This bill makes a variety of minor and technical changes in the insurance
statutes, including the following:
1. Under current law, a person with a claim against a health care provider may
recover from the patient's compensation fund only if the health care provider has
coverage under the fund and the fund is named as a party in the action. The bill
provides that, in addition, the fund must be named as a party in the action within
the time limit that applies to naming the health care provider in the action.
2. Current law provides that, if real property that is owned and occupied as a
dwelling is wholly destroyed, the amount of the loss, for insurance purposes, is the
limits of any policy covering the property. A Wisconsin administrative rule provides
that, if property owned and occupied as a dwelling is also used for commercial
purposes, except on an incidental basis, the statute regarding the amount of loss in
case of destruction does not apply to the property. The Wisconsin supreme court, in
Seider v. O'Connell, 236 Wis. 2d 211, 612 N.W. 2d 659 (2000), determined that the
administrative rule is invalid because it exceeds the statutory authority of the office
of the commissioner of insurance (OCI), which promulgated the rule. The bill limits
the applicability of the statute to real property that is owned and occupied primarily
as a dwelling.
3. Under current law, the commissioner of insurance (commissioner) may issue
a temporary license to a person to act as an insurance agent, other than a life
insurance agent, in various specified situations, such as when an agent dies or enters
active duty in the armed services. A temporary license may be issued for up to three
months, with extensions of up to three months each, not exceeding 12 months in all.
The bill authorizes a temporary license to be issued for life insurance agents also, and
changes the period for which any temporary agent's license may be issued to no more
than 12 months, with no extensions.
4. Under current law, the annual license renewal for viatical settlement
providers and viatical settlement brokers occurs on the anniversary date of the
original issuance of each individual license. To simplify administration, the bill
changes the annual renewal date of both types of licenses to July 1.
5. The bill authorizes the commissioner, as manager of the state life insurance
fund and the local government property insurance fund, to keep confidential

personally identifiable information obtained by the commissioner in the course of
operating such a fund.
6. Under current law, if a town mutual provides coverage against windstorm
or hail or other perils with a similar potential for catastrophic losses, the town
mutual is required to obtain stop-loss reinsurance to an extent reasonably adequate
to cover the risk of loss. If a town mutual provides nonproperty insurance, the town
mutual must obtain reinsurance of at least a 90% proportional share of each risk.
An administrative rule, however, requires unlimited aggregate excess of loss
reinsurance for all risks covered by either property or nonproperty insurance. The
bill brings the rule and statute into conformity by requiring a town mutual that
covers potentially catastrophic losses to obtain stop-loss reinsurance to an extent or
in an amount specified by the commissioner by rule, and by authorizing the
commissioner to require, by rule, other reinsurance than that specified for risks
covered by nonproperty insurance provided by a town mutual.
7. Under current law, an agency may, with the consent of the revisor of statutes
and the attorney general, adopt standards established by technical societies and
organizations of recognized national standing through incorporation of the
standards by reference in an administrative rule of the agency. The bill authorizes
OCI to adopt standards of the National Association of Insurance Commissioners
through incorporation of the standards by reference in an administrative rule of OCI
without having to obtain the consent of the revisor or the attorney general.
8. Current law provides that a person may not do an insurance business in this
state if the person knows or should know that the result is or might be the illegal
placement of insurance with an unauthorized insurer or the subsequent servicing of
an insurance policy illegally placed with an unauthorized insurer. The bill provides
that OCI may by rule promulgate standards for establishing that a person should
have known that the result of the insurance business is or might be the illegal
placement of insurance with an unauthorized insurer or the subsequent servicing of
an insurance policy illegally placed with an unauthorized insurer and standards for
imposing sanctions or remedial measures for a violation of the provision.
9. Current law requires that insurance claims be promptly paid and imposes
interest at the rate of 12% per year on overdue payments. Under current law, a claim
for payment for chiropractic services is overdue if not paid within 30 days after the
insurer receives clinical documentation that the services were provided. The bill
provides that this provision regarding when payment of a claim for chiropractic
services is overdue does not apply to worker's compensation insurance or any line of
property and casualty insurance except disability insurance, which specifically does
not include uninsured or underinsured motorist coverage or medical payment
coverage.
10. The bill eliminates a requirement that premium taxes collected by an agent
or broker or by an insurer in trust for the state must be kept in a separate account.
11. Under current law, the definition of "extraordinary dividend," with respect
to a distribution of cash or other property by an insurer, contains an error in the
formula in that it requires calculation of a life insurer's net gain from operations,
which applies to certain kinds of insurance other than life insurance. The bill

corrects the formula by substituting "net income" for "net gain from operations," with
respect to a life insurer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB375, s. 1 1Section 1. 227.21 (2) (a) of the statutes is amended to read:
SB375,4,72 227.21 (2) (a) To Except as provided in s. 601.41 (3) (b), to avoid unnecessary
3expense, an agency may, with the consent of the revisor and the attorney general,
4adopt standards established by technical societies and organizations of recognized
5national standing by incorporating the standards in its rules by reference to the
6specific issue or issues of the publication in which they appear, without reproducing
7the standards in full.
SB375, s. 2 8Section 2. 227.21 (2) (b) of the statutes is amended to read:
SB375,4,149 227.21 (2) (b) The revisor and the attorney general shall consent to
10incorporation by reference only in a rule of limited public interest and in a case where
11the incorporated standards are readily available in published form. Each rule
12containing an incorporation by reference shall state how the material incorporated
13may be obtained and, except as provided in s. 601.41 (3) (b), that the standards are
14on file at the offices of the agency, the secretary of state, and the revisor.
SB375, s. 3 15Section 3. 600.03 (19) (b) 1. of the statutes is amended to read:
SB375,4,1816 600.03 (19) (b) 1. With respect to a life insurer, the total net gain from
17operations
income of the insurer for the calendar year preceding the date of the
18dividend or distribution, minus realized capital gains for that calendar year.
SB375, s. 4 19Section 4. 601.41 (3) of the statutes is renumbered 601.41 (3) (a).
SB375, s. 5 20Section 5. 601.41 (3) (b) of the statutes is created to read:
SB375,5,10
1601.41 (3) (b) The commissioner may, without the consent of the revisor or the
2attorney general as required under s. 227.21 (2), adopt standards of the National
3Association of Insurance Commissioners by incorporating by reference in rules
4promulgated by the commissioner any materials published, adopted, or approved by
5the National Association of Insurance Commissioners, without reproducing the
6standards in full. Any materials of the National Association of Insurance
7Commissioners that are incorporated by reference in rules promulgated by the
8commissioner shall be obtainable from, and are only required to be kept on file at,
9the office, which shall be stated in any rule containing such an incorporation by
10reference.
SB375, s. 6 11Section 6. 604.04 (8) of the statutes is created to read:
SB375,5,1512 604.04 (8) Nondisclosure of personal information. The manager may refuse
13to disclose, and may prevent any other person from disclosing, any personally
14identifiable information, as defined in s. 19.62 (5), that is obtained by the manager
15in the course of administering a fund under chs. 605 to 607.
SB375, s. 7 16Section 7. 612.33 (2) (a) of the statutes is amended to read:
SB375,5,2417 612.33 (2) (a) Windstorm and hail insurance. If a town mutual provides
18coverage against windstorm or hail, or other perils involving a similar potential for
19catastrophic losses, which are designated by the commissioner by rule, it shall obtain
20reinsurance for each such risk or else stop-loss reinsurance with an insurer
21authorized to do such business in this state, to an extent reasonably adequate to
22cover the risk of catastrophic losses
or in an amount specified by the commissioner
23by rule
. The commissioner may prescribe detailed requirements for such
24reinsurance by rule or by order.
SB375, s. 8 25Section 8. 612.33 (2) (b) of the statutes is amended to read:
SB375,6,8
1612.33 (2) (b) Nonproperty insurance. To the extent that a town mutual
2provides insurance under s. 612.31 (3), it shall obtain reinsurance of at least a 90%
3proportional share of each risk with an insurer authorized to do such business in this
4state. The commissioner may permit a town mutual to retain a larger percentage if
5he or she finds that the interests of the members will not be endangered thereby, or
6may require it to reinsure a larger percentage if he or she finds that the interests of
7the members make it advisable. The commissioner may by rule require other
8reinsurance.
SB375, s. 9 9Section 9. 618.39 (3) of the statutes is created to read:
SB375,6,1110 618.39 (3) Standards by rule. (a) The office may by rule promulgate standards
11for any of the following:
SB375,6,1512 1. Establishing that a person should know that the result of insurance business
13is or might be the illegal placement of insurance with an unauthorized insurer or the
14subsequent servicing of an insurance policy illegally placed with an unauthorized
15insurer.
SB375,6,1816 2. Imposing requirements under s. 601.42 or 628.04 or sanctions or remedial
17measures under sub. (2) or s. 601.64, or any other applicable penalty or remedial
18provision of chs. 600 to 646, for a violation of this section.
SB375,6,2019 (b) Notwithstanding par. (a) 1., it is not necessary for the office to promulgate
20a rule under par. (a) 1. to establish that a person violated sub. (1).
SB375, s. 10 21Section 10. 618.43 (7) of the statutes is amended to read:
SB375,6,2522 618.43 (7) Taxes as trust funds. All premium taxes collected under this section
23by an agent or broker or by an insurer are the property of this state . They shall be
24kept in a separate account and may not be commingled with funds belonging to
25anyone else
, to be held in trust for the state.
SB375, s. 11
1Section 11. 628.09 (1) of the statutes is amended to read:
SB375,7,102 628.09 (1) Issuance of license. Except as provided in s. 628.095 or 628.097,
3the commissioner may issue a temporary license as an intermediary for a period of
4not more than 3 12 months to the personal representative of a deceased or mentally
5disabled intermediary, or to a person designated by an intermediary who is otherwise
6disabled or has entered active duty in the U.S. armed forces, in order to give time for
7more favorable sale of the goodwill of a business owned by the intermediary, for the
8recovery or return of the intermediary, or for the orderly training and licensing of new
9personnel for the intermediary's business. This subsection does not apply to life
10insurance agents.
SB375, s. 12 11Section 12. 628.09 (4) of the statutes is amended to read:
SB375,7,1812 628.09 (4) Duration of license. The commissioner may by order revoke a
13temporary license if the interests of insureds or the public are endangered. Except
14as provided in s. 628.097, a
A temporary license may not be extended beyond the
15initial period specified under sub. (1), for additional periods of not more than 3
16months each, with the total period not to exceed 12 months in the aggregate
. A
17temporary license may not continue after the owner or the personal representative
18disposes of the business.
SB375, s. 13 19Section 13. 628.09 (5) of the statutes is amended to read:
SB375,7,2320 628.09 (5) Fees. The fees for a temporary license are the same as for a
21permanent license. No additional fee may be charged for extensions under sub. (4),
22nor for the issuance of a subsequent license under s. 628.04 if that license is issued
23while the temporary license remains in effect.
SB375, s. 14 24Section 14. 628.097 (title) of the statutes is amended to read:
SB375,8,2
1628.097 (title) Refusal to issue license; failure to pay support or to
2comply with subpoena or warrant; tax delinquency.
SB375, s. 15 3Section 15. 628.097 (1) (title) of the statutes is repealed.
SB375, s. 16 4Section 16. 628.097 (1) (a) of the statutes is renumbered 628.097 (1m).
SB375, s. 17 5Section 17. 628.097 (1) (b) of the statutes is renumbered 628.097 (2m).
SB375, s. 18 6Section 18. 628.097 (2) of the statutes is repealed.
SB375, s. 19 7Section 19. 628.46 (2m) of the statutes, as created by 2001 Wisconsin Act 16,
8is renumbered 628.46 (2m) (a) and amended to read:
SB375,8,139 628.46 (2m) (a) Notwithstanding subs. (1) and (2) and except as provided in
10par. (b)
, a claim for payment for chiropractic services is overdue if not paid within 30
11days after the insurer receives clinical documentation from the chiropractor that the
12services were provided unless, within those 30 days, the insurer provides to the
13insured and to the chiropractor the written statement under s. 632.875 (2).
SB375, s. 20 14Section 20. 628.46 (2m) (b) of the statutes is created to read:
SB375,8,1515 628.46 (2m) (b) Paragraph (a) does not apply to any of the following:
SB375,8,1616 1. Worker's compensation insurance.
SB375,8,1917 2. Any line of property and casualty insurance except disability insurance. In
18this subdivision, "disability insurance" does not include uninsured motorist
19coverage, underinsured motorist coverage, or medical payment coverage.
SB375, s. 21 20Section 21. 632.05 (2) of the statutes is amended to read:
SB375,8,2521 632.05 (2) Whenever any policy insures real property which that is owned and
22occupied by the insured primarily as a dwelling and the property is wholly destroyed,
23without criminal fault on the part of the insured or the insured's assigns, the amount
24of the loss shall be taken conclusively to be the policy limits of the policy insuring the
25property.
SB375, s. 22
1Section 22. 632.68 (2) (e) of the statutes is amended to read:
SB375,9,122 632.68 (2) (e) Except as provided in sub. (3), a license issued under this
3subsection shall be renewed annually on the anniversary date July 1 upon payment
4of the fee specified in s. 601.31 (1) (mp) and upon providing the licensee's social
5security number, unless the licensee does not have a social security number, or
6federal employer identification number, as applicable, if not previously provided on
7the application for the license or at a previous renewal of the license. If the licensee
8is a natural person who does not have a social security number, the license shall be
9renewed annually on the anniversary date July 1 upon payment of the fee specified
10in s. 601.31 (1) (mp) and upon providing to the commissioner a statement made or
11subscribed under oath or affirmation, on a form prescribed by the department of
12workforce development, that the licensee does not have a social security number.
SB375, s. 23 13Section 23. 632.68 (4) (c) of the statutes is amended to read:
SB375,9,2514 632.68 (4) (c) Except as provided in sub. (5), a license issued under this
15subsection shall be renewed annually on the anniversary date July 1 upon payment
16of the fee specified in s. 601.31 (1) (ms) and upon providing the licensee's social
17security number, unless the licensee does not have a social security number, or
18federal employer identification number, as applicable, if not previously provided on
19the application for the license or at a previous renewal of the license. If the licensee
20is a natural person who does not have a social security number, the license shall be
21renewed annually, except as provided in sub. (5), on the anniversary date July 1 upon
22payment of the fee specified in s. 601.31 (1) (ms) and upon providing to the
23commissioner a statement made or subscribed under oath or affirmation, on a form
24prescribed by the department of workforce development, that the licensee does not
25have a social security number.
SB375, s. 24
1Section 24. 655.27 (5) (a) 1. of the statutes is amended to read:
SB375,10,102 655.27 (5) (a) 1. Any person may file a claim for damages arising out of the
3rendering of medical care or services or participation in peer review activities under
4s. 146.37 within this state against a health care provider or an employee of a health
5care provider. A person filing a claim may recover from the fund only if the health
6care provider or the employee of the health care provider has coverage under the fund
7and, the fund is named as a party in the action, and the action against the fund is
8commenced within the time limitation under s. 893.55 within which the action
9against the health care provider or employee of the health care provider must be
10commenced
.
SB375, s. 25 11Section 25. 655.27 (5) (a) 2. of the statutes is amended to read:
SB375,11,212 655.27 (5) (a) 2. Any person may file an action for damages arising out of the
13rendering of medical care or services or participation in peer review activities under
14s. 146.37 outside this state against a health care provider or an employee of a health
15care provider. A person filing an action may recover from the fund only if the health
16care provider or the employee of the health care provider has coverage under the fund
17and, the fund is named as a party in the action, and the action against the fund is
18commenced within the time limitation under s. 893.55 within which the action
19against the health care provider or employee of the health care provider must be
20commenced
. If the rules of procedure of the jurisdiction in which the action is brought
21do not permit naming the fund as a party, the person filing the action may recover
22from the fund only if the health care provider or the employee of the health care
23provider has coverage under the fund and the fund is notified of the action within 60
24days of service of process on the health care provider or the employee of the health
25care provider. The board of governors may extend this time limit if it finds that

1enforcement of the time limit would be prejudicial to the purposes of the fund and
2would benefit neither insureds nor claimants.
SB375, s. 26 3Section 26. Initial applicability.
SB375,11,64 (1) Renewal of viatical settlement provider and broker licenses. The
5treatment of section 632.68 (2) (e) and (4) (c) of the statutes first applies to licenses
6renewed in 2002.
SB375,11,97 (2) Issuance of temporary intermediary licenses. The treatment of sections
8628.09 (1), (4), and (5) and 628.097 (title), (1) (title), (a), and (b), and (2) of the statutes
9first applies to temporary licenses issued on the effective date of this subsection.
SB375,11,1210 (3) Patients compensation fund statute of limitations. The treatment of
11section 655.27 (5) (a) 1. and 2. of the statutes first applies to claims arising out of
12injuries occurring on the effective date of this subsection.
SB375,11,1313 (End)
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