LRB-3915/1
TJD:emw
2015 - 2016 LEGISLATURE
January 8, 2016 - Introduced by Senators Lasee, Olsen, Roth, Harris Dodd and
Bewley, cosponsored by Representative Petersen. Referred to Committee on
Insurance, Housing, and Trade.
SB537,1,2 1An Act to amend 645.675 (2) (a) (intro.) of the statutes; relating to: rights under
2certain agreements or qualified financial contracts.
Analysis by the Legislative Reference Bureau
This bill prohibits the staying or prevention of a person from exercising certain
rights related to certain agreements and qualified financial contracts. After the
appointment of a receiver in a rehabilitation or liquidation action against an insurer,
current law prohibits the staying or prohibition from exercising certain rights under
a qualified financial contract unless the person is notified that the contract has been
sold or transferred under certain circumstances. The bill maintains that no person
may be stayed or prohibited from exercising those specified rights but eliminates the
specification on the time period and the exception for notification that the contract
has been sold or transferred. The bill specifies that the prohibition on staying or
preventing the exercise of those rights takes precedence over other rehabilitation
and liquidation provisions in the statutes.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB537,1 3Section 1. 645.675 (2) (a) (intro.) of the statutes, as created by 2015 Wisconsin
4Act 90
, is amended to read:
SB537,2,7
1645.675 (2) (a) (intro.) On or after 5 p.m. central time on the business day
2following the date of appointment of a receiver, with regard to qualified financial
3contracts with an insurer that are subject to a proceeding under this chapter,
4Notwithstanding any other provision of this chapter, including any other provision
5permitting the modification of contracts,
no person may be stayed or prohibited from
6exercising any of the following rights, unless that person has received written notice
7that the contract has been sold or transferred under s. 645.33 (2) or 645.46 (9)
:
SB537,2,88 (End)
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