SB320,25,321
646.12
(2) (d) Employ or retain the personnel necessary to carry out
its the
22fund's duties and set compensation for the personnel
, sue or be sued, make contracts
23and borrow money necessary to carry out its duties in the most efficient way,
24including money with which to pay claims under s. 646.31 or to continue coverage
25under s. 646.35. The board may offer as security for such loans its claims against the
1liquidator or its power to levy assessments under this chapter. Personnel employed
2under this paragraph are not employees of the state and are not subject to s. 20.922
3or ch. 230.
SB320, s. 58
4Section
58. 646.12 (2) (f) 2. of the statutes is amended to read:
SB320,25,85
646.12
(2) (f) 2. Keep confidential the records under subd. 1. pertaining to
6specific liquidation proceedings involving an insurer until the termination of the
7liquidation proceedings or until sooner ordered to make the records public by a court
8of competent jurisdiction.
SB320, s. 59
9Section
59. 646.12 (2) (f) 3. of the statutes is amended to read:
SB320,25,1210
646.12
(2) (f) 3. Keep confidential the records under subd. 1. pertaining to
11specific rehabilitation proceedings involving an insurer unless ordered to make the
12records public by a court
of competent jurisdiction.
SB320, s. 60
13Section
60. 646.12 (4) of the statutes is amended to read:
SB320,25,1714
646.12
(4) Other powers. The
board fund may join an organization consisting
15of one or more entities of other states performing comparable functions, in order to
16assist the
board fund in carrying out its powers and duties under this chapter and
17otherwise further the purposes of this chapter.
SB320, s. 61
18Section
61. 646.13 (title) of the statutes is amended to read:
SB320,25,20
19646.13 (title)
Special duties and powers of the board fund related to loss
20claims.
SB320, s. 62
21Section
62. 646.13 (1) (intro.) of the statutes is amended to read:
SB320,25,2222
646.13
(1) Duties. (intro.) The
board fund shall:
SB320, s. 63
23Section
63. 646.13 (1) (b) of the statutes is amended to read:
SB320,26,324
646.13
(1) (b) Stand in the position of the insurer in the investigation,
25compromise, settlement, denial
, and payment of claims under s. 646.31 and the
1defense of 3rd party claims against insureds, subject to the limitations of s. 645.43.
2The
board fund shall consult and cooperate with the liquidator in carrying out these
3duties.
SB320, s. 64
4Section
64. 646.13 (2) (intro.) of the statutes is amended to read:
SB320,26,55
646.13
(2) Powers. (intro.) The
board fund may:
SB320, s. 65
6Section
65. 646.13 (2) (b) of the statutes is amended to read:
SB320,26,97
646.13
(2) (b) Exercise with respect to loss claims the powers that the liquidator
8has with respect to other claims under ch. 645
or a substantially similar law in the
9state of domicile of the insolvent insurer.
SB320, s. 66
10Section
66. 646.13 (2) (c) of the statutes is amended to read:
SB320,26,1311
646.13
(2) (c) With respect to any action against an insurer which is in
12liquidation, exercise the powers of the liquidator under s. 645.49 (1)
or a
13substantially similar law in the state of domicile of the insolvent insurer.
SB320, s. 67
14Section
67. 646.13 (2) (d) of the statutes is amended to read:
SB320,26,2415
646.13
(2) (d) Have standing to appear in any liquidation proceedings in this
16state involving an insurer in liquidation
, and have authority to appear or intervene
17before a court or agency of any other state having jurisdiction over an impaired or
18insolvent insurer, in accordance with the laws of that state, with respect to which the
19fund is or may become obligated or that has jurisdiction over any person or property
20against which the fund may have subrogation or other rights. Standing shall extend
21to all matters germane to the powers and duties of the fund, including proposals for
22reinsuring, modifying, or guaranteeing the policies or contracts of the impaired or
23insolvent insurer and the determination of the policies or contracts and contractual
24obligations.
SB320, s. 68
25Section
68. 646.13 (2) (g) of the statutes is created to read:
SB320,27,4
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.
SB320, s. 69
5Section
69. 646.13 (3) (intro.) of the statutes is amended to read:
SB320,27,76
646.13
(3) No duty or liability. (intro.) The
board fund has no duty or liability
7with respect to any claim filed as follows:
SB320, s. 70
8Section
70. 646.13 (3) (a) of the statutes is amended to read:
SB320,27,139
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.
SB320, s. 71
14Section
71. 646.13 (3) (b) of the statutes is amended to read:
SB320,27,1915
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.
SB320, s. 72
20Section
72. 646.13 (3) (c) (intro.) of the statutes is amended to read:
SB320,27,2521
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:
SB320, s. 73
1Section
73. 646.13 (3) (c) 2. of the statutes is amended to read:
SB320,28,32
646.13
(3) (c) 2. The
final extended date for filing specified by the liquidator or
3court.
SB320, s. 74
4Section
74. 646.13 (4) of the statutes is amended to read:
SB320,28,95
646.13
(4) When duty to defend terminates. Any obligation of the
board fund 6to defend an insured ceases upon the
board's fund's payment, by settlement releasing
7the insured or on a judgment, of an amount equal to the lesser of the
board's fund's 8covered claim obligation limit or the applicable policy limit, subject to any express
9policy terms regarding tender of limits.
SB320, s. 75
10Section
75. 646.15 (title) of the statutes is amended to read:
SB320,28,11
11646.15 (title)
Proceedings involving nondomestic insurers.
SB320, s. 76
12Section
76. 646.15 (1) (a) (intro.) of the statutes is amended to read:
SB320,28,1613
646.15
(1) (a) (intro.) If
a nondomestic an insurer is in liquidation, the
board 14fund may apply to the circuit court for Dane County for, and the court may grant,
15restraining orders, temporary and permanent injunctions, and other orders
16considered necessary and proper to prevent any of the following:
SB320, s. 77
17Section
77. 646.15 (1) (a) 1. of the statutes is amended to read:
SB320,28,1918
646.15
(1) (a) 1. Interference with the
board fund or with its administrative
19proceedings.
SB320, s. 78
20Section
78. 646.15 (1) (a) 2. of the statutes is amended to read:
SB320,28,2321
646.15
(1) (a) 2. The institution or further prosecution of any action or
22proceeding involving the insurer or in which the
board
fund is obligated to defend a
23party.
SB320, s. 79
24Section
79. 646.15 (1) (a) 4. of the statutes is amended to read:
SB320,29,3
1646.15
(1) (a) 4. Any other threatened or contemplated action that might
2prejudice the rights of policyholders or the administration of the liquidation or
board 3fund proceedings.
SB320, s. 80
4Section
80. 646.16 of the statutes is created to read:
SB320,29,15
5646.16 Payment of deposits made for benefit of creditors. (1) The
6commissioner shall promptly pay to the fund any deposit held in this state that was
7paid, as required by law or the commissioner, by the insolvent insurer for the benefit
8of creditors, including policyholders, and not turned over to the domiciliary
9liquidator upon the entry of a final order of liquidation of an insurer domiciled in this
10state or in a reciprocal state, as defined in s. 645.03 (1) (i). Of the amount paid to the
11fund under this subsection, the fund may retain the percentage determined by
12dividing the aggregate amount of policyholders' claims that are related to the
13insolvency and for which the fund has provided benefits under this chapter by the
14aggregate amount of all policyholders' claims in this state that are related to the
15insolvency. The fund shall remit the balance to the domiciliary liquidator.
SB320,29,19
16(2) Any amount retained by the fund under sub. (1) shall be treated as a
17distribution of estate assets under s. 645.72 or a similar provision of the state of
18domicile of the insolvent insurer. Deposits subject to this section shall not be treated
19as deposits as security, escrow, or other security under s. 645.03 (1) (j).
SB320, s. 81
20Section
81. 646.21 (2) of the statutes is amended to read:
SB320,30,321
646.21
(2) Investment of assets. The board may request that assets of the fund
22not needed currently be invested by the investment board under s. 25.17. If so
23requested, the investment board shall invest those assets in investments with
24maturities and liquidity appropriate to the probable needs of the fund for money to
25perform its duties. All income attributable to the investments shall be credited to
1the fund, and both income and principal shall be transferred to the
board of the fund
2on request of the board. Assets held by the
board of the fund shall be invested in a
3similar manner.
SB320, s. 82
4Section
82. 646.31 (1) (d) 10. and 11. of the statutes are created to read:
SB320,30,65
646.31
(1) (d) 10. Based on an obligation that does not arise under the express
6written terms of the policy or contract, including any of the following:
SB320,30,77
a. A claim based on marketing materials.
SB320,30,88
b. A claim based on misrepresentations regarding policy benefits.
SB320,30,109
c. An extra-contractual claim, including a claim for punitive or exemplary
10damages.
SB320,30,1111
d. A claim for statutorily imposed multiple damages.
SB320,30,1212
e. A claim for penalties or consequential or incidental damages.
SB320,30,1313
f. A claim for bad faith damages.
SB320,30,1614
11. In the case of a life or disability insurance policy or an annuity contract,
15based on side letters, riders, or other documents that do not meet or comply with
16applicable policy form filing or approval requirements.
SB320, s. 83
17Section
83. 646.31 (2) (a) 1. of the statutes is amended to read:
SB320,30,2118
646.31
(2) (a) 1. The claim of a policyholder, including a ceding assessable
19domestic insurer
which that is organized under ch. 612 and a domestic insurer
which 20that is a bona fide policyholder of the insurer in liquidation, who
at the time of the
21insured event or of the liquidation order was is a resident of this state
under sub. (13).
SB320, s. 84
22Section
84. 646.31 (2) (a) 2. of the statutes is amended to read:
SB320,31,223
646.31
(2) (a) 2. Except for a claim of a beneficiary, assignee
, or payee under
24a life or disability insurance policy or annuity contract, the claim of an insured,
25including a certificate holder, under a policy or annuity
contract who
at the time of
1the insured event or of the liquidation order was is a resident of this state
under sub.
2(13).
SB320, s. 85
3Section
85. 646.31 (2) (b) 1. of the statutes is repealed.
SB320, s. 86
4Section
86. 646.31 (2) (b) 2. (intro.) and a. of the statutes are consolidated,
5renumbered 646.31 (2) (b) and amended to read:
SB320,31,126
646.31
(2) (b)
Certain nonresidents. The claim is made under a life or disability
7insurance policy or annuity contract subject to this section and issued by a domestic
8insurer
if all of the following conditions are met: a. The and the claimant is a resident
9of another state that provides coverage similar to the coverage provided under this
10chapter but does not provide coverage for the claimant
because the insurer was not
11licensed in that state at the time specified as a requirement for coverage under that
12state's guaranty association law.
SB320, s. 87
13Section
87. 646.31 (2) (b) 2. b. of the statutes is repealed.
SB320, s. 88
14Section
88. 646.31 (2) (b) 3. of the statutes is repealed.
SB320, s. 89
15Section
89. 646.31 (2) (f) (title) of the statutes is amended to read:
SB320,31,1716
646.31
(2) (f) (title)
Beneficiaries, assignees, and payees; life or disability policy
17or annuity contract.
SB320, s. 90
18Section
90. 646.31 (2) (f) 2. of the statutes is amended to read:
SB320,31,2019
646.31
(2) (f) 2. The person is a resident of this state or could have made a claim
20under par. (b)
2.
SB320, s. 91
21Section
91. 646.31 (2) (g) of the statutes is created to read:
SB320,32,222
646.31
(2) (g)
Payees; structured settlement annuity. 1. Notwithstanding par.
23(f), the claim of a payee, or of a beneficiary of a deceased payee, under a structured
24settlement annuity if the payee, or deceased payee's beneficiary, is a resident of this
1state, regardless of where the policyholder of the structured settlement annuity
2resides.
SB320,32,93
2. Notwithstanding pars. (b) and (f), the claim of a payee, or of a beneficiary of
4a deceased payee, under a structured settlement annuity if the payee, or deceased
5payee's beneficiary, is not a resident of this state, if neither the payee, or deceased
6payee's beneficiary, nor the policyholder of the structured settlement annuity is
7eligible for coverage by an organization that is comparable to the fund in the state
8of which the payee, or deceased payee's beneficiary, or the policyholder is a resident,
9and if either of the following applies:
SB320,32,1010
a. The policyholder is a resident of this state.
SB320,32,1311
b. The policyholder is not a resident of this state, but the insurer that issued
12the structured settlement annuity is domiciled in this state, and the state in which
13the policyholder resides has an organization that is comparable to the fund.
SB320, s. 92
14Section
92. 646.31 (3) of the statutes is repealed.
SB320, s. 93
15Section
93. 646.31 (5) of the statutes is repealed.
SB320, s. 94
16Section
94. 646.31 (6) (a) of the statutes is amended to read:
SB320,32,2317
646.31
(6) (a) The portion of
a
an otherwise eligible loss claim for which
18indemnification is provided by other benefits or advantages, which may not be
19included in the classes of claims specified in s. 645.68 (intro.), may not be claimed
20from the fund under this chapter
or from the insured or policyholder. The claimant
21must exhaust such collateral sources before pursuing payment from the fund. This
22paragraph does not apply to the claim of an insured or payee under a structured
23settlement annuity.
SB320, s. 95
24Section
95. 646.31 (6) (b) of the statutes is amended to read:
SB320,33,3
1646.31
(6) (b) The
board
fund may waive the application of par. (a) to claims
2under contracts subject to s. 646.35
(2) or (3), to the extent that the
board fund 3determines that application of par. (a) would be impracticable.
SB320, s. 96
4Section
96. 646.31 (7) of the statutes is amended to read:
SB320,33,85
646.31
(7) Setoffs and counterclaims. Section 645.56 applies to the
6settlement of loss claims. The
board fund shall give the liquidator a reasonable
7opportunity to inform the
board fund of possible setoffs and counterclaims before
8paying loss claims.
SB320, s. 97
9Section
97. 646.31 (8) of the statutes is amended to read:
SB320,33,1210
646.31
(8) Notice to claimants. The
board fund shall provide notice under s.
11645.47 (2) to those potential loss claimants to whom the fund is liable under the
12section, if the liquidator has not done so.
SB320, s. 98
13Section
98. 646.31 (9) (a) of the statutes is amended to read:
SB320,33,1514
646.31
(9) (a) By any security fund with an obligation to pay all loss claims of
15the insurer
;.