AB688: Bill Text

AB688,12,6 646.12 (1) (b) Chairperson. The person to chair the board shall be elected by the members of the board under a rule promulgated by the commissioner annually at the first meeting after June 1.

AB688, s. 30 Section 30. 646.12 (2) (a) of the statutes is amended to read:

AB688,12,10 646.12 (2) (a) Subject to the commissioner's power to promulgate rules under sub. (1), adopt Adopt rules for the administration of this chapter, including delegation of any part of its powers and its own procedures.

AB688, s. 31 Section 31. 646.13 (3) (d) of the statutes is created to read:

AB688,12,16 646.13 (3) (d) Except for claims under life insurance policies, annuities, or noncancelable or guaranteed renewable disability insurance policies, and except for claims determined to be excused late filings as provided in pars. (a) and (b), if no date for filing is set by the liquidator or court, with a liquidator or court after 18 months after the order of liquidation is entered.

AB688, s. 32 Section 32. 646.31 (11) of the statutes is renumbered 646.31 (11) (b) and amended to read:

AB688,13,2 646.31 (11) (b) The An insurance entity may not assert a claim against the fund is not required to pay for any amount due from the insurer to any reinsurer, insurer, insurance pool or underwriting association the insurance entity as subrogation, contribution, or indemnification recoveries or otherwise, except as provided in sub. (2) (a). A reinsurer, insurer, insurance pool or underwriting association An insurance entity that has paid a claim and thereby has become subrogated or otherwise entitled to the amount of that claim may assert that claim against the liquidator of the insurer in liquidation but not against the insured of the insurer in liquidation.

AB688, s. 33 Section 33. 646.31 (11) (a) of the statutes is created to read:

AB688,13,4 646.31 (11) (a) In this subsection:

AB688,13,5 1. "Health care costs" has the meaning given in s. 609.01 (1j).

AB688,13,7 2. "Insurance entity" means a reinsurer, an insurer, an insurance pool, or an underwriting association.

AB688, s. 34 Section 34. 646.31 (11) (c) of the statutes is created to read:

AB688,13,10 646.31 (11) (c) Notwithstanding par. (b), an insurance entity may assert a claim against the fund for health care costs if all of the following conditions are met:

AB688,13,12 1. The insurance entity paid the claim for health care costs under a disability insurance policy issued by the insurance entity.

AB688,13,15 2. The insurance entity is not obligated to pay the health care costs under the express terms of the disability insurance policy because the claim arose out of, or in the course of, the claimant's employment.

AB688,13,17 3. The claim is covered by a worker's compensation insurance policy and would otherwise be an eligible claim under this section.

AB688, s. 35 Section 35. 646.33 (3) of the statutes is renumbered 646.33 (3) (a).

AB688, s. 36 Section 36. 646.35 (4) (a) of the statutes is renumbered 646.35 (4).

AB688, s. 37 Section 37. 646.35 (4) (b) of the statutes is renumbered 646.33 (3) (b).

AB688, s. 38 Section 38. 646.35 (6) (c) 1. (intro.) and b. of the statutes are consolidated, renumbered 646.35 (6) (c) 1. and amended to read:

AB688,14,5 646.35 (6) (c) 1. Any benefit payment liability, arising on or after the date of entry of the order of liquidation, to the extent that the rate of interest on which it is based or the interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract and employed in calculating returns or changes in value exceeds the smaller of the following: b. The rate of interest, which may not be less than zero, determined by subtracting 3 percentage points from the monthly corporate bond yield average, as most recently published by Moody's investors service or its successor.

AB688, s. 39 Section 39. 646.35 (6) (c) 1. a. of the statutes is repealed.

AB688, s. 40 Section 40. 646.35 (6) (c) 2. (intro.) and b. of the statutes are consolidated, renumbered 646.35 (6) (c) 2. and amended to read:

AB688,14,15 646.35 (6) (c) 2. Any benefit payment liability, arising before the date of entry of the order of liquidation, to the extent that the payment exceeds the smaller of the following: b. The rate of interest, which may not be less than zero, determined by subtracting 2 percentage points from the monthly corporate bond yield average, as published by Moody's investors service or its successor, when averaged over the 4-year period ending on the date of entry of the order of liquidation or averaged over such lesser period if the contract was issued less than 4 years before that date.

AB688, s. 41 Section 41. 646.35 (6) (c) 2. a. of the statutes is repealed.

AB688, s. 42 Section 42. 646.51 (3) (am) (intro.) of the statutes is amended to read:

AB688,14,19 646.51 (3) (am) General. (intro.) Except as provided in par. pars. (b) and (c), assessments shall be calculated as follows:

AB688, s. 43 Section 43. 646.51 (3) (b) of the statutes is created to read:

AB688,15,2 646.51 (3) (b) Life and health. Except as provided in par. (c), with respect to annuity contracts or life or disability insurance policies, including policies issued by health maintenance organizations, assessments shall be calculated as a percentage of average annual premium received in this state by each insurer in the classes protected by the accounts for the 3 most recent years preceding the year of the entry of the order of liquidation.

AB688, s. 44 Section 44. 646.51 (4) (a) of the statutes is amended to read:

AB688,15,9 646.51 (4) (a) Subject to pars. (b) and (d), the total of all assessments for an amount authorized by the board under this section with respect to an insurer may not, in one calendar year, exceed 2% 2 percent of the insurer's average annual assessable premiums received in this state, during the 3 calendar years preceding the year of entry of the order of liquidation, under sub. (3) (am) or (b) on the types of policies and contracts that are covered by the account.

AB688, s. 45 Section 45. 2003 Wisconsin Act 261, section 162 (1) is amended to read:

AB688,15,11 [2003 Wisconsin Act 261] Section 162 (1) Insurance security fund.

AB688,16,4 (a) The treatment of sections 609.98 (1) and (4) (a) and (b), 645.58 (1) (intro.), 646.01 (1) (a) 2. k. and L. and (b) 1., 9. (intro.), a., b., c., and d., 11., 11m., 15., 16., and 17., and 18., 646.03 (1m), (2n), (2p), (4), and (5), 646.12 (2) (d) and (f) 2. and 3. and (4), 646.13 (title), (1) (intro.) and (b), (2) (intro.), (b), (c), (d), and (g), (3) (intro.), (a), (b), and (c) (intro.) and 2., and (4), 646.15 (title) and (1) (a) (intro.), 1., 2., and 4., 646.16, 646.21 (2), 646.31 (1) (d) 10. and 11., (2) (a) 1. and 2., (b) 1., 2. (intro.), a., and b., and 3., (f) (title) and 2., and (g), (3), (5), (6) (a) and (b), (7), (8), (9) (a), (b), (c), (cm), and (d), and (11), 646.32 (1), 646.325 (1) and (2) (intro.), (a) (intro.), and (b), 646.33 (2), (2m) (b), and (3), 646.35 (2), (3) (title), (intro.) (except 646.35 (3) (title)), (a), (b), and (c), (5), (6) (a), (b), (bm), and (c) (intro.), 1. (intro.) and b., and 2. (intro.) and b., (7), (8), (9), and (10), 646.51 (1), (1c), (2), (3) (a) (title), 1., and 2., (am) 2., (b), and (c), (5), (6), (7) (a), (8), and (9) (b) 1. and 2., 646.60 (1) (a), 646.61 (2), and 646.73 of the statutes, the renumbering and amendment of sections 646.11 (1), 646.31 (10) and (13), 646.33 (1), 646.35 (4), and 646.51 (4) of the statutes, and the creation of sections 646.11 (1) (d) and (e), 646.31 (10) (b) and (13) (b), (c), and (d), 646.33 (1) (b), (c), and (d), 646.35 (4) (b), and 646.51 (4) (a), (b), and (d) of the statutes first apply to insurance company liquidations commenced or pending on the effective date of this paragraph.

AB688,16,7 (b) The treatment of section 646.01 (1) (b) 18. of the statutes first applies to liquidation proceedings in which a liquidation order is issued on the effective date of this subsection paragraph.

AB688, s. 46 Section 46. Nonstatutory provisions.

AB688,16,13 (1) Board of directors of insurance security fund. Notwithstanding section 646.12 (1) (a) of the statutes, as affected by this act, each insurer representative member of the board of directors of the insurance security fund who is serving on the effective date of this subsection shall continue in that capacity until he or she resigns or his or her term expires, whichever occurs first.

AB688,16,16 (2) Coverage of employers and plan sponsors. The treatment of section 600.03 (25) (a) 4. of the statutes, as created by this act, applies to coverage of employers and plan sponsors issued prior to, on, or after the effective date of this subsection.

AB688, s. 47 Section 47 . Initial applicability.

AB688,16,23 (1) Insurance security fund. The treatment of sections 646.13 (3) (d), 646.33 (3), 646.35 (4) (a) and (b) and (6) (c) 1. (intro.), a., and b. and 2. (intro.), a., and b., and 646.51 (3) (am) (intro.) and (b) and (4) (a) of the statutes, the renumbering and amendment of section 646.31 (11) of the statutes, and the creation of section 646.31 (11) (a) and (c) of the statutes first apply to insurance company liquidations commenced or pending on the effective date of this subsection.

AB688,17,3 (2) Restriction on property insurance. The treatment of section 632.07 of the statutes first applies to property insurance coverage required by a lender on the effective date of this subsection.

AB688,17,6 (3) Action to recover fees, taxes, and assessments. The treatment of section 76.68 (2) and (4) of the statutes first applies to fees, taxes, and assessments that are due and payable on the effective date of this subsection.

AB688,17,7 (End)