AB604, s. 6 9Section 6. 618.41 (8) (c) of the statutes is amended to read:
AB604,7,1310 618.41 (8) (c) Financially sound. To be financially sound for purposes of par.
11(a) 1., an insurer must be able to satisfy standards comparable to those applied under
12the laws of this state to authorized insurers, unless this state is the insured's home
13state, in which case s. 618.416 applies
.
AB604, s. 7 14Section 7. 618.41 (9) (a) of the statutes is amended to read:
AB604,7,2515 618.41 (9) (a) Required information. Every new or renewal insurance policy
16procured and delivered under this section shall bear the name and address of the
17insurance agent or broker who procured it and, except for ocean marine insurance,
18shall have stamped or affixed upon it the following: "This insurance contract is with
19an insurer which has not obtained a certificate of authority to transact a regular
20insurance business in the state of Wisconsin, and is issued and delivered as a surplus
21line coverage pursuant to s. 618.41 of the Wisconsin Statutes. Section 618.43 (1),
22Wisconsin Statutes, requires payment by the policyholder of 3 percent tax on gross
23premium." Every ocean marine insurance policy shall have stamped or affixed upon
24it the above statement except that the tax shall be one-half of one percent on gross
25premium.
AB604, s. 8
1Section 8. 618.41 (12) of the statutes is created to read:
AB604,8,52 618.41 (12) Application when this state is not the insured's home state. The
3placement of insurance under this section is not subject to subs. (4), (7m), (8), (9), or
4(10) if this state is not the insured's home state and the placement complies with the
5laws of the insured's home state.
AB604, s. 9 6Section 9. 618.416 of the statutes is created to read:
AB604,8,11 7618.416 Qualification for placement of surplus lines insurance with an
8unauthorized insurer.
An intermediary may not place surplus lines insurance
9under s. 618.41 with an unauthorized insurer if this state is the home state of the
10proposed insured, unless at the time of placement all of the following apply to the
11unauthorized insurer:
AB604,8,13 12(1) If the unauthorized insurer is domiciled in a United States jurisdiction, the
13insurer satisfies all of the following:
AB604,8,1514 (a) In its domiciliary jurisdiction, the unauthorized insurer is authorized to
15write the type of insurance to be placed with the insurer.
AB604,9,216 (b) Either the unauthorized insurer has capital and surplus or its equivalent
17under the laws of its domiciliary jurisdiction that equals the greater of either the
18minimum capital and surplus requirements under the laws of this state or
19$15,000,000 or the commissioner affirmatively finds that the unauthorized insurer's
20capital and surplus are acceptable. The commissioner's finding shall be based on
21factors that include quality of management, capital and surplus of any parent
22company, company underwriting profit and investment income trends, market
23availability, and company record and reputation within the industry. In no event
24may the commissioner find that the unauthorized insurer's capital and surplus are

1acceptable if the unauthorized insurer's capital and surplus are less than
2$4,500,000.
AB604,9,73 (c) The unauthorized insurer provides to the commissioner, no more than 6
4months after the close of the period reported on, a certified copy of its current annual
5statement that is filed and approved by the regulatory authority in the unauthorized
6insurer's domicile and certified by an accounting or auditing firm licensed in the
7jurisdiction of the unauthorized insurer's domicile.
AB604,9,12 8(2) If the unauthorized insurer is an alien insurer, the insurer is listed on the
9quarterly listing of alien insurers maintained by the international insurers
10department of the National Association of Insurance Commissioners and meets
11additional requirements regarding the use of the list established by rule of the
12commissioner.
AB604, s. 10 13Section 10. 618.43 (1) (a) (intro.) of the statutes is amended to read:
AB604,9,1714 618.43 (1) (a) (intro.) Except as provided in Subject to par. (b) (bc), insurers,
15agents, brokers, and policyholders are liable, as provided in sub. (2), for a premium
16tax of 3% 3 percent of gross premiums charged for insurance, excluding annuities,
17if any of the following are is satisfied:
AB604, s. 11 18Section 11. 618.43 (1) (a) 3. of the statutes is amended to read:
AB604,9,2119 618.43 (1) (a) 3. The insurance is transacted by an unauthorized insurer for a
20risk purchasing group for coverage of risks which reside or are otherwise located in
21this state
.
AB604, s. 12 22Section 12. 618.43 (1) (b) of the statutes is repealed.
AB604, s. 13 23Section 13. 618.43 (1) (bc) of the statutes is created to read:
AB604,9,2524 618.43 (1) (bc) Notwithstanding any other provision of this section, with
25respect to premiums charged on policies issued or renewed on or after July 21, 2011,

1for insurance to which par. (a) applies, the tax under par. (a) is required only if the
2home state of the insured is this state, and it shall be levied on the entire gross
3premium charged, including premium attributable to those portions of the risk
4located outside of this state.
AB604, s. 14 5Section 14. 618.43 (1) (d) of the statutes is amended to read:
AB604,10,96 618.43 (1) (d) Any insurance business transacted in violation of the law is
7subject to a premium tax of 5% 5 percent of gross premiums charged for the
8insurance, except that for ocean marine insurance the tax is 2% of gross premiums
9charged for the insurance
.
AB604, s. 15 10Section 15. 618.43 (6) of the statutes is amended to read:
AB604,10,1711 618.43 (6) Allocation of tax. If With respect to gross premiums charged on
12policies issued or renewed before July 21, 2011, if
a policy covers risks that are only
13partially located in this state, the premium shall be reasonably allocated among the
14states on the basis of risk locations in computing the tax, except that all premiums
15received in this state or charged on policies written or negotiated in this state shall
16be taxable in full under this section, with a credit for any tax actually paid in another
17state to the extent of a reasonable allocation on the basis of risk locations.
AB604, s. 16 18Section 16. 628.03 (1) of the statutes is amended to read:
AB604,10,2519 628.03 (1) General. No natural person may perform, offer to perform, or
20advertise any service as an intermediary in this state, unless the natural person
21obtains a license under s. 628.04 or 628.09, and no person may utilize the services
22of another as an intermediary if the person knows or should know that the other does
23not have a license as required by law. The licensing requirements of this subsection
24do not apply to a person who solely procures unauthorized insurance, as defined in
25s. 618.40 (11), that is not surplus lines insurance, as defined in s. 618.40 (10).
AB604, s. 17
1Section 17. 628.05 (1) of the statutes is amended to read:
AB604,11,52 628.05 (1) General exemption. Except as otherwise provided in sub. (2), or by
3rule promulgated by the commissioner, persons engaged in soliciting insurance
4exclusively for town mutuals are not subject to the licensing requirements of s.
5628.03 (1).
AB604, s. 18 6Section 18. 628.34 (1) (a) of the statutes is amended to read:
AB604,11,197 628.34 (1) (a) Conduct forbidden. No person who is or should be licensed under
8chs. 600 to 646, no employee or agent of any such person, no person whose primary
9interest is as a competitor of a person licensed under chs. 600 to 646, and no person
10on behalf of any of the foregoing persons may make or cause to be made any
11communication relating to an insurance contract, the insurance business, any
12insurer, or any intermediary which that contains false or misleading information,
13including information that is misleading because of incompleteness. Filing a report
14and, with intent to deceive a person examining it, making a false entry in a record
15or willfully refraining from making a proper entry, are "communications" within the
16meaning of this paragraph. No intermediary or insurer may use any business name,
17slogan, emblem, or related device that is misleading or likely to cause the
18intermediary or insurer to be mistaken for another insurer or intermediary already
19in business. No intermediary may provide a misleading certificate of insurance.
AB604, s. 19 20Section 19. 631.01 (4m) of the statutes is amended to read:
AB604,11,2421 631.01 (4m) Rustproofing warranties insurance. An insurer issuing a policy
22of insurance to cover a warranty, as defined in s. 100.205 (1) (g), shall comply with
23s. 632.18 and the policy shall be on a form approved by the commissioner under s.
24631.20
.
AB604, s. 20 25Section 20. 631.20 (1) (a) of the statutes is amended to read:
AB604,12,7
1631.20 (1) (a) No form subject to s. 631.01 (1), except as exempted under par.
2(c), sub. (1g), or s. 631.01 (2) to, (3), (4), or (5) or by rule under par. (b), may be used
3unless it has been filed with and approved by the commissioner and unless the
4insurer certifies that the form complies with chs. 600 to 655 and rules promulgated
5under chs. 600 to 655. It is deemed approved if it is not disapproved within 30 days
6after filing, or within a 30-day extension of that period ordered by the commissioner
7prior to the expiration of the first 30 days.
AB604, s. 21 8Section 21. 631.20 (1) (c) 9. of the statutes is amended to read:
AB604,12,109 631.20 (1) (c) 9. A form subject to s. 618.41 (6m) for a policy of insurance to cover
10a warranty, as defined in s. 100.205 (1) (g)
.
AB604, s. 22 11Section 22. 631.20 (1m) (a) (intro.) of the statutes is amended to read:
AB604,12,1512 631.20 (1m) (a) (intro.) Except as exempted under sub. (1g) or s. 631.01 (2) to,
13(3), (4), or
(5) or by a rule promulgated by the commissioner, an insurer may not, on
14or after August 1, 2008, use a form that is exempt from sub. (1) (a) under sub. (1) (c)
15unless the insurer does all of the following:
AB604, s. 23 16Section 23. 631.20 (7) of the statutes is created to read:
AB604,12,2017 631.20 (7) Surplus lines insurance. Except as provided in sub. (1) (c) 9. and
18s. 618.41 (6m), this section does not apply to a surplus lines insurance form issued
19under s. 618.41 before, on, or after the effective date of this subsection .... [LRB
20inserts date].
AB604, s. 24 21Section 24. 631.85 of the statutes is amended to read:
AB604,13,5 22631.85 Appraisal or arbitration. An insurance policy may contain provision
23provisions for independent appraisal and compulsory arbitration, subject to the
24provisions of s. 631.20. If an approved policy provides for application to a court of
25record for the appointment of a disinterested appraiser, arbitrator , or umpire, any

1court of record of this state except the court of appeals or the supreme court may be
2requested to make an appointment. Upon appropriate request, the court shall make
3the appointment promptly. This section does not apply to a surplus lines insurance
4form issued under s. 618.41 before, on, or after the effective date of this section ....
5[LRB inserts date].
AB604, s. 25 6Section 25. 632.32 (2) (ab) of the statutes is created to read:
AB604,13,107 632.32 (2) (ab) "Commercial automobile liability policy" means a liability
8insurance policy that is intended principally to provide primary coverage for the
9insured's liability arising out of the ownership, maintenance, or use of a motor
10vehicle in the insured's business or other commercial activities.
AB604, s. 26 11Section 26. 632.32 (2) (ac) of the statutes, as created by 2011 Wisconsin Act
1214
, is amended to read:
AB604,13,2113 632.32 (2) (ac) "Commercial liability policy" means any form of liability
14insurance policy, including a commercial or business package policy or a policy
15written on farm and agricultural operations, that is intended principally to provide
16primary coverage for the insured's general liability arising out of its business or other
17commercial activities, and that includes coverage for the insured's liability arising
18out of the ownership, maintenance, or use of a motor vehicle as only one component
19of the policy or as coverage that is only incidental to the principal purpose of the
20policy. "Commercial liability policy" does not include a worker's compensation policy
21or a commercial automobile liability policy.
AB604, s. 27 22Section 27. 632.32 (4) (a) (intro.) of the statutes is amended to read:
AB604,14,323 632.32 (4) (a) (intro.) Except as provided in par. (d), every policy of insurance
24subject to this section that insures with respect to any owned motor vehicle
25registered or principally garaged in this state against loss resulting from liability

1imposed by law for bodily injury or death suffered by any person arising out of the
2ownership, maintenance, or use of a motor vehicle shall contain therein or
3supplemental thereto provisions for all of the following coverages:
AB604, s. 28 4Section 28. 632.32 (4) (bc) of the statutes, as affected by 2011 Wisconsin Act
514
, is amended to read:
AB604,14,96 632.32 (4) (bc) Notwithstanding par. (a) 2., the named insured may reject
7medical payments coverage. If the one named insured rejects the coverage, the
8coverage need not be provided in a subsequent renewal policy issued by the same
9insurer unless the a named insured under the policy requests it in writing.
AB604, s. 29 10Section 29. 632.32 (4) (d) of the statutes, as affected by 2011 Wisconsin Act 14,
11is amended to read:
AB604,14,1812 632.32 (4) (d) This subsection does not apply to a commercial liability policies
13policy if the coverage it provides for the insured's liability arising out of the
14maintenance or use of a motor vehicle is limited to coverage for motor vehicles that
15are not owned motor vehicles,
or to an umbrella or excess liability policies policy. If
16a commercial liability policy or an umbrella or excess liability policy provides medical
17payments coverage or uninsured motorist coverage, however, the coverage must
18have limits of at least those specified in par. (a)
.
AB604, s. 30 19Section 30. 632.32 (4m) (a) of the statutes, as created by 2011 Wisconsin Act
2014
, is amended to read:
AB604,15,521 632.32 (4m) (a) Except as provided in par. (e), an insurer writing policies that
22insure with respect to a motor vehicle registered or principally garaged in this state
23against loss resulting from liability imposed by law for bodily injury or death suffered
24by a person arising out of the ownership, maintenance, or use of a motor vehicle shall
25provide to one named insured under each such insurance policy that goes into effect

1after November 1, 2011, that is written by the insurer and that does not include
2underinsured motorist coverage written notice of the availability of underinsured
3motorist coverage, including a brief description of the coverage. An insurer is
4required to provide the notice required under this paragraph only one time and in
5conjunction with the delivery of the policy.
AB604, s. 31 6Section 31. 632.32 (4m) (e) of the statutes, as created by 2011 Wisconsin Act
714
, is amended to read:
AB604,15,148 632.32 (4m) (e) This subsection does not apply to a commercial liability policies
9policy if the coverage it provides for the insured's liability arising out of the
10maintenance or use of a motor vehicle is limited to coverage for motor vehicles that
11are not owned motor vehicles,
or to an umbrella or excess liability policies policy. If
12a commercial liability policy or an umbrella or excess liability policy provides
13underinsured motorist coverage, however, the coverage must have limits of at least
14those specified in par. (d)
.
AB604, s. 32 15Section 32. 646.01 (2) (b) of the statutes is amended to read:
AB604,15,1816 646.01 (2) (b) To provide where appropriate for the continuation of protection
17under policies and supplemental supplementary contracts of life insurance,
18disability insurance and annuities.
AB604, s. 33 19Section 33. 646.03 (4m) of the statutes is created to read:
AB604,15,2420 646.03 (4m) "Retained asset account" means any mechanism in which the
21settlement of proceeds payable under a life insurance policy is accomplished by the
22insurer or an entity acting on behalf of the insurer depositing the proceeds into an
23account with check or draft writing privileges, where those proceeds are retained by
24the insurer, under a written supplementary contract not involving annuity benefits.
AB604, s. 34 25Section 34. 646.31 (1) (intro.) of the statutes is amended to read:
AB604,16,4
1646.31 (1) Conditions of eligibility. (intro.) A claim is not eligible for payment
2from the fund unless it is an unpaid claim for a loss insured under the policy or
3annuity, or an unpaid claim under a supplementary contract providing for a retained
4asset account,
and all of the following conditions are met:
AB604, s. 35 5Section 35. 646.31 (4) (a) of the statutes is renumbered 646.31 (4) (ap) and
6amended to read:
AB604,16,137 646.31 (4) (ap) Except in regard to worker's compensation insurance and
8except as provided in par. (b), the obligation of the fund on a single risk, loss, or life,
9regardless of the number of policies or contracts,
may not exceed $300,000,
10regardless of the number of policies or contracts except that the aggregate liability
11of the fund for a single risk, loss, or life with respect to benefits for property
12insurance, liability insurance, and disability insurance, regardless of the number of
13those policies, may not exceed $500,000
.
AB604, s. 36 14Section 36. 646.31 (4) (ag) of the statutes is created to read:
AB604,16,2115 646.31 (4) (ag) For purposes of this subsection, "disability insurance" means
16comprehensive health insurance policies and major medical health insurance
17policies. "Disability insurance" does not include hospital indemnity; loss of time;
18accidental benefits; limited or specified benefit or other ancillary coverages;
19disability income insurance coverage; long-term care insurance coverage; insurance
20coverage that is supplemental to another insurance policy or program, including
21Medicare supplement insurance; or similar types of policies.
AB604, s. 37 22Section 37. 646.35 (1) (b) of the statutes is amended to read:
AB604,16,2423 646.35 (1) (b) Life insurance and supplementary contracts providing for
24retained asset accounts
.
AB604, s. 38 25Section 38. 646.35 (6) (b) of the statutes is amended to read:
AB604,17,6
1646.35 (6) (b) In the case of a disability insurance policy that is neither
2guaranteed renewable nor noncancelable, the fund is not obligated to continue the
3policy in force beyond the time required under s. 645.43 30 days after the date the
4order of liquidation is entered,
or 30 days after the date established in the liquidation
5order of another state, but may continue the coverage under any disability insurance
6policy for up to 180 days after the date of the liquidation order.
AB604, s. 39 7Section 39. Initial applicability.
AB604,17,118 (1) Ocean marine insurance tax rate. The treatment of sections 618.41 (9) (a)
9and 618.43 (1) (a) (intro.) (with respect to the tax rate exception for ocean marine
10insurance), (b), and (d) of the statutes first applies to surplus lines ocean marine
11insurance issued or renewed on the effective date of this subsection.
AB604, s. 40 12Section 40. Effective dates. This act takes effect on the day after publication,
13except as follows:
AB604,17,1614 (1) Auto insurance provisions. The treatment of section 632.32 (2) (ab) and
15(ac), (4) (a) (intro.), (bc), and (d), and (4m) (a) and (e) of the statutes takes effect on
16November 1, 2011, or on the day after publication, whichever is later.
AB604,17,1717 (End)
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