LRB-4745/1
PJK:skg:jlb
1995 - 1996 LEGISLATURE
January 30, 1996 - Introduced by Representative Albers. Referred to Committee
on Insurance, Securities and Corporate Policy.
AB836,1,3
1An Act to repeal 646.35 (6) (bm) 2.;
to consolidate, renumber and amend
2646.35 (6) (bm) (intro.) and 1.;
to repeal and recreate 646.01 (1) (a) 2. e.; and
3to create 646.03 (2r) of the statutes;
relating to: the insurance security fund.
Analysis by the Legislative Reference Bureau
The insurance security fund (fund) under current law pays claims under
insurance policies or annuities that were issued by an insurer that is in liquidation.
Certain insurers, however, are exempt from participation in the fund. Those
insurers do not pay assessments into the fund, and the fund does not pay claims
under policies or annuities issued by those insurers when those insurers are in
liquidation. Those insurers that are exempt from participation in the fund are
fraternals that are not health maintenance organization insurers, assessable
mutuals, mutual municipal insurers, issuers of gift annuities, service insurance
corporations that are not health maintenance organization insurers, motor clubs,
state insurance funds and risk retention groups. This bill requires all service
insurance corporations to participate in the fund and exempts limited service health
organization insurers from participation in the fund.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB836, s. 1
4Section
1. 646.01 (1) (a) 2. e. of the statutes is repealed and recreated to read:
AB836,1,55
646.01
(1) (a) 2. e. Limited service health organization insurers.
AB836, s. 2
6Section
2. 646.03 (2r) of the statutes is created to read:
AB836,2,2
1646.03
(2r) "Limited service health organization" has the meaning given in s.
2609.01 (3).
AB836, s. 3
3Section
3. 646.35 (6) (bm) (intro.) and 1. of the statutes are consolidated,
4renumbered 646.35 (6) (bm) and amended to read:
AB836,2,95
646.35
(6) (bm) For coverages continued pursuant to par. (b), the board may
do
6any of the following: 1. Substitute substitute a comprehensive health insurance
7policy approved by the commissioner for a health maintenance organization policy
8that is subject to sub. (2) or (3), and increase rates or premiums for the substituted
9coverage as provided in sub. (5).
AB836, s. 4
10Section
4. 646.35 (6) (bm) 2. of the statutes is repealed.
