SB582,17,84 (b) If an insurer that is a member of an insurance holding company system does
5not qualify for exemption under sub. (1) (a), but the insurance holding company
6system of which the insurer is a member qualifies for exemption under sub. (1) (b),
7the only summary report that is required under s. 622.09 is the summary report
8applicable to that insurer.
SB582,17,19 9(3) Waiver. An insurer that does not qualify for exemption under sub. (1) may
10apply to the commissioner for a waiver from the requirements of this chapter. In
11determining whether to grant the waiver, the commissioner may consider the type
12and volume of business written by the insurer, the ownership and organizational
13structure of the insurer, and any other factor the commissioner considers relevant
14to the insurer or insurance holding company system of which the insurer is a
15member. If the insurer is part of an insurance holding company system that includes
16insurers domiciled in more than one state, the commissioner shall coordinate with
17the commissioner of the lead state and with the commissioners of each of the other
18states in which insurer members of the insurance holding company system are
19domiciled in determining whether to grant the insurer's request for a waiver.
SB582,17,23 20(4) Withdrawal of exemption or waiver. Notwithstanding subs. (1) and (3), the
21commissioner may issue an order requiring an insurer to create and maintain a risk
22management framework, conduct an own risk and solvency assessment, and file a
23summary report if either of the following applies:
SB582,18,524 (a) The commissioner finds that the insurer's unique circumstances, including
25the type and volume of business written, the ownership and organizational

1structure, federal agency requests, or international supervisor requests, warrant
2withdrawal of the exemption or waiver. If the commissioner withdraws the
3exemption or waiver, the insurer or the insurance holding company system is subject
4to the requirement under s. 622.09 until the commissioner reinstates the exemption
5under sub. (1) or the waiver under sub. (3).
SB582,18,106 (b) The insurer has a risk-based capital company action level event, as defined
7in s. Ins 51.01 (4), Wis. Adm. Code, meets one or more of the standards for an insurer
8in hazardous financial condition as described in s. 623.11, 645.31, or 645.41, or
9otherwise exhibits qualities of a troubled insurer as determined by the
10commissioner.
SB582,18,16 11(5) Compliance after loss of exemption. If an insurer no longer qualifies for
12an exemption under sub. (1) due to increased premium, as reflected in the insurer's
13most recent annual statement or in the most recent annual statements of the
14insurers within the insurance holding company system of which the insurer is a
15member, the insurer shall have one year following the year in which the premium
16threshold is exceeded to comply with the requirements of this chapter.
SB582,18,20 17622.13 Contents of summary report. (1) Preparation. The summary report
18shall be prepared consistently with the guidance manual. Documentation and
19supporting information shall be maintained and made available upon examination
20or upon request of the commissioner.
SB582,18,24 21(2) Review. The commissioner's review of the summary report, and any
22additional requests for information, shall be made using similar procedures used in
23the analysis and examination of multistate or global insurers and insurance holding
24company systems.
SB582,19,10
1622.15 Confidentiality. (1) Confidential treatment. Documents, materials,
2or other information, including summary reports, in the possession or control of the
3commissioner that are obtained by, created by, or disclosed to the commissioner or
4any other person under this chapter, are confidential and privileged, are not subject
5to inspection or copying under s. 19.35 (1), are not subject to subpoena, and are not
6subject to discovery or admissible in evidence in any private civil action. The
7commissioner is authorized to use the documents, materials, or other information in
8the commissioner's regulation of the insurer or insurance holding company system
9but may not make the documents, materials, or other information public without the
10prior written consent of the insurer.
SB582,19,16 11(2) Prohibition on testimony. Neither the commissioner nor any person who
12received documents, materials, or other information related to own risk and solvency
13assessments, through examination or otherwise, while acting under the authority of
14the commissioner or with whom such documents, materials, or other information are
15shared in accordance with this chapter, may testify in any private civil action
16concerning any confidential documents, materials, or information subject to sub. (1).
SB582,19,18 17(3) Permitted disclosures. In furtherance of the performance of the
18commissioner's regulatory duties, all of the following apply:
SB582,20,419 (a) The commissioner may, upon request, share documents, materials, or other
20information related to own risk and solvency assessments, including the confidential
21and privileged documents, materials, or information subject to sub. (1), including
22proprietary and trade secret documents and materials, with other state, federal, and
23international financial regulatory agencies, including members of any supervisory
24college as described in s. 617.215, with the National Association of Insurance
25Commissioners, and with any 3rd-party consultants designated by the

1commissioner, provided that the recipient agrees in writing to maintain the
2confidentiality and privileged status of the documents, materials, or other
3information required by this section related to own risk and solvency assessments
4and has verified in writing its legal authority to maintain confidentiality.
SB582,20,135 (b) The commissioner may receive documents, materials, or other information
6related to own risk and solvency assessments, including otherwise confidential and
7privileged documents, materials, or information, including proprietary and trade
8secret information or documents, from regulatory officials of other jurisdictions,
9including members of any supervisory college as described in the s. 617.215, and from
10the National Association of Insurance Commissioners, and shall maintain as
11confidential or privileged any document, material, or information received with
12notice or the understanding that it is confidential or privileged under the laws of the
13jurisdiction that is the source of the document, material, or information.
SB582,20,1814 (c) The commissioner shall enter into a written agreement with the National
15Association of Insurance Commissioners or any 3rd party consulted formally or
16informally by the commissioner governing the sharing and use of information
17provided under this chapter, consistent with this subsection, that does all of the
18following:
SB582,21,219 1. Specifies procedures and protocols regarding the confidentiality and security
20of information shared with the National Association of Insurance Commissioners or
213rd-party consultants in accordance with this chapter, including procedures and
22protocols for sharing by the National Association of Insurance Commissioners with
23other state regulators from states in which the insurance holding company system
24has domiciled insurers. The agreement shall provide that the recipient agrees in
25writing to maintain the confidentiality and privileged status of the documents,

1materials, or other information related to own risk and solvency assessments and
2has verified in writing its legal authority to maintain confidentiality.
SB582,21,73 2. Specifies that ownership of information shared with the National
4Association of Insurance Commissioners or 3rd-party consultants in accordance
5with this chapter remains with the commissioner and that the use of the information
6by the National Association of Insurance Commissioners, regulatory officials, or
73rd-party consultants is subject to the direction of the commissioner.
SB582,21,138 3. Prohibits the National Association of Insurance Commissioners or a
93rd-party consultant from storing the information shared under this chapter in a
10permanent database after the underlying analysis is completed, and provides that
11the National Association of Insurance Commissioners or 3rd-party consultant will
12either destroy or return the information to the insurer within 2 years of completion
13of the underlying analysis.
SB582,21,1814 4. Requires prompt notice to be given to an insurer whose confidential
15information in the possession of the National Association of Insurance
16Commissioners or a 3rd-party consultant under this chapter is subject to a request
17or subpoena to the National Association of Insurance Commissioners or 3rd-party
18consultant for disclosure or production.
SB582,21,2419 5. Requires the National Association of Insurance Commissioners or a
203rd-party consultant to consent to intervention by an insurer in any judicial or
21administrative action in which the National Association of Insurance
22Commissioners or 3rd-party consultant may be required to disclose confidential
23information about the insurer shared with the National Association of Insurance
24Commissioners or 3rd-party consultant under this chapter.
SB582,22,3
16. In the case of an agreement involving a 3rd-party consultant, provides for
2the insurer's written consent before sharing any of the insurer's information with the
33rd-party consultant.
SB582,22,74 (d) The sharing of information and documents by the commissioner under this
5chapter does not constitute a delegation of regulatory authority or rule making, and
6the commissioner is solely responsible for the administration, execution, and
7enforcement of the provisions of this chapter.
SB582,22,138 (e) No waiver of any applicable privilege or claim of confidentiality in the
9documents, proprietary and trade secret materials, or other information related to
10own risk and solvency assessments obtained or developed under this chapter shall
11occur as a result of disclosure of such information or documents to the commissioner
12under this section or as a result of the commissioner sharing such information or
13documents as authorized in this section.
SB582,22,1814 (f) Documents, materials, or other information in the possession or control of
15the National Association of Insurance Commissioners or 3rd-party consultants
16under this chapter are confidential and privileged, are not subject to inspection or
17copying under s. 19.35 (1), are not subject to subpoena, and are not subject to
18discovery or admissible in evidence in any private civil action.
SB582,22,21 19622.17 Penalty. Notwithstanding s. 601.64 (1) and (4), an insurer that is
20subject to this chapter that fails, without just cause, to timely file the summary
21report required under s. 622.09 is subject to the penalties under s. 601.64 (2) and (3).
SB582,18 22Section 18. 644.10 (1) (a) of the statutes is amended to read:
SB582,22,2423 644.10 (1) (a) In the case of a domestic stock corporation, no grounds for
24disapproval exist under s. 611.72 (3) (am).
SB582,19 25Section 19. 644.10 (1) (b) of the statutes is amended to read:
SB582,23,10
1644.10 (1) (b) In the case of a domestic mutual, no grounds for disapproval exist
2under s. 611.73 (3) (a) and the domestic mutual has complied with s. 644.07 (2) to (8).
3The converting insurance company and any domestic mutual that the converting
4insurance company proposes to acquire, or merge or consolidate with, may adopt one
5plan. The commissioner may combine the hearings required under s. 644.07 (6) for
6the converting insurance company and any domestic mutual that is the subject of the
7acquisition by, or merger or consolidation with, the converting insurance company.
8Section 644.07 (9), (10) (b) to (f), and (11) applies to a domestic mutual acquired by,
9merged into, or consolidated with a converting insurance company under this
10section.
SB582,20 11Section 20. Effective dates. This act takes effect on the day after publication,
12except as follows:
SB582,23,1313 (1) The treatment of chapter 622 of the statutes takes effect on January 1, 2015.
SB582,23,1414 (End)
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