objectives of
chs. 600 to
646; and
612.01(1)(e)
(e) To provide financial guaranties sufficient to ensure the solidity of town mutuals, and to encourage them to maintain adequate surpluses.
612.01(2)
(2) Scope. Except as otherwise provided, this chapter applies to all corporations organized under this chapter.
612.01(3)
(3) Interpretation. Whenever a section of
ch. 611 is applied to town mutuals by this chapter, the portion to be applied is that portion applicable to a mutual under
ch. 611.
612.02
612.02
Organization of town mutuals. 612.02(1)
(1)
Incorporating members. A town mutual may be organized by 100 or more adult natural persons each of whom owns an interest in a separate insurable risk in the territory described in
sub. (2) (c), and each of whom agrees to insure those risks in the town mutual, at least against damage by fire.
612.02(2)
(2) Articles of incorporation. The articles shall state:
612.02(2)(a)
(a) The name of the corporation which shall contain the words "Town Mutual";
612.02(2)(b)
(b) The address of the principal office, which may be designated as the residence or business office of the holder of a specified corporate office;
612.02(2)(c)
(c) The territory within which the corporation plans to operate which may not exceed 8 contiguous counties, except that the commissioner may authorize a broader territory aggregating no more than 16 contiguous counties;
612.02(2)(e)
(e) The number of directors and the manner of their selection and of their replacement if there are interim vacancies;
612.02(2)(f)
(f) The titles of the officers, their terms of office and the manner in which they are to be selected;
612.02(2)(g)
(g) The procedures and quorum requirements for the annual and special meetings and the voting rights of the members;
612.02(2)(h)
(h) The general conditions and procedures for levying assessments; and
612.02(2)(i)
(i) The procedures for amending the articles and for adopting and amending bylaws.
