LRB-2897/2
PJK:skg:km
1995 - 1996 LEGISLATURE
October 2, 1995 - Introduced by Representatives Jensen, Duff, Dobyns,
Ziegelbauer, Kreibich, Ward, Schneiders, Gunderson, Ainsworth, Freese,
Nass, Green, Silbaugh, Harsdorf, Ott, Seratti, Ladwig, Skindrud and
Walker, cosponsored by Senators Zien, Huelsman, Buettner, Fitzgerald and
Cowles. Referred to Committee on Insurance, Securities and Corporate
Policy.
AB588,1,2
1An Act to renumber 607.02 (2);
to amend 607.07 (2); and
to create 607.02 (2)
2(b) of the statutes;
relating to: state life insurance fund.
Analysis by the Legislative Reference Bureau
The office of the commissioner of insurance administers the state life insurance
fund (fund). The fund may issue any type of life insurance policy, not exceeding
$10,000, to a state resident. Premiums are paid into the fund, and net profits are
distributed annually among policyholders. This bill provides that no more life
insurance policies may be issued from the fund after 90 days after the date on which
the bill becomes law. Term policies in force on the 90th day after the date on which
the bill becomes law, however, may continue to be converted to whole life policies.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB588, s. 1
3Section
1. 607.02 (2) of the statutes is renumbered 607.02 (2) (a).
AB588, s. 2
4Section
2. 607.02 (2) (b) of the statutes is created to read:
AB588,1,85
607.02
(2) (b) No policies may be issued after 90 days after the effective date
6of this paragraph .... [revisor inserts date]. This paragraph does not apply to the
7conversion to a whole life policy of a term policy that is in force on the 90th day after
8the effective date of this paragraph .... [revisor inserts date].
AB588, s. 3
1Section
3. 607.07 (2) of the statutes is amended to read:
AB588,2,62
607.07
(2) Underwriting approval. The manager or the manager's designee
3shall pass upon all applications for insurance.
If
Subject to s. 607.02 (2) (b), if the
4application is accepted, the premium shall be paid into the life fund and a policy shall
5be issued, signed by the manager, promising payment out of the life fund without
6further liability on the part of the state.
