SB320,47,1815 (b) "Call" means, with respect to assessments, to require payment, by the
16mailing of a notice to insurers by the fund, of an authorized assessment within the
17time set forth in the notice. An assessment is called when notice is mailed to insurers
18by the fund.
SB320, s. 143 19Section 143. 646.51 (2) of the statutes is repealed.
SB320, s. 144 20Section 144. 646.51 (3) (a) (title) of the statutes is renumbered 646.51 (3) (am)
21(title).
SB320, s. 145 22Section 145. 646.51 (3) (a) 1. of the statutes is renumbered 646.51 (1c) (c) and
23amended to read:
SB320,48,1024 646.51 (1c) (c) In this section, "premiums" "Premiums" means gross premiums
25and other considerations received for direct insurance and annuities, including

1considerations for a plan established under ss. 185.981 to 185.985, less return
2premiums and other considerations, dividends, and experience credits paid or
3credited to policyholders on the direct such business. The term "premiums" does not
4include any amounts received for any contracts or for the portions of any contracts
5for which coverage is excluded under s. 646.01 (1) (b)
premiums or other
6considerations received for policies or contracts, or for portions of policies or
7contracts, for which coverage is not provided under this chapter, except that the
8amount of assessable premiums or other considerations shall not be reduced on
9account of limitations with respect to a single risk, loss, or life under s. 646.31 (4) or
10on account of interest limitations under s. 646.35 (6) (c)
.
SB320, s. 146 11Section 146. 646.51 (3) (a) 2. of the statutes is renumbered 646.51 (3) (am)
12(intro.) and amended to read:
SB320,48,1413 646.51 (3) (am) (intro.) Except as provided in pars. (b) and par. (c), assessments
14shall be calculated as follows:
SB320,48,18 151. For assessments authorized by the board before the effective date of this
16subdivision .... [revisor inserts date], as
a percentage of premiums premium written
17in this state by each insurer in the classes protected by the account, accounts for the
18year preceding the year of entry of the order of liquidation.
SB320, s. 147 19Section 147. 646.51 (3) (am) 2. of the statutes is created to read:
SB320,48,2320 646.51 (3) (am) 2. For assessments authorized by the board on or after the
21effective date of this subdivision .... [revisor inserts date], as a percentage of premium
22written in this state by each insurer in the classes protected by the accounts for the
23year preceding the year in which the assessment is authorized by the board.
SB320, s. 148 24Section 148. 646.51 (3) (b) of the statutes is repealed.
SB320, s. 149 25Section 149. 646.51 (3) (c) of the statutes is amended to read:
SB320,49,5
1646.51 (3) (c) Administrative assessments. The board may make authorize
2assessments on a prorated or nonprorated basis to meet administrative costs and
3other expenses whether or not related to the liquidation or rehabilitation of a
4particular insurer. Nonprorated assessments may not exceed $200 per insurer in
5any year.
SB320, s. 150 6Section 150. 646.51 (4) of the statutes is renumbered 646.51 (4) (c) and
7amended to read:
SB320,49,198 646.51 (4) (c) The maximum assessment under this section in any calendar
9year is 2% of the assessable premiums under sub. (3). If the maximum assessment
10does not enable the fund to meet its obligations, an additional assessment shall be
11made in each succeeding year until the amounts available enable the fund to meet
12its obligations. No
Assessments to meet the obligations of the fund with respect to
13an insurer in liquidation may not be authorized or called unless the board makes a
14finding that it is necessary for implementing the purposes of this chapter.
15Recognizing that exact determinations may not always be possible, the board shall
16endeavor to classify and calculate assessments with a reasonable degree of accuracy.
17No authorized
assessment may be levied called if the assets held in the appropriate
18account of the fund are sufficient to cover all estimated payments for liquidations in
19progress.
SB320, s. 151 20Section 151. 646.51 (4) (a), (b) and (d) of the statutes are created to read:
SB320,50,221 646.51 (4) (a) Subject to pars. (b) and (d), the total of all assessments for an
22amount authorized by the board under this section with respect to an insurer may
23not, in one calendar year, exceed 2% of the insurer's average annual premiums
24received in this state, during the 3 calendar years preceding the year of entry of the

1order of liquidation, on the types of policies and contracts that are covered by the
2account.
SB320,50,73 (b) If the maximum assessment under par. (a), together with the other assets
4of the fund in an account, does not provide in one year in the account an amount that
5is sufficient for the fund to meet its obligations, the board shall assess additional
6amounts in each succeeding year until the amounts available enable the fund to meet
7its obligations.
SB320,50,118 (d) If 2 or more assessments are authorized in one calendar year with respect
9to insurers placed in liquidation in different calendar years, the average annual
10premiums for purposes of the limitation in par. (a) shall be equal and limited to the
11higher of the 3-year annual premium average for the applicable account.
SB320, s. 152 12Section 152. 646.51 (5) of the statutes is amended to read:
SB320,50,1713 646.51 (5) Collection. After the rate of assessment has been fixed, the board
14fund shall send to each insurer a statement of the amount it is to pay. The board fund
15shall designate whether the assessments shall be made payable in one sum or in
16installments. Assessments shall be collected by the same procedures as premium
17taxes or license fees under ch. 76.
SB320, s. 153 18Section 153. 646.51 (6) of the statutes is amended to read:
SB320,50,2219 646.51 (6) Appeal and review. Within 30 days after the board fund sends the
20statement under sub. (5), an insurer, after paying the assessment under protest, may
21appeal the assessment to the board or a committee thereof. The decision of the board
22on the appeal is subject to judicial review.
SB320, s. 154 23Section 154. 646.51 (7) (a) of the statutes is amended to read:
SB320,51,3
1646.51 (7) (a) An insurer's premium rates are not excessive because they
2contain an amount reasonably calculated to recoup assessments made called under
3this chapter.
SB320, s. 155 4Section 155. 646.51 (8) of the statutes is amended to read:
SB320,51,115 646.51 (8) Abatement and deferral. The board may abate or defer the
6assessment of an insurer in whole or part if payment of the assessment would
7endanger the ability of the insurer to fulfill its contractual obligations. The amount
8by which an assessment is abated or deferred may be assessed under this section
9against other insurers. When the conditions that prompted the board to defer
10assessment of an insurer no longer exist, the insurer shall pay all assessments that
11were deferred in accordance with a repayment plan approved by the board.
SB320, s. 156 12Section 156. 646.51 (9) (b) 1. of the statutes is amended to read:
SB320,51,1413 646.51 (9) (b) 1. Assessments made authorized or called before the insurer's
14license or certificate of authority terminated or expired.
SB320, s. 157 15Section 157. 646.51 (9) (b) 2. of the statutes is amended to read:
SB320,51,1916 646.51 (9) (b) 2. Assessments made authorized or called after the insurer's
17license or certificate of authority terminated or expired that relate to a liquidation
18order entered before the insurer's license or certificate of authority terminated or
19expired.
SB320, s. 158 20Section 158. 646.60 (1) (a) of the statutes is amended to read:
SB320,51,2321 646.60 (1) (a) Settlements by the fund. The liquidator is bound by
22determinations and settlements of covered loss claims, and by payments of claims,
23made by the board fund under this chapter.
SB320, s. 159 24Section 159. 646.61 (2) of the statutes is amended to read:
SB320,52,2
1646.61 (2) To meet the needs of the fund the board fund may temporarily
2transfer assets from one account to another.
SB320, s. 160 3Section 160. 646.73 of the statutes is repealed.
SB320, s. 161 4Section 161. Nonstatutory provisions.
SB320,52,95 (1) Annuity minimum nonforfeiture amount. Notwithstanding Section 162 (3 )
6of this act, an insurer may elect to comply with section 632.435 (1) (intro.), (a), and
7(b), (4), and (5) of the statutes, as affected by this act, on a contract form-by-contract
8form basis, for annuity contracts newly issued on any date after the effective date of
9this subsection.
SB320, s. 162 10Section 162 . Initial applicability.
SB320,53,311 (1) Insurance security fund. The treatment of sections 609.98 (1) and (4) (a)
12and (b), 645.58 (1) (intro.), 646.01 (1) (a) 2. k. and L. and (b) 1., 9. (intro.), a., b., c.,
13and d., 11., 11m., 15., 16., 17., and 18., 646.03 (1m), (2n), (2p), (4), and (5), 646.12 (2)
14(d) and (f) 2. and 3. and (4), 646.13 (title), (1) (intro.) and (b), (2) (intro.), (b), (c), (d),
15and (g), (3) (intro.), (a), (b), and (c) (intro.) and 2., and (4), 646.15 (title) and (1) (a)
16(intro.), 1., 2., and 4., 646.16, 646.21 (2), 646.31 (1) (d) 10. and 11., (2) (a) 1. and 2.,
17(b) 1., 2. (intro.), a., and b., and 3., (f) (title) and 2., and (g), (3), (5), (6) (a) and (b), (7),
18(8), (9) (a), (b), (c), (cm), and (d), and (11), 646.32 (1), 646.325 (1) and (2) (intro.), (a)
19(intro.), and (b), 646.33 (2), (2m) (b), and (3), 646.35 (2), (3) (title), (intro.) (except
20646.35 (3) (title)), (a), (b), and (c), (5), (6) (a), (b), (bm), and (c) (intro.), 1. (intro.) and
21b., and 2. (intro.) and b., (7), (8), (9), and (10), 646.51 (1), (1c), (2), (3) (a) (title), 1., and
222., (am) 2., (b), and (c), (5), (6), (7) (a), (8), and (9) (b) 1. and 2., 646.60 (1) (a), 646.61
23(2), and 646.73 of the statutes, the renumbering and amendment of sections 646.11
24(1), 646.31 (10) and (13), 646.33 (1), 646.35 (4), and 646.51 (4) of the statutes, and the
25creation of sections 646.11 (1) (d) and (e), 646.31 (10) (b) and (13) (b), (c), and (d),

1646.33 (1) (b), (c), and (d), 646.35 (4) (b), and 646.51 (4) (a), (b), and (d) of the statutes
2first apply to liquidation proceedings in which a liquidation order is issued on the
3effective date of this subsection.
SB320,53,64 (2) Suitability of annuity recommendations. The treatment of section 628.347
5of the statutes first applies to recommendations for the purchase or exchange of
6annuities that are made on the effective date of this subsection.
SB320,53,97 (3) Annuity minimum nonforfeiture amount. The treatment of section 632.435
8(1) (intro.), (a), and (b), (4), (5), and (12) of the statutes first applies to annuity
9contracts issued on the 2nd anniversary of the day after publication.
SB320, s. 163 10Section 163. Effective dates. This act takes effect on the day after
11publication, except as follows:
SB320,53,1412 (1) Suitability of annuity recommendations. The treatment of section 628.347
13of the statutes and Section 162 (2) of this act take effect on the first day of the 7th
14month beginning after publication.
SB320,53,1515 (End)
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