SB316,19,126
(e) The present value at the contract issue date, and at each redetermination
7date, of the additional reduction under par. (c) 1. for substantive participation in an
8equity index benefit may not exceed the market value of the benefit. The
9commissioner may require a demonstration that the present value of the additional
10reduction does not exceed the market value of the benefit. The commissioner may
11disallow or limit the additional reduction if the commissioner determines that the
12demonstration is unacceptable.
SB316,19,1713
(f) The commissioner may promulgate rules for the implementation of par. (e)
14and to provide for further adjustments to the calculation of minimum nonforfeiture
15amounts for contracts that provide substantive participation in an equity index
16benefit and for other contracts for which the commissioner determines adjustments
17are justified.
SB316, s. 30
18Section
30. 632.435 (5) of the statutes is amended to read:
SB316,19,2419
632.435
(5) Any paid-up annuity benefit available under a contract shall be
20such that its present value on the date annuity payments are to commence is at least
21equal to the minimum nonforfeiture amount on that date. Such present value shall
22be computed using the mortality table, if any, and the interest rate
or rates specified
23in the contract for determining the minimum paid-up annuity benefits guaranteed
24in the contract.
SB316, s. 31
25Section
31. 632.435 (12) of the statutes is amended to read:
SB316,20,11
1632.435
(12) After
November 8, 1977 the effective date of this subsection ....
2[revisor inserts date], any company may
file with the commissioner a written notice
3of its election elect to comply with this section
after a specified date on a contract
4form-by-contract form basis, for contracts newly issued, before the 2nd anniversary
5of
November 8, 1977. After the filing of such notice, then upon such specified date,
6which shall be the operative date of this section for such company
the effective date
7of this subsection .... [revisor inserts date]. In all other instances, this section shall
8become operative with respect to annuity contracts
thereafter issued
by such
9company. If a company makes no such election, the operative date of this section for
10such company shall be on or after the 2nd anniversary of
November 8, 1977 the
11effective date of this subsection .... [revisor inserts date].
SB316,20,2116
645.58
(1) Liability. (intro.) Except as provided in this subsection
and in s.
17646.35 (8) (e), the amount recoverable by the liquidator from a reinsurer shall not be
18reduced as a result of delinquency proceedings, regardless of any provision in the
19reinsurance contract or other agreement. Payment made directly to an insured or
20other creditor shall not diminish the reinsurer's obligation to the insurer's estate
21except when any of the following applies:
SB316, s. 34
22Section
34. 646.01 (1) (a) 2. k. of the statutes is created to read:
SB316,20,2323
646.01
(1) (a) 2. k. Risk-sharing plans under chs. 149 and 619.
SB316, s. 35
24Section
35. 646.01 (1) (a) 2. L. of the statutes is created to read:
SB316,20,2525
646.01
(1) (a) 2. L. The patients compensation fund under s. 655.27.
SB316, s. 36
1Section
36. 646.01 (1) (b) 1. of the statutes is repealed and recreated to read:
SB316,21,42
646.01
(1) (b) 1. Any portion of a life insurance policy or annuity contract that
3is not guaranteed by the insurer or under which the risk is borne by the policy or
4policyholder.
SB316, s. 37
5Section
37. 646.01 (1) (b) 9. (intro.) of the statutes is renumbered 646.01 (1)
6(b) 9. and amended to read:
SB316,21,117
646.01
(1) (b) 9. Any self-funded
, self-insured, or partially or wholly uninsured
8plan of an employer or other person to provide life insurance, annuity
, or disability
9benefits to its employees or members to the extent that the plan is self-funded
,
10self-insured, or uninsured
, including benefits payable by an employer or other
11person under any of the following:.
SB316, s. 38
12Section
38. 646.01 (1) (b) 9. a. of the statutes is repealed.
SB316, s. 39
13Section
39. 646.01 (1) (b) 9. b. of the statutes is repealed.
SB316, s. 40
14Section
40. 646.01 (1) (b) 9. c. of the statutes is repealed.
SB316, s. 41
15Section
41. 646.01 (1) (b) 9. d. of the statutes is repealed.
SB316, s. 42
16Section
42. 646.01 (1) (b) 11. of the statutes is repealed and recreated to read:
SB316,21,1717
646.01
(1) (b) 11. Any warranty or service contract.
SB316, s. 43
18Section
43. 646.01 (1) (b) 11m. of the statutes is created to read:
SB316,21,2219
646.01
(1) (b) 11m. Any contractual liability policy that is issued to a warrantor,
20warranty plan, warranty plan administrator, or service contract provider and that
21provides coverage of any liability or performance arising out of or in connection with
22a warranty or service contract.
SB316, s. 44
23Section
44. 646.01 (1) (b) 15. of the statutes is created to read:
SB316,21,2424
646.01
(1) (b) 15. An unallocated annuity contract.
SB316, s. 45
25Section
45. 646.01 (1) (b) 16. of the statutes is created to read:
SB316,22,4
1646.01
(1) (b) 16. A contractual agreement that obligates an insurer to provide
2a book value accounting guarantee for defined contribution benefit plan participants
3by reference to a portfolio of assets that is owned by the benefit plan or its trustee,
4neither of which is an affiliate of the insurer.
SB316, s. 46
5Section
46. 646.01 (1) (b) 17. of the statutes is created to read:
SB316,22,166
646.01
(1) (b) 17. Any liability under a policy or contract to the extent that it
7provides for interest or other changes in value that are to be determined by the use
8of an index or other external reference stated in the policy or contract and to the
9extent that the interest or other changes in value have not been credited to the policy
10or contract as of the date of the entry of the order of liquidation and are subject to
11forfeiture. If a policy's or contract's interest or other changes in value are credited
12less frequently than annually, for purposes of determining the values that have been
13credited and that are not subject to forfeiture, the interest or change in value
14determined by using the procedures specified in the policy or contract will be credited
15as if the contractual date of crediting interest or other changes in value was the date
16of entry of the order of liquidation and will not be subject to forfeiture.
SB316, s. 47
17Section
47. 646.01 (1) (b) 18. of the statutes is created to read:
SB316,22,2418
646.01
(1) (b) 18. The deductible, self-funded, or self-insured portion of a claim
19under a liability or worker's compensation insurance policy, regardless of the timing
20or method provided in the policy, endorsement, or any other agreement for payment
21of the deductible, self-funded, or self-insured amount by the insured. This
22subdivision does not apply to a worker's compensation insurance policy if the insured
23under the policy is a debtor under
11 USC 701, et seq., as of the deadline set by the
24liquidator for filing claims against the insolvent insurer.
SB316, s. 48
25Section
48. 646.03 (1m) of the statutes is created to read:
SB316,23,2
1646.03
(1m) "Direct insurance" does not include a policy or contract of
2reinsurance, except for the following:
SB316,23,43
(a) Reinsurance for which the reinsurer has issued assumption certificates
4under the reinsurance policy or contract.
SB316,23,55
(b) Reinsurance ceded by an assessable town mutual company.
SB316, s. 49
6Section
49. 646.03 (2n) of the statutes is created to read:
SB316,23,97
646.03
(2n) "Impaired insurer" means an insurer subject to this chapter that
8is placed under an order of rehabilitation or conservation by a court of competent
9jurisdiction.
SB316, s. 50
10Section
50. 646.03 (2p) of the statutes is created to read:
SB316,23,1311
646.03
(2p) "Insolvent insurer" means an insurer subject to this chapter that
12is placed under an order of liquidation by a court of competent jurisdiction with a
13finding of insolvency.
SB316, s. 51
14Section
51. 646.03 (4) of the statutes is created to read:
SB316,23,2115
646.03
(4) With respect to a life or disability insurance policy or an annuity
16contract, "owner" or "policyholder" means the person who is identified as the legal
17owner under the terms of the policy or contract or who is otherwise vested with legal
18title to the policy or contract through a valid assignment completed in accordance
19with the terms of the policy or contract and properly recorded as the owner on the
20books of the insurer. "Owner" or "policyholder" does not include a person with only
21a beneficial interest in a policy or contract.
SB316, s. 52
22Section
52. 646.03 (5) of the statutes is created to read:
SB316,24,223
646.03
(5) "Unallocated annuity contract" means an annuity contract or group
24annuity certificate that is not issued to and owned by an individual, except to the
1extent of any annuity benefits guaranteed to an individual by an insurer under the
2contract or certificate.
SB316, s. 53
3Section
53. 646.11 (1) of the statutes is renumbered 646.11 (1) (intro.) and
4amended to read:
SB316,24,85
646.11
(1) (intro.)
Organization. There is created
a fund an organization to be
6known as the "insurance security fund
".." All insurers subject to this chapter are
7contributors to the fund as a result of their authority to transact business in this
8state. The fund shall consist of all
of the following:
SB316,24,9
9(a) All payments made by insurers under s. 646.51
, of the.
SB316,24,10
10(b) The earnings resulting from investments under s. 646.21 (2)
and of the.
SB316,24,12
11(c) The amounts recovered under s. 645.72 (2)
or a substantially similar law in
12the state of domicile of the insolvent insurer.
SB316, s. 54
13Section
54. 646.11 (1) (d) of the statutes is created to read:
SB316,24,1514
646.11
(1) (d) Amounts reimbursed to the fund through its subrogation and
15assignment rights.
SB316, s. 55
16Section
55. 646.11 (1) (e) of the statutes is created to read:
SB316,24,1717
646.11
(1) (e) Any other moneys received by the fund from time to time.
SB316, s. 56
18Section
56. 646.12 (2) (d) of the statutes is amended to read:
SB316,25,219
646.12
(2) (d) Employ or retain the personnel necessary to carry out
its the
20fund's duties and set compensation for the personnel
, sue or be sued, make contracts
21and borrow money necessary to carry out its duties in the most efficient way,
22including money with which to pay claims under s. 646.31 or to continue coverage
23under s. 646.35. The board may offer as security for such loans its claims against the
24liquidator or its power to levy assessments under this chapter. Personnel employed
1under this paragraph are not employees of the state and are not subject to s. 20.922
2or ch. 230.
SB316, s. 57
3Section
57. 646.12 (2) (f) 2. of the statutes is amended to read:
SB316,25,74
646.12
(2) (f) 2. Keep confidential the records under subd. 1. pertaining to
5specific liquidation proceedings involving an insurer until the termination of the
6liquidation proceedings or until sooner ordered to make the records public by a court
7of competent jurisdiction.
SB316, s. 58
8Section
58. 646.12 (2) (f) 3. of the statutes is amended to read:
SB316,25,119
646.12
(2) (f) 3. Keep confidential the records under subd. 1. pertaining to
10specific rehabilitation proceedings involving an insurer unless ordered to make the
11records public by a court
of competent jurisdiction.
SB316, s. 59
12Section
59. 646.12 (4) of the statutes is amended to read:
SB316,25,1613
646.12
(4) Other powers. The
board fund may join an organization consisting
14of one or more entities of other states performing comparable functions, in order to
15assist the
board fund in carrying out its powers and duties under this chapter and
16otherwise further the purposes of this chapter.
SB316, s. 60
17Section
60. 646.13 (title) of the statutes is amended to read:
SB316,25,19
18646.13 (title)
Special duties and powers of the board fund related to loss
19claims.
SB316, s. 61
20Section
61. 646.13 (1) (intro.) of the statutes is amended to read:
SB316,25,2121
646.13
(1) Duties. (intro.) The
board fund shall:
SB316, s. 62
22Section
62. 646.13 (1) (b) of the statutes is amended to read:
SB316,26,223
646.13
(1) (b) Stand in the position of the insurer in the investigation,
24compromise, settlement, denial
, and payment of claims under s. 646.31 and the
25defense of 3rd party claims against insureds, subject to the limitations of s. 645.43.
1The
board fund shall consult and cooperate with the liquidator in carrying out these
2duties.
SB316, s. 63
3Section
63. 646.13 (2) (intro.) of the statutes is amended to read:
SB316,26,44
646.13
(2) Powers. (intro.) The
board fund may:
SB316, s. 64
5Section
64. 646.13 (2) (b) of the statutes is amended to read:
SB316,26,86
646.13
(2) (b) Exercise with respect to loss claims the powers that the liquidator
7has with respect to other claims under ch. 645
or a substantially similar law in the
8state of domicile of the insolvent insurer.
SB316, s. 65
9Section
65. 646.13 (2) (c) of the statutes is amended to read:
SB316,26,1210
646.13
(2) (c) With respect to any action against an insurer which is in
11liquidation, exercise the powers of the liquidator under s. 645.49 (1)
or a
12substantially similar law in the state of domicile of the insolvent insurer.
SB316, s. 66
13Section
66. 646.13 (2) (d) of the statutes is amended to read:
SB316,26,2314
646.13
(2) (d) Have standing to appear in any liquidation proceedings in this
15state involving an insurer in liquidation
, and have authority to appear or intervene
16before a court or agency of any other state having jurisdiction over an impaired or
17insolvent insurer, in accordance with the laws of that state, with respect to which the
18fund is or may become obligated or that has jurisdiction over any person or property
19against which the fund may have subrogation or other rights. Standing shall extend
20to all matters germane to the powers and duties of the fund, including proposals for
21reinsuring, modifying, or guaranteeing the policies or contracts of the impaired or
22insolvent insurer and the determination of the policies or contracts and contractual
23obligations.
SB316, s. 67
24Section
67. 646.13 (2) (g) of the statutes is created to read:
SB316,27,4
1646.13
(2) (g) Sue and be sued, make contracts, and borrow money necessary
2to carry out its duties, including money with which to pay claims under s. 646.31 or
3to continue coverage under s. 646.35. The fund may offer as security for such loans
4its claims against the liquidator or its power to levy assessments under this chapter.
SB316, s. 68
5Section
68. 646.13 (3) (intro.) of the statutes is amended to read:
SB316,27,76
646.13
(3) No duty or liability. (intro.) The
board fund has no duty or liability
7with respect to any claim filed as follows:
SB316, s. 69
8Section
69. 646.13 (3) (a) of the statutes is amended to read:
SB316,27,139
646.13
(3) (a) With the liquidator under s. 645.61 after the
original date for
10filing specified by the liquidator under s. 645.47 (2), unless the liquidator determines
11that the claim is considered to have been timely filed under s. 645.61 (2) and the claim
12participates fully in every distribution to the same extent as other timely filed claims
13in the same class.
SB316, s. 70
14Section
70. 646.13 (3) (b) of the statutes is amended to read:
SB316,27,1915
646.13
(3) (b) With a liquidator or court under the laws of any other state after
16the
original date for filing specified by the liquidator or court, unless the liquidator
17or court determines that the claim is considered to have been timely filed under a law
18substantially similar to s. 645.61 (2) and the claim participates fully in every
19distribution to the same extent as other timely filed claims in the same class.
SB316, s. 71
20Section
71. 646.13 (3) (c) (intro.) of the statutes is amended to read:
SB316,27,2521
646.13
(3) (c) (intro.) Except for claims under life insurance policies, annuities
22and, or noncancelable or guaranteed renewable disability insurance policies
, and
23except for claims determined to be excused late filings as provided in pars. (a) and
24(b),
if the original date for filing is extended by the liquidator or court, with a
25liquidator or court after the earlier of the following:
SB316, s. 72
1Section
72. 646.13 (3) (c) 2. of the statutes is amended to read:
SB316,28,32
646.13
(3) (c) 2. The
final extended date for filing specified by the liquidator or
3court.
SB316, s. 73
4Section
73. 646.13 (4) of the statutes is amended to read: