A domestic insurer is required to by March 1 annually file a risk based capital calculation and report with OCI. OCI may also require non-domestic insurers to file such a report.
An insurer may request a hearing to contest an OCI determination of its level of risk based capital or with respect to a plan submitted by the insurer. The commissioner may keep risk based capital reports confidential. However financial statements from which risk based capital is calculated are public. The use of risk based capital levels of competitors for marketing purposes is prohibited as misleading.
The risk based capital requirements do not apply to a health maintenance organization insurer, limited service health organizations, town mutual insurers, school benefit plans, motor vehicle clubs, fraternal insurers, or to insurance plans administered under the direct supervision of OCI. The risk based capital requirements will apply to insurance service corporations after the commissioner makes a determination that appropriate risk based capital reporting forms and instructions have been developed through the NAIC. The commissioner may by order subject an exempt insurer to the risk based capital requirement. Also, the commissioner may by order exempt any domestic property and casualty insurer which does business only in this state, and no more than $3,000,000 in annual premium, from risk based capital requirements.
Permanent Capital, Compulsory Surplus And Security Surplus Requirements.
This rule supplements, is in addition to, and does not replace the existing capital, compulsory surplus and security surplus requirements which apply to domestic and non-domestic insurers. Also, the procedural rights and process prescribed in the rule for risk based capital apply solely to risk based capital requirements and not to proceedings or determinations made under the existing capital, compulsory surplus or security surplus requirements and not to grounds asserted in a delinquency proceeding.
The rule does apply the existing capital, compulsory surplus and security surplus requirements to insurance service corporations.
The rule is effective on January 1, 1997, and applies to reports for year end calendar year 1996.
Summary of Fiscal Estimate
There will be no state or local government fiscal effect.
Initial Regulatory Flexibility Analysis
This rule may have an impact on insurers which are small businesses. The rule includes exceptions or provisions form exemptions which will be available to small insurers. The professional skills, reporting, and record keeping required to comply with this rule are primarily accounting and actuarial in nature and will not significantly differ from existing requirements.
A copy of the text of the proposed rule and fiscal estimate may be obtained from Meg Gunderson, Services Section, Office of the Commissioner of Insurance, 121 East Wilson Street, P. O. Box 7873, Madison, Wisconsin 53707-7873, (608) 266-0110.
Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Agriculture, Trade & Consumer Protection (CR 95-190):
Ch. ATCP 42 - Relating to commercial feed.
Agriculture, Trade & Consumer Protection (CR 96-15):
Ch. ATCP 99 - Relating to grain warehouse keepers and grain dealers.
Architects, Landscape Architects, Professional Geologists, Professional Engineers, Designers and Land Surveyors Examining Board (CR 96-49):
S. A-E 3.05, 4.08, 5.04, 6.05, 9.05 and 10.05 - Relating to examination reviews.
S. DE 12.01 (3) - Relating to the delegation of the polishing portion of an oral prophylaxis by a dentist to an unlicensed person.
Ch. HSS 89 - Relating to assisted living facilities.
Industry, Labor & Human Relations (CR 95-228):
Ch. ILHR 5 - Relating to credentials.
Industry, Labor & Human Relations (CR 96-13):
Ch. ILHR 16 - Relating to Electrical Code, Volume 2.
SS. Ins 17.01, 17.26 and 17.28 - Relating to annual patients compensation fund and mediation fund fees for the fiscal year beginning July 1, 1996, future medical expense attachment point changing from $25,000 to $100,000.
S. Med 10.02 (2) (q) - Relating to unprofessional conduct.
Ch. NR 48 - Relating to the applications to withdraw lands entered as county forest.
SS. NR 10.102 and 10.30 - Relating to bear hunting.
SS. NR 10.01, 10.09, 10.117, 11.04 and 15.024 - Relating to hunting and trapping.
Ch. Tax 9 - Relating to cigarette taxes.
Ch. Trans 258 - Relating to seed potato overweight permits.
Administrative Rules Filed With The
Revisor Of Statutes Bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
An order amending s. Chir 9.03 (6), relating to approved chiropractic college preceptorship programs.
An order amending s. ElBd 6.04, relating to filing documents with filing officers by means of facsimile (FAX) transmission.
An order affecting ss. HSS 201.30 and 201.303, relating to participation of Aid to Families with Dependent Children (AFDC) recipients in the AFDC Benefit Cap Demonstration Project.
Industry, Labor & Human Relations (CR 96-5):
An order affecting ss. Ind 80.60 and 80.64, relating to self-insurance application fees.
Industry, Labor & Human Relations (CR 96-6):
An order creating s. Ind 80.62, relating to the uninsured employers fund.
Industry, Labor & Human Relations (CR 96-24):
An order creating s. Ind 80.15, relating to payment after order.
Insurance, Office of the Commissioner of (CR 95-204):
An order affecting ss. Ins 3.455 and 3.46, relating to the requirements for long-term care insurance sold in Wisconsin.
An order affecting ss. NR 812.09 and 812.33, relating to fiberglass pressure tank use in private wells.
An order affecting ch. NR 120, relating to the Nonpoint Source Pollution Abatement program.
An order creating s. NR 19.30, relating to requiring criminal history checks on all vollunteer all-terrain vehicle (ATV), boating, bowhunter, hunter education and snowmobile safety instructors.
An order creating s. NR 1.52, relating to a policy on promulgation of environmental quality standards.
An order affecting ss. NR 150.03 and 605.05 and the chs. NR 500-- series, relating to solid waste management.