Minnesota: Minn. Stat. § 65A.31 to § 65A.42 sets forth the Minnesota Fair Plan, which is administered by a board of nine directors. Currently, the Plan offers maximum coverage limits of $500,000 on both fire dwelling and homeowners risks. Finally, theft coverage is included in the homeowners coverage.
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
OCI reviewed practices in the standard market and consulted with WIP in determining the changes made by this proposed rule.
9. Any analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses under s. 227.114: The changes made by this proposed rule only apply to WIP, which is a not-for-profit, unincorporated mandatory risk-sharing facility that functions as a residual property insurer and does not qualify as a small business.
10. See the attached Private Sector Fiscal Analysis.
This rule will have no significant effect on the private sector regulated by OCI.
11. A description of the Effect on Small Business:
This rule will have no effect on small businesses.
12. Agency contact person:
Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
13. Place where comments are to be submitted and deadline for submission:
Persons wishing to testify or provide oral or written comments regarding the proposed administrative rule may appear during the hearing.
Written comments can be mailed or hand-delivered to:
Timothy L. Cornelius
Legal Unit - OCI Rule Comment for Rule Ins 4.10
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
Timothy L. Cornelius
The deadline for submitting comments is 4:00 pm on February 4, 2019.
The proposed rule changes are:
SECTION 1.
Ins 4.10 (3) (a) (intro) and 1. are amended to read:(a) "Basic property insurance" means the insurance coverages described in subds. 1., 2., and 3. against direct loss to real and tangible property at a fixed location. The Plan may use customary policy forms and endorsements to effect coverage contemplated by this paragraph. Other coverage may be added to the Plan by endorsement or policy provision upon approval by the commissioner. 1. Coverage provided in the customary fire policy and in the customary extended coverage and builders risk endorsements as authorized by s. 6.75 (2) (a). SECTION 2.
Ins 4.10 (3) (a) 2. is repealed.SECTION 3.
Ins 4.10 (4) (b) is amended to read: (b) The maximum limits of coverage for the type of basic property insurance defined in sub. (3) (a) 1. which may be placed under the Plan are $200,000$350,000 on the dwelling and $100,000$175,000 on personal property for any habitational risk at one location and $500,000 on any other eligible risk.
SECTION 4.
Ins 4.10 (4) (c) is repealed.SECTION 5.
Ins 4.10 (4) (d) is amended to read:(c) The maximum limits of coverage for the type of basic property insurance defined in sub. (3) (a) 3. which may be placed under the Plan are $200,000$350,000 on the dwelling with the customary percentage limits for other structures, personal property and loss of use and $100,000 on personal liability and $1,000 medical payments to others for any risk at one location.
SECTION 6.
Ins 4.10 (6) (b) (intro.), 1. and 3. are amended to read: The governing committee shall consist of 1511 members, each of whom shall serve for a period of one year or until a successor is elected or designated. Each shall have one vote.
1. The following associations shall appoint or elect members as follows:
American Insurance Association—one member
Alliance of American Insurers—one member
National Association of Independent Insurers—one member
Wisconsin Insurance Alliance—4 membersFour members shall be nominated by national and state associations that represent property and casualty insurers. If more than four members are nominated, the commissioner shall designate the four members from the list of nominations.
3. The commissioner shall appoint members to represent:
stock agents—one member
mutual agents—one member
consumers and other persons not affiliated in any way with the insurance industry—54 members
SECTION 7.
Ins 4.10 (7) (a) is amended to read:DUTIES OF THE GOVERNING COMMITTEE. (a) The governing committee shall meet as often as may be required to perform the general duties of the administration of the Plan or on the call of the commissioner. EightSix members of the committee present or by proxy shall constitute a quorum. Members of the committee who choose to appoint a proxy shall give a written proxy to the person elected to act as proxy. The written proxy shall then be filed with the governing committee, thus ensuring the validity of the proxy's actions as the governing committee performs its duties.
SECTION 8.
Ins 4.10 (8) (c) is amended to read:(c) The time and place of all meetings shall be reasonable. Twenty days' notice of an annual or special meeting shall be given in writing by the governing committee to all insurers as defined by sub. (3) (d). EightSix members present in person or by proxy shall constitute a quorum. Voting by proxy shall be permitted.
SECTION 9.
INITIAL APPLICABILITY. This rule first applies to contracts issued on January 1, 2020.SECTION 10.
EFFECTIVE DATE. These changes will take effect on the first day of the month after publication, as provided in s. 227.22(2)(intro.), Stats.Dated at Madison, Wisconsin, this day of , 2020.
________________________
Nathan D. Houdek
Deputy Commissioner of Insurance
Office of the Commissioner of Insurance
Private Sector Fiscal Analysis
for Section Ins 4.10 relating to the Wisconsin Insurance Plan ("WIP")
