The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB588,1 1Section 1 . 551.102 (28) (bm) of the statutes is created to read:
SB588,3,32 551.102 (28) (bm) Does not include a funding agreement authorized under s.
3632.66.
SB588,2 4Section 2. 601.465 (3) (g) of the statutes is created to read:
SB588,3,65 601.465 (3) (g) Any information designated as confidential under s. 632.66 (2)
6(g), which is subject to the confidentiality provisions in s. 632.66 (2) (g).
SB588,3 7Section 3. 601.465 (3) (h) of the statutes is created to read:
SB588,3,118 601.465 (3) (h) Group capital calculation and liquidity stress test filings and
9any related information provided by an insurer under rules promulgated under s.
10617.13 (1), which are not subject to subch. II of ch. 19 and are subject only to the
11confidentiality provisions of s. 617.13 (2).
SB588,4
1Section 4. 601.48 (1m) of the statutes is created to read:
SB588,4,32 601.48 (1m) Accreditation. (a) The office shall maintain accreditation with
3the National Association of Insurance Commissioners.
SB588,4,114 (b) Notwithstanding s. 230.14, the commissioner may adopt minimum
5education and certification requirements for job classification levels that monitor the
6financial solvency of insurers as necessary to meet accreditation and best practice
7standards established by the National Association of Insurance Commissioners.
8Any minimum education and certification requirement adopted under this
9paragraph shall apply only to employees placed into the classification level after the
10requirement is adopted and may not apply to employees who were in that
11classification level prior to the adoption of the requirement.
SB588,5 12Section 5 . 601.64 (3) (c) of the statutes is amended to read:
SB588,4,2413 601.64 (3) (c) Forfeiture for violation of statute or rule. Whoever violates an
14insurance statute or rule or s. 149.13, 2011 stats., intentionally aids a person in
15violating an insurance statute or rule or s. 149.13, 2011 stats., or knowingly permits
16a person over whom he or she has authority to violate an insurance statute or rule
17or s. 149.13, 2011 stats., shall forfeit to the state not more than $1,000 for each
18violation, except that whoever violates an insurance statute or rule, intentionally
19aids a person in violating an insurance statute or rule, or knowingly permits a person
20over whom he or she has authority to violate an insurance statute or rule shall, if the
21violation specifically involves a consumer who is an adult at risk, as defined in s.
2255.01 (1e), or an individual who is at least 60 years of age, forfeit to the state not more
23than $5,000 for each violation
. If the statute or rule imposes a duty to make a report
24to the commissioner, each week of delay in complying with the duty is a new violation.
SB588,6
1Section 6. 601.954 (2) (f) (intro.) and 2. of the statutes, as created by 2021
2Wisconsin Act 73
, are consolidated, renumbered 601.954 (2) (f) and amended to read:
SB588,5,53 601.954 (2) (f) Exceptions for certain entities. This subsection does not apply
4to any of the following: 2. An entity that is described in 45 CFR 164.104 (a), if the
5entity complies with the requirements of 45 CFR part 164.
SB588,7 6Section 7. 601.954 (2) (f) 1. of the statutes is repealed.
SB588,8 7Section 8. 611.40 (1) of the statutes is amended to read:
SB588,5,128 611.40 (1) Meetings, notices, quorums and voting. Sections 180.0701 to
9180.0703, 180.0705, 180.0709, 180.0721 to 180.0727 and 180.1708 (3) apply to stock
10corporations. Each director of a stock corporation shall be elected by a plurality of
11the votes cast by the shares entitled to vote in the election at a meeting at which a
12quorum is present.
SB588,9 13Section 9 . 611.42 (1) of the statutes is amended to read:
SB588,5,1614 611.42 (1) General. Subject to this section and s. 611.53, ss. 181.0701 (1), (2),
15and (4) to (6)
, 181.0702 (1) to (3) and (5), 181.0705 (1) to (4), 181.0722 (1) to (3),
16181.0723, and 181.0727 apply to mutuals.
SB588,10 17Section 10. 611.42 (1b) of the statutes is created to read:
SB588,5,2118 611.42 (1b) Place of meetings. (a) A mutual may hold an annual, regular, or
19special meeting of policyholders in or outside this state at the place stated in or fixed
20in accordance with the bylaws. If no place is stated in or fixed in accordance with the
21bylaws, the mutual shall hold the annual meeting at its principal office.
SB588,5,2522 (b) Notwithstanding par. (a), a mutual's bylaws may authorize the board of
23directors, in its sole discretion, to determine that an annual, regular, or special
24meeting of policyholders may be held solely by means of remote communication as
25authorized under s. 611.426.
SB588,11
1Section 11. 611.42 (1e) (b) (intro.) of the statutes is amended to read:
SB588,6,62 611.42 (1e) (b) (intro.) The court may fix the time and place of the meeting or
3determine that the meeting shall be held solely by means of remote communication
4as provided under s. 611.426
. The court shall require that the meeting be called and
5conducted in accordance with the mutual's articles of incorporation and bylaws, in
6so far as possible, except that the court may do all of the following:
SB588,12 7Section 12. 611.42 (1g) of the statutes is created to read:
SB588,6,108 611.42 (1g) Notice of meetings. (a) When required. A mutual shall give notice
9of meetings of policyholders as provided in its bylaws or, if the bylaws are silent, in
10a manner that is fair and reasonable.
SB588,6,1411 (b) In general. A notice that conforms to the requirements of par. (c) is fair and
12reasonable. Except for matters referred to in par. (c) 2., other means of giving notice
13may also be fair and reasonable when all of the circumstances are considered.
14Section 181.0141 applies to notices provided under this subsection.
SB588,6,1615 (c) Notice safe harbor. Notice is fair and reasonable if all of the following
16conditions exist:
SB588,6,2217 1. The mutual notifies its policyholders of the date, time, and, if applicable,
18place of each annual, regular, and special meeting of policyholders not more than 60
19days and not less than 10 days, or, if notice is mailed by any type other than first class
20or registered mail, 30 days, before the meeting date. If the board of directors has
21authorized participation by means of remote communication under s. 611.426, the
22notice shall describe the means of remote communication to be used.
SB588,6,2523 2. Notice of an annual or regular meeting includes a description of any matter
24or matters that must be approved by the policyholders under s. 181.0723 (2),
25181.0831, 181.0873 (4), 181.1003, 181.1021, 181.1105, 181.1202, or 181.1401.
SB588,7,2
13. Notice of a special meeting includes a description of the matter or matters
2for which the meeting is called.
SB588,7,103 (d) Adjourned meetings. Unless the bylaws require otherwise, if an annual,
4regular, or special meeting of policyholders is adjourned to a different date, time, or
5place or will be held by a new means of remote communication, notice need not be
6given of the new date, time, place, or means of remote communication if the new date,
7time, place, or means of remote communication is announced at the meeting before
8adjournment. If a new record date for the adjourned meeting is or must be fixed
9under s. 181.0707, notice of the adjourned meeting must be given under this
10subsection to the policyholders of record as of the new record date.
SB588,13 11Section 13. 611.426 of the statutes is created to read:
SB588,7,16 12611.426 Remote participation in policyholder meetings. (1) If
13authorized by the board of directors in its sole discretion, and subject to sub. (2) and
14any guidelines and procedures adopted by the board of directors, policyholders and
15proxies of policyholders not physically present at a meeting of policyholders may
16participate in the meeting by means of remote communication.
SB588,7,21 17(2) If policyholders and proxies of policyholders participate in a meeting of
18policyholders by means of remote communication, the participating policyholders
19and proxies of policyholders shall be considered to be present in person and
20permitted to vote at the meeting, whether the meeting is held at a designated place
21or solely by means of remote communication, if all of the following apply:
SB588,7,2422 (a) The mutual has implemented reasonable measures to verify that each
23person considered to be present and permitted to vote at the meeting by means of
24remote communication is a policyholder or proxy of a policyholder.
SB588,8,4
1(b) The mutual has implemented reasonable measures to provide policyholders
2and proxies of policyholders a reasonable opportunity to participate in the meeting
3and to vote on matters submitted to the policyholders, including an opportunity to
4read or hear the proceedings of the meeting concurrently with the proceedings.
SB588,8,75 (c) The mutual maintains a record of voting and other actions by any
6policyholder or proxy of a policyholder that votes or takes another action at the
7meeting by means of remote communication.
SB588,14 8Section 14. 617.13 of the statutes is created to read:
SB588,8,13 9617.13 Rules requiring group capital calculations and liquidity stress
10tests. (1)
The commissioner shall promulgate rules requiring certain insurers, as
11determined under the rules, to report their group capital calculations and liquidity
12stress tests, including the form of the reports and the manner and process for filing
13the reports.
SB588,8,21 14(2) Sections 19.31 to 19.37 do not apply to the filings made under sub. (1) or to
15any information submitted to the commissioner in connection with the filings. The
16filings made under sub. (1) are not subject to subpoena or discovery and may not be
17admissible in evidence in any private civil action. The commissioner shall only share
18a filing made under sub. (1), and any information requested in connection with the
19filing, with the insurance regulatory authorities of states having statutes or
20regulations substantially similar to this section and who have agreed in writing not
21to disclose the information.
SB588,15 22Section 15. 625.03 (1m) (f) of the statutes is created to read:
SB588,8,2323 625.03 (1m) (f) Funding agreements authorized under s. 632.66.
SB588,16 24Section 16 . 632.62 (1) (b) 1. of the statutes is amended to read:
SB588,9,2
1632.62 (1) (b) 1. Paid-up, temporary, pure endowment insurance and annuity
2settlements provided in exchange for lapsed, surrendered or matured policies;.
SB588,17 3Section 17 . 632.62 (1) (b) 2. of the statutes is amended to read:
SB588,9,54 632.62 (1) (b) 2. Annuities beginning within one year of the making of the
5contract; and.
SB588,18 6Section 18. 632.62 (1) (b) 4. of the statutes is created to read:
SB588,9,77 632.62 (1) (b) 4. Funding agreements authorized under s. 632.66.
SB588,19 8Section 19 . 632.66 of the statutes is renumbered 632.66 (1).
SB588,20 9Section 20. 632.66 (2) of the statutes is created to read:
SB588,9,1410 632.66 (2) (a) In this subsection, “funding agreement” means an annuity
11without life contingencies that is an agreement for an insurer to accept and
12accumulate funds and to make one or more payments at future dates in fixed or
13variable amounts, or both, that are not based on mortality or morbidity
14contingencies.
SB588,9,1715 (b) A domestic insurer that holds a valid certificate of authority to transact the
16business of life insurance and annuities in this state may issue a funding agreement
17if all of the following conditions are met:
SB588,9,1918 1. The domestic insurer's board of directors, or an authorized committee of the
19board, approves the domestic insurer's plan relating to funding agreements.
SB588,9,2420 2. The commissioner determines that the issuance of funding agreements by
21the domestic insurer is not adverse to the interests of the policyholders of the
22domestic insurer, except that no determination from the commissioner is required
23if the domestic insurer has more than $200 billion in admitted assets. In making a
24determination under this subdivision, the commissioner shall consider the domestic

1insurer's specific policy objective and strategies, investment and risk management
2guidelines, and aggregate maximum limits on the funding agreement business.
SB588,10,53 3. No amounts may be guaranteed or credited under the funding agreement
4except upon reasonable assumptions as to investment income and expenses and on
5a basis equitable to all holders of a given class of the funding agreement.
SB588,10,76 4. The domestic insurer complies with the form filing requirements under s.
7631.20 with respect to the funding agreement.
SB588,10,98 (c) The issuance or delivery of a funding agreement by an insurer in this state
9shall constitute doing an insurance business herein.
SB588,10,1210 (d) A domestic insurer may offer funding agreements directly through the
11domestic insurer and is not required to use licensed intermediaries when marketing
12funding agreements.
SB588,10,1513 (e) Amounts paid to the domestic insurer, and proceeds applied under optional
14modes of settlement, under funding agreements may be allocated to one or more
15separate accounts pursuant to s. 611.24.
SB588,10,1816 (f) Notwithstanding ch. 551, the commissioner has sole authority to regulate
17the issuance and sale of funding agreements, including the persons selling funding
18agreements on behalf of insurers.
SB588,10,2219 (g) Notwithstanding s. 601.465 (1m) and subch. II of ch. 19, any materials
20submitted to the commissioner pursuant to an approval under par. (b) 2. or pursuant
21to a request from the commissioner related to a funding agreement shall be held
22confidential pursuant to s. 601.465 (1n).
SB588,10,2423 (h) The commissioner may promulgate rules as necessary for the
24implementation of this subsection.
SB588,21 25Section 21 . 635.05 (7) of the statutes is repealed.
SB588,22
1Section 22. 635.12 of the statutes is repealed.
SB588,23 2Section 23 . 645.68 (3) of the statutes is amended to read:
SB588,11,113 645.68 (3) Loss claims. All claims under policies for losses incurred, including
43rd-party claims and federal, state, and local government claims, except the first
5$200 of losses otherwise payable to any claimant under this subsection other than
6the federal government. All claims under life insurance and annuity policies,
7whether for death proceeds, annuity proceeds, or investment values, shall be treated
8as loss claims. All amounts payable under funding agreements, as defined in s.
9632.66 (2) (a), whether for principal or interest, shall be treated as loss claims.

10Claims may not be cumulated by assignment to avoid application of the $200
11deductible provision.
SB588,24 12Section 24. 646.01 (1) (b) 21. of the statutes is created to read:
SB588,11,1613 646.01 (1) (b) 21. A policy issued by an insurer to the federal government or an
14agency of the federal government for the purpose of providing health insurance
15coverage to enrollees under the federal employee health benefit plan program under
165 USC 8901 et seq.
SB588,25 17Section 25. 646.01 (1) (b) 22. of the statutes is created to read:
SB588,11,1818 646.01 (1) (b) 22. Funding agreements authorized under s. 632.66.
SB588,26 19Section 26 . 646.13 (2) (g) of the statutes is amended to read:
SB588,11,2520 646.13 (2) (g) Sue and be sued, make contracts, including a contract with an
21insured for administration and payment of claims for which the insured is
22responsible,
and borrow money necessary to carry out its duties, including money
23with which to pay claims under s. 646.31 or to continue coverage under s. 646.35.
24The fund may offer as security for such loans its claims against the liquidator or its
25power to levy assessments under this chapter.
SB588,27
1Section 27. 646.325 (2) (intro.) of the statutes is amended to read:
SB588,12,62 646.325 (2) Recovery from certain insureds and affiliates. (intro.) Except
3as provided in sub. (3), the fund may recover from a person the costs and expenses
4incurred in administering or defending a claim against the person by a 3rd party and
5the amount of any claim paid on behalf of the person to a 3rd party, if all of the
6following conditions are satisfied:
SB588,28 7Section 28 . 646.325 (2) (a) (intro.) of the statutes is amended to read:
SB588,12,98 646.325 (2) (a) (intro.) The person on whose behalf the claim was administered,
9defended, or paid is any of the following:
SB588,29 10Section 29. 646.325 (2) (a) 3. of the statutes is created to read:
SB588,12,1111 646.325 (2) (a) 3. A person excluded under s. 646.01 (1) (b) 18.
SB588,30 12Section 30 . 646.51 (3) (ar) (intro.) and 2. of the statutes are consolidated,
13renumbered 646.51 (3) (ar) and amended to read:
SB588,12,2314 646.51 (3) (ar) Disability. Except as provided in par. (c), with respect to
15disability insurance policies, including policies issued by health maintenance
16organization insurers, assessments shall be calculated as follows: 2. For
17assessments authorized by the board on or after November 13, 2015,
as a percentage
18of premium written in this state by each insurer in the classes protected by the
19accounts for the year preceding the year in which the assessment is authorized by
20the board. If the assessment data for the year immediately preceding the year in
21which the assessment is authorized by the board is not available when the
22assessment is called, the fund may use the assessment data for the most recent year
23for which data is available.
SB588,31 24Section 31 . 646.51 (3) (ar) 1. of the statutes is repealed.
SB588,32 25Section 32 . 655.27 (3) (b) 2. of the statutes is amended to read:
SB588,13,6
1655.27 (3) (b) 2. With respect to fees paid by physicians, the commissioner shall
2provide for no fewer than 4 payment classifications, based upon the amount of
3surgery performed and the risk of diagnostic and therapeutic services provided or
4procedures performed, by reference to the applicable Insurance Services Office, Inc.,
5codes for specialties and types of practice that are similar in the degree of exposure
6to loss
.
SB588,33 7Section 33 . 655.27 (3) (bt) of the statutes is amended to read:
SB588,13,238 655.27 (3) (bt) Report to joint committee on finance. Annually, no later than
9April 1, the commissioner shall send to the cochairpersons of the joint committee on
10finance a report detailing the proposed fees and payment classifications set for the
11next fiscal year under par. (b) and under s. 655.61 (1). If, within 14 working days after
12the date that the commissioner submits the report, the cochairpersons of the
13committee notify the commissioner that the committee has scheduled a meeting for
14the purpose of reviewing the proposed fees and payment classifications, the
15commissioner may not impose the fees or payment classifications until the
16committee approves the report. If the cochairpersons of the committee do not notify
17the commissioner, the commissioner may impose the proposed fees and payment
18classifications
. In addition to any other method prescribed by rule for advising
19health care providers of the amount of the fees and payment classifications, the
20commissioner shall post the fees and payment classifications set under par. (b) for
21the next fiscal year on the office's Internet site and the director of state courts shall
22post the fees set under s. 655.61 (1) for the next fiscal year on the mediation fund's
23Internet site.
SB588,34 24Section 34 . 655.275 (2) of the statutes is amended to read:
SB588,14,11
1655.275 (2) Appointment. The board of governors shall appoint the members
2of the council. Section 15.09, except s. 15.09 (4) and (8), does not apply to the council.
3The board of governors shall designate the chairperson, who shall be a physician, the
4vice chairperson, and the secretary of the council and the terms to be served by
5council members. The council shall consist of 5 or 7 persons, not more than 3 of whom
6are physicians who are licensed and in good standing to practice medicine in this
7state and one of whom is a nurse anesthetist who is licensed and in good standing
8to practice nursing in this state. The chairperson or another peer review council
9member designated by the chairperson shall serve as an ex officio nonvoting member
10of the medical examining board and may attend meetings of the medical examining
11board, as appropriate.
SB588,35 12Section 35. Effective dates. This act takes effect on the day after publication,
13except as follows:
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