AB604: Bill Text

AB604,9,17 618.43 (1) (a) (intro.) Except as provided in Subject to par. (b) (bc), insurers, agents, brokers, and policyholders are liable, as provided in sub. (2), for a premium tax of 3% 3 percent of gross premiums charged for insurance, excluding annuities, if any of the following are is satisfied:

AB604, s. 11 Section 11. 618.43 (1) (a) 3. of the statutes is amended to read:

AB604,9,21 618.43 (1) (a) 3. The insurance is transacted by an unauthorized insurer for a risk purchasing group for coverage of risks which reside or are otherwise located in this state.

AB604, s. 12 Section 12. 618.43 (1) (b) of the statutes is repealed.

AB604, s. 13 Section 13. 618.43 (1) (bc) of the statutes is created to read:

AB604,9,25 618.43 (1) (bc) Notwithstanding any other provision of this section, with respect to premiums charged on policies issued or renewed on or after July 21, 2011, for insurance to which par. (a) applies, the tax under par. (a) is required only if the home state of the insured is this state, and it shall be levied on the entire gross premium charged, including premium attributable to those portions of the risk located outside of this state.

AB604, s. 14 Section 14. 618.43 (1) (d) of the statutes is amended to read:

AB604,10,9 618.43 (1) (d) Any insurance business transacted in violation of the law is subject to a premium tax of 5% 5 percent of gross premiums charged for the insurance, except that for ocean marine insurance the tax is 2% of gross premiums charged for the insurance.

AB604, s. 15 Section 15. 618.43 (6) of the statutes is amended to read:

AB604,10,17 618.43 (6) Allocation of tax. If With respect to gross premiums charged on policies issued or renewed before July 21, 2011, if a policy covers risks that are only partially located in this state, the premium shall be reasonably allocated among the states on the basis of risk locations in computing the tax, except that all premiums received in this state or charged on policies written or negotiated in this state shall be taxable in full under this section, with a credit for any tax actually paid in another state to the extent of a reasonable allocation on the basis of risk locations.

AB604, s. 16 Section 16. 628.03 (1) of the statutes is amended to read:

AB604,10,25 628.03 (1) General. No natural person may perform, offer to perform, or advertise any service as an intermediary in this state, unless the natural person obtains a license under s. 628.04 or 628.09, and no person may utilize the services of another as an intermediary if the person knows or should know that the other does not have a license as required by law. The licensing requirements of this subsection do not apply to a person who solely procures unauthorized insurance, as defined in s. 618.40 (11), that is not surplus lines insurance, as defined in s. 618.40 (10).

AB604, s. 17 Section 17. 628.05 (1) of the statutes is amended to read:

AB604,11,5 628.05 (1) General exemption. Except as otherwise provided in sub. (2), or by rule promulgated by the commissioner, persons engaged in soliciting insurance exclusively for town mutuals are not subject to the licensing requirements of s. 628.03 (1).

AB604, s. 18 Section 18. 628.34 (1) (a) of the statutes is amended to read:

AB604,11,19 628.34 (1) (a) Conduct forbidden. No person who is or should be licensed under chs. 600 to 646, no employee or agent of any such person, no person whose primary interest is as a competitor of a person licensed under chs. 600 to 646, and no person on behalf of any of the foregoing persons may make or cause to be made any communication relating to an insurance contract, the insurance business, any insurer, or any intermediary which that contains false or misleading information, including information that is misleading because of incompleteness. Filing a report and, with intent to deceive a person examining it, making a false entry in a record or willfully refraining from making a proper entry, are "communications" within the meaning of this paragraph. No intermediary or insurer may use any business name, slogan, emblem, or related device that is misleading or likely to cause the intermediary or insurer to be mistaken for another insurer or intermediary already in business. No intermediary may provide a misleading certificate of insurance.

AB604, s. 19 Section 19. 631.01 (4m) of the statutes is amended to read:

AB604,11,24 631.01 (4m) Rustproofing warranties insurance. An insurer issuing a policy of insurance to cover a warranty, as defined in s. 100.205 (1) (g), shall comply with s. 632.18 and the policy shall be on a form approved by the commissioner under s. 631.20.

AB604, s. 20 Section 20. 631.20 (1) (a) of the statutes is amended to read:

AB604,12,7 631.20 (1) (a) No form subject to s. 631.01 (1), except as exempted under par. (c), sub. (1g), or s. 631.01 (2) to, (3), (4), or (5) or by rule under par. (b), may be used unless it has been filed with and approved by the commissioner and unless the insurer certifies that the form complies with chs. 600 to 655 and rules promulgated under chs. 600 to 655. It is deemed approved if it is not disapproved within 30 days after filing, or within a 30-day extension of that period ordered by the commissioner prior to the expiration of the first 30 days.

AB604, s. 21 Section 21. 631.20 (1) (c) 9. of the statutes is amended to read:

AB604,12,10 631.20 (1) (c) 9. A form subject to s. 618.41 (6m) for a policy of insurance to cover a warranty, as defined in s. 100.205 (1) (g).

AB604, s. 22 Section 22. 631.20 (1m) (a) (intro.) of the statutes is amended to read:

AB604,12,15 631.20 (1m) (a) (intro.) Except as exempted under sub. (1g) or s. 631.01 (2) to, (3), (4), or (5) or by a rule promulgated by the commissioner, an insurer may not, on or after August 1, 2008, use a form that is exempt from sub. (1) (a) under sub. (1) (c) unless the insurer does all of the following:

AB604, s. 23 Section 23. 631.20 (7) of the statutes is created to read:

AB604,12,20 631.20 (7) Surplus lines insurance. Except as provided in sub. (1) (c) 9. and s. 618.41 (6m), this section does not apply to a surplus lines insurance form issued under s. 618.41 before, on, or after the effective date of this subsection .... [LRB inserts date].

AB604, s. 24 Section 24. 631.85 of the statutes is amended to read:

AB604,13,5 631.85 Appraisal or arbitration. An insurance policy may contain provision provisions for independent appraisal and compulsory arbitration, subject to the provisions of s. 631.20. If an approved policy provides for application to a court of record for the appointment of a disinterested appraiser, arbitrator , or umpire, any court of record of this state except the court of appeals or the supreme court may be requested to make an appointment. Upon appropriate request, the court shall make the appointment promptly. This section does not apply to a surplus lines insurance form issued under s. 618.41 before, on, or after the effective date of this section .... [LRB inserts date].

AB604, s. 25 Section 25. 632.32 (2) (ab) of the statutes is created to read:

AB604,13,10 632.32 (2) (ab) "Commercial automobile liability policy" means a liability insurance policy that is intended principally to provide primary coverage for the insured's liability arising out of the ownership, maintenance, or use of a motor vehicle in the insured's business or other commercial activities.

AB604, s. 26 Section 26. 632.32 (2) (ac) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,13,21 632.32 (2) (ac) "Commercial liability policy" means any form of liability insurance policy, including a commercial or business package policy or a policy written on farm and agricultural operations, that is intended principally to provide primary coverage for the insured's general liability arising out of its business or other commercial activities, and that includes coverage for the insured's liability arising out of the ownership, maintenance, or use of a motor vehicle as only one component of the policy or as coverage that is only incidental to the principal purpose of the policy. "Commercial liability policy" does not include a worker's compensation policy or a commercial automobile liability policy.

AB604, s. 27 Section 27. 632.32 (4) (a) (intro.) of the statutes is amended to read:

AB604,14,3 632.32 (4) (a) (intro.) Except as provided in par. (d), every policy of insurance subject to this section that insures with respect to any owned motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall contain therein or supplemental thereto provisions for all of the following coverages:

AB604, s. 28 Section 28. 632.32 (4) (bc) of the statutes, as affected by 2011 Wisconsin Act 14, is amended to read:

AB604,14,9 632.32 (4) (bc) Notwithstanding par. (a) 2., the named insured may reject medical payments coverage. If the one named insured rejects the coverage, the coverage need not be provided in a subsequent renewal policy issued by the same insurer unless the a named insured under the policy requests it in writing.

AB604, s. 29 Section 29. 632.32 (4) (d) of the statutes, as affected by 2011 Wisconsin Act 14, is amended to read:

AB604,14,18 632.32 (4) (d) This subsection does not apply to a commercial liability policies policy if the coverage it provides for the insured's liability arising out of the maintenance or use of a motor vehicle is limited to coverage for motor vehicles that are not owned motor vehicles, or to an umbrella or excess liability policies policy. If a commercial liability policy or an umbrella or excess liability policy provides medical payments coverage or uninsured motorist coverage, however, the coverage must have limits of at least those specified in par. (a).

AB604, s. 30 Section 30. 632.32 (4m) (a) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,15,5 632.32 (4m) (a) Except as provided in par. (e), an insurer writing policies that insure with respect to a motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by a person arising out of the ownership, maintenance, or use of a motor vehicle shall provide to one named insured under each such insurance policy that goes into effect after November 1, 2011, that is written by the insurer and that does not include underinsured motorist coverage written notice of the availability of underinsured motorist coverage, including a brief description of the coverage. An insurer is required to provide the notice required under this paragraph only one time and in conjunction with the delivery of the policy.

AB604, s. 31 Section 31. 632.32 (4m) (e) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,15,14 632.32 (4m) (e) This subsection does not apply to a commercial liability policies policy if the coverage it provides for the insured's liability arising out of the maintenance or use of a motor vehicle is limited to coverage for motor vehicles that are not owned motor vehicles, or to an umbrella or excess liability policies policy. If a commercial liability policy or an umbrella or excess liability policy provides underinsured motorist coverage, however, the coverage must have limits of at least those specified in par. (d).

AB604, s. 32 Section 32. 646.01 (2) (b) of the statutes is amended to read:

AB604,15,18 646.01 (2) (b) To provide where appropriate for the continuation of protection under policies and supplemental supplementary contracts of life insurance, disability insurance and annuities.

AB604, s. 33 Section 33. 646.03 (4m) of the statutes is created to read:

AB604,15,24 646.03 (4m) "Retained asset account" means any mechanism in which the settlement of proceeds payable under a life insurance policy is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer, under a written supplementary contract not involving annuity benefits.

AB604, s. 34 Section 34. 646.31 (1) (intro.) of the statutes is amended to read:

AB604,16,4 646.31 (1) Conditions of eligibility. (intro.) A claim is not eligible for payment from the fund unless it is an unpaid claim for a loss insured under the policy or annuity, or an unpaid claim under a supplementary contract providing for a retained asset account, and all of the following conditions are met:

AB604, s. 35 Section 35. 646.31 (4) (a) of the statutes is renumbered 646.31 (4) (ap) and amended to read:

AB604,16,13 646.31 (4) (ap) Except in regard to worker's compensation insurance and except as provided in par. (b), the obligation of the fund on a single risk, loss, or life, regardless of the number of policies or contracts, may not exceed $300,000, regardless of the number of policies or contracts except that the aggregate liability of the fund for a single risk, loss, or life with respect to benefits for property insurance, liability insurance, and disability insurance, regardless of the number of those policies, may not exceed $500,000.

AB604, s. 36 Section 36. 646.31 (4) (ag) of the statutes is created to read:

AB604,16,21 646.31 (4) (ag) For purposes of this subsection, "disability insurance" means comprehensive health insurance policies and major medical health insurance policies. "Disability insurance" does not include hospital indemnity; loss of time; accidental benefits; limited or specified benefit or other ancillary coverages; disability income insurance coverage; long-term care insurance coverage; insurance coverage that is supplemental to another insurance policy or program, including Medicare supplement insurance; or similar types of policies.

AB604, s. 37 Section 37. 646.35 (1) (b) of the statutes is amended to read:

AB604,16,24 646.35 (1) (b) Life insurance and supplementary contracts providing for retained asset accounts.

AB604, s. 38 Section 38. 646.35 (6) (b) of the statutes is amended to read:

AB604,17,6 646.35 (6) (b) In the case of a disability insurance policy that is neither guaranteed renewable nor noncancelable, the fund is not obligated to continue the policy in force beyond the time required under s. 645.43 30 days after the date the order of liquidation is entered, or 30 days after the date established in the liquidation order of another state, but may continue the coverage under any disability insurance policy for up to 180 days after the date of the liquidation order.

AB604, s. 39 Section 39. Initial applicability.

AB604,17,11 (1) Ocean marine insurance tax rate. The treatment of sections 618.41 (9) (a) and 618.43 (1) (a) (intro.) (with respect to the tax rate exception for ocean marine insurance), (b), and (d) of the statutes first applies to surplus lines ocean marine insurance issued or renewed on the effective date of this subsection.

AB604, s. 40 Section 40. Effective dates. This act takes effect on the day after publication, except as follows:

AB604,17,16 (1) Auto insurance provisions. The treatment of section 632.32 (2) (ab) and (ac), (4) (a) (intro.), (bc), and (d), and (4m) (a) and (e) of the statutes takes effect on November 1, 2011, or on the day after publication, whichever is later.

AB604,17,17 (End)