2007 WISCONSIN ACT 170
An Act to repeal
646.35 (6) (c) 1. a. and 646.35 (6) (c) 2. a.; to renumber
646.33 (3), 646.35 (4) (a) and 646.35 (4) (b); to renumber and amend
601.465, 605.02, 631.61 (1) (c), 646.12 (1) (a) and 646.31 (11); to consolidate, renumber and amend
646.35 (6) (c) 1. (intro.) and b. and 646.35 (6) (c) 2. (intro.) and b.; to amend
25.17 (3) (a), 76.68 (2), 76.68 (4), 601.41 (8) (b), 605.21 (4), 611.26 (3) (a), 611.26 (4) (a), 611.26 (4) (b), 611.72 (2), 632.745 (18) (b), 646.01 (1) (b) 14., 646.11 (4), 646.11 (5), 646.12 (1) (b), 646.12 (2) (a), 646.51 (3) (am) (intro.) and 646.51 (4) (a); to create
25.14 (1) (a) 19., 600.03 (25) (a) 4., 601.465 (1m) (title), 601.465 (2m), 605.02 (2), 631.61 (1) (c) 1., 631.61 (1) (c) 2., 631.61 (1) (c) 3., 632.07, 646.12 (1) (a) 2., 646.12 (1) (a) 3., 646.13 (3) (d), 646.31 (11) (a), 646.31 (11) (c) and 646.51 (3) (b) of the statutes; and to affect 2003 Wisconsin Act 261
, section 162 (1)
; relating to: the definition of a late enrollee; making group insurance certificates available electronically; prohibiting a lender from requiring property insurance in an amount that exceeds the replacement value of improvements; premium tax statute of limitations; miscellaneous changes to the insurance security fund; investments of the local government property insurance fund by the State of Wisconsin Investment Board, other miscellaneous insurance-related modifications; and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
25.14 (1) (a) 19. of the statutes is created to read:
25.14 (1) (a) 19. The local government property insurance fund.
25.17 (3) (a) of the statutes is amended to read:
25.17 (3) (a) Invest the core retirement investment trust, state life fund, local government property insurance fund, veterans trust fund, and injured patients and families compensation fund in loans, securities, and any other investments authorized by s. 620.22, and in bonds or other evidences of indebtedness or preferred stock of companies engaged in the finance business whether as direct lenders or as holding companies owning subsidiaries engaged in the finance business. Investments permitted by sub. (4) are permitted investments under this subsection.
76.68 (2) of the statutes is amended to read:
76.68 (2) No suit may be brought to restrain or enjoin the collection of any license fee or tax imposed or provided for by this subchapter, and the fees required by s. 601.31. Any insurer aggrieved by the payment of any such license or other fee or tax may maintain a suit against the state for the recovery thereof action to recover any license fee or tax imposed or provided for by this subchapter or any fee required under s. 601.31, shall be brought in the circuit court for Dane County within 6 months from the time of the payment. The state may be served in the suit as provided in s. 801.11 (3). This subsection is the exclusive remedy by which to recover any license fee or tax imposed or provided for by this subchapter or any fee required under s. 601.31.
76.68 (4) of the statutes is amended to read:
76.68 (4) The attorney general shall institute suit in the circuit court for Dane County to recover any license fees or tax not paid within the time prescribed by this subchapter, and the fees required by s. 601.31. Nothing in this subsection shall be construed as amending or modifying in any respect ch. 775.
600.03 (25) (a) 4. of the statutes is created to read:
(a) 4. Coverage, including stop-loss coverage, of an employer or plan sponsor relating to claims incurred under the employer's or plan sponsor's self-funded employee welfare benefit plan, as defined in 29 USC 1002
601.41 (8) (b) of the statutes is amended to read:
601.41 (8) (b) In consultation with the life and disability advisory council established appropriate advisory council or committee designated by the commissioner, the commissioner shall by rule develop a uniform employee application form that a small employer insurer must use when a small employer applies for coverage under a group health benefit plan offered by the small employer insurer. The commissioner shall revise the form at least every 2 years.
601.465 of the statutes is renumbered 601.465 (1m), and 601.465 (1m) (c) (intro.) and 6., as renumbered, are amended to read:
601.465 (1m) (c) (intro.) Testimony, reports, records, communications, and information that are obtained by the office from, or provided by the office to, any of the following, under a pledge of confidentiality or for the purpose of assisting or participating in monitoring activities or in the conduct of an inquiry, investigation
, or examination:
6. An agent or employee of an agency described in par. (e) subd. 5.
601.465 (1m) (title) of the statutes is created to read:
601.465 (1m) (title) Types of information.
601.465 (2m) of the statutes is created to read:
601.465 (2m) Waiver and applicability of the privilege. All of the following apply to the privilege under this section:
(a) The privilege may be waived only by the affirmative written and specific consent of the commissioner.
(b) The privilege may not be constructively waived.
(c) The privilege applies to testimony, reports, records, communications, and information obtained, created, or provided by any official, employee, or agent of the office for the purpose of assisting or participating in monitoring activities or in the conduct of an inquiry, investigation, or examination by, or coordinated through, the National Association of Insurance Commissioners.
(d) The privilege applies to testimony, reports, records, communications, and information in existence on or after the effective date of this paragraph .... [revisor inserts date].
605.02 of the statutes is renumbered 605.02 (1) and amended to read:
605.02 (1) Property of local governmental units. Any local governmental unit may insure in the property fund its property or, subject to sub. (2), property for which it may be liable in the event of damage or destruction. Property insured under this section by a local governmental unit may not also be insured in any other manner unless the manager certifies that additional insurance is necessary, or unless the local governmental unit by resolution, a certified copy of which is filed with the manager, decides to insure specified personal property with insurers authorized to do business in this state.
605.02 (2) of the statutes is created to read:
605.02 (2) Requirements for nonowned property. The property fund may cover a building or structure specified in sub. (1) that is not owned by a local governmental unit only if all of the following conditions are met:
(a) The building or structure is listed and described as a nonowned building or structure in the local governmental unit's statement of values.
(b) The local governmental unit is contractually liable in the event that the building or structure is damaged or destroyed.
(c) The building or structure is in the local governmental unit's care, custody, or control.
(d) The building or structure is used for a legitimate governmental purpose.
605.21 (4) of the statutes is amended to read:
605.21 (4) Insurance of personal property. All personal property of the local governing unit is insured and premiums therefor must be paid under this section except to the extent that coverage is excluded by resolution under s. 605.02 (1).
611.26 (3) (a) of the statutes is amended to read:
611.26 (3) (a) Authorization. An insurance corporation may form or acquire subsidiaries to perform functions or provide services that are ancillary to its insurance operations. It may have up to 10% of its assets invested in such subsidiaries, unless the commissioner by order or rule provides otherwise.
611.26 (4) (a) of the statutes is amended to read:
611.26 (4) (a) Invest in a subsidiary
one or more subsidiaries more than 10 percent of its assets or 50 percent of its capital and surplus, whichever is less.
611.26 (4) (b) of the statutes is amended to read:
611.26 (4) (b) Invest in a subsidiary
one or more subsidiaries to the extent that the insurer's capital and surplus with regard to policyholders will not be reasonable in relation to the insurer's outstanding liabilities or adequate to meet the insurer's financial needs.
611.72 (2) of the statutes is amended to read:
611.72 (2) Approval required. No proposed plan of merger under s. 180.1101 or 180.1104 or other plan for acquisition of control may be submitted to the shareholders of any domestic stock insurance corporation or its parent insurance holding corporation participating in the transaction or may be executed unless it has been approved by the commissioner.
631.61 (1) (c) of the statutes is renumbered 631.61 (1) (c) (intro.) and amended to read:
631.61 (1) (c) Method of providing certificates. (intro.) The certificate shall be provided in a manner reasonably calculated to bring it to the attention of the certificate holder. The insurer may deliver or mail it directly to the certificate holder or may deliver or mail the certificates in bulk to the policyholder to transmit to certificate holders, unless the insurer has reason to believe that the policyholder will not promptly transmit the certificates. An affidavit by the insurer that it has mailed the certificates in the usual course of business creates a rebuttable presumption that it has done so. As an alternative to delivering or mailing the certificate, the insurer may make the certificate available electronically through an online internet or policyholder network Web site. If the insurer makes the certificate available electronically, the insurer shall do all of the following:
631.61 (1) (c) 1. of the statutes is created to read:
631.61 (1) (c) 1. Request the policyholder to post the information, as well as instructions on how to access the certificate, in the policyholder's place of business or to publish the information and access instructions in a house organ that is reasonably calculated to bring the information to the attention of the certificate holders.
631.61 (1) (c) 2. of the statutes is created to read:
631.61 (1) (c) 2. Provide notice to the policyholder of any subsequent change in the certificate and request the policyholder to notify the certificate holders of the change in the manner specified in subd. 1.
631.61 (1) (c) 3. of the statutes is created to read:
631.61 (1) (c) 3. Provide a paper copy of the certificate to any certificate holder upon request.
632.07 of the statutes is created to read:
632.07 Prohibiting requiring property insurance in excess of replacement value. A lender may not require a borrower, as a condition of receiving or maintaining a loan secured by real property, to insure the property against risks to improvements on the real property in an amount that exceeds the replacement value or market value of the improvements, whichever is greater.
632.745 (18) (b) of the statutes is amended to read:
632.745 (18) (b) A special enrollment period under s. 632.746 (6) or (7).
646.01 (1) (b) 14. of the statutes is amended to read: