1999 WISCONSIN ACT 30
An Act to repeal 628.77, 632.55, 644.05 (3), 646.31 (2) (d) 2. and 646.31 (2) (d) 3.; to renumber 645.68 (2); to renumber and amend 600.03 (28p), 632.47 (3), 646.13 (1) (b) (intro.), 646.13 (1) (b) 1. and 646.13 (1) (b) 2.; to consolidate, renumber and amend 646.31 (2) (d) (intro.) and 1.;
to amend 76.635 (2), 76.635 (3), 76.67 (2), 601.13 (2), 601.43 (3), 601.43 (4), 601.715 (2) (b), 611.26 (1), 611.72 (3) (intro.), 611.78 (1m) (b) (intro.), 628.10 (2) (a), 644.04 (3) (intro.), 644.05 (1), 644.05 (2), 644.05 (4), 644.08, 644.09 (1) (intro.), 644.09 (1) (a), 644.09 (2), 644.09 (3), 644.09 (4), 644.14 (1), 644.16 (1), 644.16 (2), 644.16 (3) (a), 644.16 (4), 644.17, 644.18, 644.19, 644.28 (1), 644.28 (2) (a), 644.28 (3), 644.28 (4), 644.29, 645.68 (intro.), 645.68 (3), 645.68 (5), 645.68 (7), 645.68 (8) (a), 645.68 (8) (b), 645.68 (8) (c), 645.68 (8) (d), 645.68 (8) (e), 645.68 (8) (f), 646.15 (1) (a) 2., 646.31 (1) (a), 646.31 (2) (c), 646.31 (6) (a), 646.60 (1) (a), 646.60 (1) (b) (intro.), 646.60 (1) (b) 1. and 646.60 (1) (b) 2.; to repeal and recreate 644.26; and to create 600.03 (28p) (b), 600.03 (28p) (c), 601.42 (7), 601.465 (3) (e), 601.465 (3) (f), 611.72 (3m), 632.47 (3) (b), 645.68 (3c), 645.68 (3m), 645.68 (3r) (c), 646.13 (2) (e), 646.13 (2) (f), 646.13 (3) (intro.), 646.13 (3) (c), 646.13 (4), 646.31 (1) (cm), 646.31 (13) and 646.51 (9) of the statutes; relating to: priority of claims for distribution in insurance liquidations, the insurance security fund, conforming the mutual insurance holding company provisions to changes made in the nonstock corporation provisions, the certified capital investment credit for insurers and miscellaneous changes to insurance statutes.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
76.635 (2) Credit. An insurer that makes a certified capital investment may credit against the fees due under s. 76.60, 76.63, 76.65 or, 76.66 or 76.67, for 10 years beginning with the year of the investment, either 10% of that investment or the amount by which the sum of the insurer's certified capital investments and the insurer's qualified investments exceeds the insurer's qualified investments in the taxable year before the insurer first claimed the credit under this section, whichever is less.
76.635 (3) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees under s. 76.60, 76.63, 76.65 or, 76.66 or 76.67 otherwise due, the unused balance may be carried forward and credited against those fees in the following years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the investment was made and the year in which the carry-forward credit is claimed.
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3. 76.67 (2) of the statutes is amended to read:
76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credit under s. 76.635, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under s. 76.635 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.
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4. 600.03 (28p) of the statutes is renumbered 600.03 (28p) (intro.) and amended to read:
600.03 (28p) (intro.) "Medicare replacement policy" means a, to the extent permitted under federal law, any of the following:
(a) A disability insurance policy or certificate issued to a resident of this state pursuant to a contract between the federal health care financing administration and a federally qualified health maintenance organization or a federally certified competitive medical plan to provide health care benefits to persons eligible for medicare under
42 USC 1395f,
1395x and
1395mm.
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5. 600.03 (28p) (b) of the statutes is created to read:
600.03
(28p) (b) A medicare+choice plan, as defined in
42 USC 1395w-28 (b) (1), or a contract with a medicare+choice organization, as defined in
42 USC 1395w-28 (a) (1).
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6. 600.03 (28p) (c) of the statutes is created to read:
600.03 (28p) (c) A plan, contract or policy that the commissioner by rule determines is similar to, or supplements or replaces, a program described in par. (a) or (b).
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7. 601.13 (2) of the statutes is amended to read:
601.13 (2) Terms of deposit. Unless otherwise provided by the law requiring or permitting the deposit, each deposit shall be held in trust: first, for the claimants under s. 645.68 (3); 2nd, for the claimants under s. 645.68 (3c); 3rd, for the claimants under s. 645.68 (3m); 4th, for the claimants under s. 645.68 (4); and thereafter, for all other creditors in the order of priority established by s. 645.68. No claim may be made against the deposit of an alien insurer unless the claim arises out of a transaction in the United States.
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8. 601.42 (7) of the statutes is created to read:
601.42 (7) Experts. The commissioner may employ experts to assist the commissioner in an examination or in the review of any transaction subject to approval under chs. 600 to 646. The person that is the subject of the examination, or that is a party to a transaction under review, including the person acquiring, controlling or attempting to acquire the insurer, shall pay the reasonable costs incurred by the commissioner for the expert and related expenses.
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9. 601.43 (3) of the statutes is amended to read:
601.43 (3) Audits or actuarial or other evaluations. In lieu of all or part of an examination under subs. (1) and (2), or in addition to it, the commissioner may order an independent audit by certified public accountants or an actuarial or other evaluation by actuaries or other experts approved by the commissioner of any person subject to the examination requirement. Any accountant or, actuary or other expert selected is subject to rules respecting conflicts of interest promulgated by the commissioner. Any audit or evaluation under this section is subject to s. 601.44, so far as appropriate.
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10. 601.43 (4) of the statutes is amended to read:
601.43 (4) Alternatives to examination. In lieu of all or part of an examination under this section, the commissioner may accept the report of an audit already made by certified public accountants or of an actuarial
or other evaluation already made by actuaries or other experts approved by the commissioner, or the report of an examination made by the insurance department of another state or of the examination by another government agency in this state, the federal government or another state.
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11. 601.465 (3) (e) of the statutes is created to read:
601.465 (3) (e) An international, federal, state or local regulatory or law enforcement agency.
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12. 601.465 (3) (f) of the statutes is created to read:
601.465 (3) (f) An agent or employe of an agency described in par. (e).
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13. 601.715 (2) (b) of the statutes is amended to read:
601.715 (2) (b) An authorized insurer may change its registered agent no more than one time per year. Any change of registered agent is effective on January 1 of the year following the delivery of the statement under par. (a).
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14. 611.26 (1) of the statutes is amended to read:
611.26 (1) Insurance subsidiaries. An insurance corporation may form or acquire subsidiaries to do any lawful insurance business. There is no limit on the amount of investment in such subsidiaries except that the commissioner may by order or rule establish a limit and, for purposes of ss. 623.11 and 623.12, the total value of the outstanding shares of such a subsidiary shall be deemed to equal the amount of surplus possessed by the subsidiary in excess of its security surplus, as determined by the commissioner under s. 623.12.
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15. 611.72 (3) (intro.) of the statutes is amended to read:
611.72 (3) Grounds for disapproval. (intro.) The commissioner shall approve the plan if the commissioner finds, after a hearing, unless a hearing is not required under sub. (3m), that it would not violate the law or be contrary to the interests of the insureds of any participating domestic corporation or of the Wisconsin insureds of any participating nondomestic corporation and that:
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16. 611.72 (3m) of the statutes is created to read:
611.72 (3m) Hearing not required. A hearing is not required under sub. (3) before approval of a proposed plan of merger or other plan for acquisition of control if the proposed merger is with, or the proposed acquirer is, an affiliate of the insurer and the proposed merger or other acquisition of control does not change the controlling person of the insurer.
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17. 611.78 (1m) (b) (intro.) of the statutes is amended to read:
611.78 (1m) (b) (intro.) A sale, lease, exchange or other disposition of all or substantially all of the property and assets under par. (a) of a mutual may be made upon such terms and conditions as may be authorized only in the following manner:
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18. 628.10 (2) (a) of the statutes is amended to read:
628.10 (2) (a) For failure to comply with continuing education requirements. The commissioner may by order suspend the license of any intermediary who fails to produce evidence of compliance with continuing education standards set by the commissioner is suspended, effective on the day on which the evidence of compliance is due. If an intermediary whose license has been suspended under this paragraph produces evidence of compliance within 60 days after the date on which the license is suspended, the commissioner shall reinstate the license effective on the date of suspension. If such an intermediary does not produce evidence of compliance within 60 days, the license is revoked and the intermediary may be relicensed only after satisfying all requirements under s. 628.04.
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19. 628.77 of the statutes is repealed.
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20. 632.47 (3) of the statutes is renumbered 632.47 (3) (intro.) and amended to read:
632.47 (3) Group annuities
Prohibition on assignment. (intro.) Assignment may be expressly prohibited by a any of the following:
(a) A group contract providing annuities as retirement benefits.
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21. 632.47 (3) (b) of the statutes is created to read:
632.47 (3) (b) An annuity contract that is subject to transferability restrictions under any federal or state tax, employe benefit or securities law.
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22. 632.55 of the statutes is repealed.
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23. 644.04 (3) (intro.) of the statutes is amended to read:
644.04 (3) (intro.) Subject to s. 611.33, the The converted insurance company, subject to s. 611.33, and any intermediate stock holding company may thereafter issue to 3rd parties debt securities, stock other than voting stock and, subject to s. 644.15, voting stock, so long as all of the following are true:
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24. 644.05 (1) of the statutes is amended to read:
644.05 (1) Powers. Section 181.04 Subject to s. 644.19 (2) and (3), s. 181.0302 (intro.), (1) to (15), (18) and (19) applies to mutual holding companies.
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25. 644.05 (2) of the statutes is amended to read:
644.05 (2) Effect of unauthorized corporate acts. Section 181.057 (1) and (2) 181.0304 applies to mutual holding companies, except that, for purposes of this subsection, "attorney general" used in s. 181.0304 (3) means "commissioner".
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26. 644.05 (3) of the statutes is repealed.
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27. 644.05 (4) of the statutes is amended to read:
644.05 (4) Waiver of notice and informal action by members or directors. Sections 181.70 and 181.72 181.0704, 181.0706, 181.0821 and 181.0823 apply to mutual holding companies. For purposes of this subsection, "board" used in s. 181.0821 includes "committee of the board of a mutual holding company".
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28. 644.08 of the statutes is amended to read:
644.08 Reservation of corporate name.
Section 181.07 applies Sections 181.0402 and 181.0403 (2), (3) and (3m) apply to mutual holding companies.
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29. 644.09 (1) (intro.) of the statutes is amended to read:
644.09 (1) Articles. (intro.) Section 181.31 181.0202 applies to the articles of a mutual holding company, except that all of the following apply:
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30. 644.09 (1) (a) of the statutes is amended to read:
644.09 (1) (a) The name of the mutual holding company shall include the word "mutual" and shall comply with s. 181.06 (3) 181.0401 (2) to (4).
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31. 644.09 (2) of the statutes is amended to read:
644.09 (2) Amendment of articles. A mutual holding company may amend its articles in the manner provided in ss. 181.35 to 181.37 and 181.39 181.1001, 181.1002 (1), 181.1003, 181.1005 and 181.1006, except that papers required by those sections to be filed with the department of financial institutions shall instead be filed with the commissioner. The articles may be amended in any desired respect, including substantial changes of its original purposes, except that no amendment may be made that is contrary to sub. (1). In addition to the requirements of s. 181.37 181.1005, the articles of amendment of a mutual holding company shall, if mail voting is used, state the number of members voting by mail and the number of such members voting for and against the amendment. No amendment may become effective until the articles of amendment have been filed with the commissioner. No amendment shall affect any existing cause of action in favor of or against such mutual holding company, any pending suit civil, criminal, administrative or investigatory proceeding to which the mutual holding company is a party or the existing rights of persons other than members. In the event that the corporate name is changed by amendment, no suit brought by or against such mutual holding company under its former name shall abate for that reason.
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32. 644.09 (3) of the statutes is amended to read:
644.09 (3) Bylaws. The bylaws of a mutual holding company shall comply with this chapter. A copy of the bylaws and any amendments to the bylaws shall be filed with the commissioner within 60 days after adoption. Subject to this subsection, s. 181.13 applies ss. 181.0206, 181.0207 and 181.1021 apply to mutual holding companies.
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33. 644.09 (4) of the statutes is amended to read:
644.09 (4) Principal officers. Section 181.25 (1) and (2) applies Sections 181.0840 and 181.0841 apply to mutual holding companies.
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34. 644.14 (1) of the statutes is amended to read:
644.14 (1) Communication to members; member voting. Subject to this section, ss. 611.41, 611.42 (1), (1e), (1m), (2), (3), (4) (a) and (5), 611.43 and 611.53 (2) apply to mutual holding companies.
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35. 644.16 (1) of the statutes is amended to read:
644.16 (1) Board of directors. Subject to this section, ss. 181.18, 181.21 181.0801 (1) and (2), 181.0802, 181.0811, 611.51 (2), (3), (5) and (8) and 611.53 (1) and (3) apply to mutual holding companies. Section 181.22 181.0824 applies to the board of a mutual holding company except as modified by s. 181.225 611.10. The board shall manage the business and affairs of the corporation and may not delegate its power or responsibility to do so, except to the extent authorized by ss. 181.23 and 181.25 (2) 181.0825 and 181.0841.
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36. 644.16 (2) of the statutes is amended to read:
644.16 (2) Committees of directors. Section 181.23 181.0825 applies to mutual holding companies.
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37. 644.16 (3) (a) of the statutes is amended to read:
644.16 (3) (a) Section 611.51 (9) (a)
(am) and (b) applies to mutual holding companies.
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38. 644.16 (4) of the statutes is amended to read:
644.16 (4) Director conflicts of interest. Section 181.225 611.60 applies to mutual holding companies.
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39. 644.17 of the statutes is amended to read:
644.17 Removal of officers. Section 181.26 applies Sections 181.0843 and 181.0844 apply to mutual holding companies.
