601.64(5)
(5) Revocation, suspension and limitation of licenses. Whenever a licensee of the office other than an insurer, a motor club, an adjuster or an insurance intermediary persistently or substantially violates
chs. 600 to
646 or an order of the commissioner under
s. 601.41 (4), or if the licensee's methods and practices in the conduct of business endanger, or financial resources are inadequate to safeguard, the legitimate interests of customers and the public, the commissioner may, after a hearing, in whole or in part revoke, suspend or limit the license.
601.64 Annotation
Legislative Council Note on sub. (5), 1975: This amendment removes insurance intermediaries from the purview of the subsection. Under this act, revocation of an intermediary's license will be governed by s. 628.10 (2). [Bill 16-S]
601.65
601.65
Marketing firm forfeitures. 601.65(1)
(1) In this section "firm" means a person that markets insurance but does not include an insurer.
601.65(2)
(2) A firm is liable for a forfeiture of not more than $1,000 for each violation by an insurance agent of a provision of, a rule promulgated under or an order issued under
chs. 600 to
655 if the violation is in connection with an insurance policy or group certificate obtained or to be obtained through or from the firm and if any of the following applies:
601.65(2)(a)
(a) The firm regularly utilizes the insurance agent to market insurance policies or group certificates.
601.65(2)(b)
(b) The primary insurance marketing activities of the insurance agent are in connection with insurance policies or group certificates obtained or to be obtained through or from the firm.
601.65(2)(c)
(c) The insurance agent is employed by or is under contract with the firm to market insurance policies or group certificates.
601.65(3)
(3) If a provision of, a rule promulgated under or an order issued under
chs. 600 to
655 imposes a duty to submit a periodic or recurring report to the commissioner, each week of delay in submitting the report constitutes a separate violation. Each day of continued violation of an order issued under
s. 601.41 (4) constitutes a separate violation.
601.65 History
History: 1985 a. 29.
601.71
601.71
Enforcement of policyholder rights. When the commissioner is satisfied that any nondomestic insurer which no longer has a certificate of authority in this state does or omits to do any act whereby the rights of policyholders who are residents of this state, or who hold contracts issued or delivered in this state, are adversely affected, or whereby its ability to carry out its contracts with those policyholders is impaired, the commissioner may, with the agreement of the attorney general, bring an action in the name of the state on behalf of all policyholders so situated for the purpose of enforcing their rights. The attorney general shall act as attorney for the state in the action and the expenses shall be borne as in other civil actions in behalf of the state. Upon service of the complaint the insurer shall file with the commissioner the names and addresses of all policyholders so situated. A notice of the action shall be mailed to every such policyholder either by the commissioner or by the insurer, as the commissioner determines. Any policyholder affected by the action may intervene.
601.71 History
History: 1979 c. 102.
601.715
601.715
Registered agent for service of process. 601.715(1)(1) Every authorized insurer shall continuously maintain in this state a registered agent for service of process, notice or demand on the insurer. The authorized insurer shall file the name and address of the registered agent with the commissioner. The registered agent may be any of the following:
601.715(1)(b)
(b) A domestic corporation, nonstock corporation or limited liability company incorporated or organized in this state with a business office in this state.
601.715(1)(c)
(c) A foreign corporation or limited liability company authorized to transact business in this state with a business office in this state.
601.715(2)(a)(a) An authorized insurer may change its registered agent by delivering to the commissioner for filing a statement of registered agent change that is signed by an officer of the insurer and that includes all of the following information:
601.715(2)(a)1.
1. The name and home office address of the authorized insurer.
601.715(2)(a)3.
3. The complete address of the registered agent, as changed.
601.715(2)(a)4.
4. Any other information that the commissioner may require.
601.715(2)(b)
(b) An authorized insurer may change its registered agent no more than one time per year. Any change of registered agent is effective on January 1 of the year following the delivery of the statement under
par. (a).
601.715(3)
(3) A registered agent of an authorized insurer may change its registered agent address by doing all of the following:
601.715(3)(a)
(a) Notifying in writing the authorized insurer for which the registered agent is acting.
601.715(3)(b)
(b) Delivering to the commissioner for filing a statement that includes all of the following:
601.715(3)(b)1.
1. The name and home office address of the authorized insurer for which the registered agent is acting.
601.715(4)(a)(a) A registered agent of an authorized insurer may resign by signing and delivering to the commissioner for filing a statement of resignation that includes all of the following information:
601.715(4)(a)1.
1. The name and home office address of the authorized insurer for which the registered agent is acting.
601.715(4)(b)
(b) After filing the statement, the commissioner shall mail a copy to the authorized insurer under
par. (a) 1.
601.715(4)(c)
(c) The resignation is effective on the earlier of the following:
601.715(4)(c)1.
1. Sixty days after the commissioner receives the statement of resignation for filing.
601.715(4)(c)2.
2. The date on which the appointment of a successor registered agent is effective.
601.715(4m)
(4m) Service on an insurer under this section shall be made by personally serving the process, notice or demand on the registered agent of the insurer. In lieu of delivery to the registered agent, the process, notice or demand may be left at the office of the registered agent with the person who is apparently in charge of the office.
601.715(5)
(5) If an authorized insurer has no registered agent for service of process in this state or if the registered agent cannot with reasonable diligence be served, substituted service may be made on the commissioner under
ss. 601.72 and
601.73. If substituted service is made on the commissioner, an affidavit attesting that the authorized insurer has no registered agent or that the registered agent could not with reasonable diligence be served shall be attached to the process, notice or demand that is served.
601.715(6)
(6) Except as provided in
sub. (5), this section does not limit or affect the right to serve summons, notice, orders, pleadings, demands or other process upon an authorized insurer in any other manner provided by law.
601.715 History
History: 1995 a. 396.
601.72
601.72
Service of process through state officer. 601.72(1)(1)
General. Under procedures specified in
s. 601.73, the commissioner is by law constituted attorney, except in cases in which the proceeding is to be brought by the state against an insurer or intermediary other than a risk retention group or risk purchasing group, in which event the department of financial institutions is by law constituted attorney, to receive service of summons, notices, orders, pleadings and all other legal process relating to any court or administrative agency in this state for all of the following:
601.72(1)(a)
(a)
Authorized insurers. All insurers authorized to do business in this state, while authorized to do business in this state, and thereafter in any proceeding arising from or related to any transaction having any connection with this state, provided the requirements under
s. 601.715 (5) are satisfied.
601.72(1)(b)
(b)
Surplus lines insurers. All insurers as to any proceeding arising out of any contract that is permitted by
s. 618.41, or out of any certificate, cover note or other confirmation of such insurance.
601.72(1)(c)
(c)
Unauthorized insurers. All insurers or other persons doing an unauthorized insurance business in this state, including but not limited to risk purchasing groups, as to any proceeding arising out of the unauthorized transaction.
601.72(1)(d)
(d)
Risk purchasing groups and nonresident intermediaries. All risk purchasing groups or nonresident intermediaries as to any proceeding arising out of insurance activities within this state or out of insurance activities related to policies on risks within this state.
601.72(2)
(2) Appointment of attorney. Except as provided in
sub. (2m), every licensed insurer by applying for and receiving a certificate of authority, every surplus lines insurer by entering into a contract subject to the surplus lines law, and every unauthorized insurer by doing an insurance business in this state, is deemed to have irrevocably appointed the commissioner and department of financial institutions as the insurer's attorneys in accordance with
sub. (1).
601.72(2m)
(2m) Risk retention groups and risk purchasing groups. A risk retention group or risk purchasing group may not do an insurance business or engage in any insurance activity in this state until it registers with the commissioner and designates the commissioner as its agent for the purposes described in
sub. (1). The commissioner may prescribe the form of registration under this subsection. If a risk retention group or risk purchasing group fails to designate the commissioner as required by this subsection, the commissioner is appointed agent for the risk retention group or risk purchasing group as provided in
sub. (2).
601.72(3)
(3) Others affected. The commissioner and department of financial institutions shall also be attorneys for the executors, administrators or personal representatives, receivers, trustees or other successors in interest of the persons specified in
sub. (1).
601.72(4)
(4) Fees. Litigants serving process on the commissioner under this section shall pay the fees specified in
s. 601.31 (1) (p).
601.72(5)
(5) Ordinary means of service. The right to substituted service under this section does not limit the right to serve summons, notice, orders, pleadings, demands or other process upon any person in any manner provided by law.
601.72 History
History: 1995 a. 27,
396.
601.72 Annotation
Legislative Council Note on sub. (1) (d), 1975: Under s. 628.04 (created by this act), Wisconsin takes an important step in liberalizing prevailing licensing laws by not requiring residence for unrestricted Wisconsin intermediaries' licenses. As a correlative measure, however, the reach of the Wisconsin courts and administrative agencies is extended to all such nonresidents. [Bill 16-S]
601.72 Annotation
The commissioner has the duty to accept service for all insurers, but does not have a duty to determine whether an insurer is a party to the action in which service is sought. Davies v. Heiman, 186 W (2d) 370, 520 NW (2d) 917 (Ct. App. 1994).
601.73
601.73
Procedure for service of process through state officer. 601.73(1)(1)
Requirements for effective service. Service upon the commissioner or department of financial institutions under
s. 601.72 is service on the principal, if:
601.73(1)(a)
(a) Two copies of the process are left in the hands or office of the commissioner or department of financial institutions respectively; and
601.73(1)(b)
(b) The commissioner or department of financial institutions mails a copy of the process to the person served according to
sub. (2) (b).
601.73(2)(a)(a)
Records. The commissioner and department of financial institutions shall give receipts for and keep records of all process served through them.
601.73(2)(b)
(b) Process mailed. The commissioner or department of financial institutions shall send immediately by certified mail to the person served, at the person's last-known principal place of business, residence or post-office address or at an address designated in writing by the person, one copy of any process received and shall retain the other copy.
601.73(2)(c)
(c)
Default judgment. No plaintiff or complainant is entitled to a judgment by default in any proceeding in which process is served under this section and
s. 601.72 until the expiration of 20 days from the date of mailing of the process under
par. (b).
601.73(3)
(3) Proof of service. A certificate by the commissioner or the department of financial institutions, showing service made upon the commissioner or department of financial institutions, and attached to a copy of the process presented for that purpose is sufficient evidence of the service.
601.73 Annotation
Legislative Council Note, 1979: [Repeal of (1) (c)] In its original form, the procedures of ss. 601.72 and 601.73 for substituted service of process through the commissioner or secretary of state required, in s. 601.73 (1) (b), the serving party to also mail a copy of the process to the person served, as additional assurance that this substituted service would provide actual notice. Sub. (1) (c) then required filing of an affidavit of compliance with (1) (a) and (b) to make the service effective. It may have been cumbersome, but it was logical. Some time later, the requirement of mailing by the serving party was eliminated by an amendment (ch. 189, laws of 1971) that did not go through the Insurance Laws Revision Committee, and did not make the necessary collateral changes. It makes little sense for the serving party to have to provide an affidavit as to what the public official does under (1) (b). Moreover, under (1) (b) the service is not complete anyway unless the public official does perform the statutory duty. Thus, the affidavit seems unnecessary and, because service is not complete without mailing by the public official, no further requirement seems needed. The reasonable solution, therefore, is to repeal (1) (c). [Bill 146-S]
FIRE DEPARTMENT DUES
601.93
601.93
Payment of dues. 601.93(1)(1) Any insurer doing a fire insurance business in this state shall pay fire department dues equal to 2% of the amount of all premiums which, during the preceding calendar year, have been received by, or have been agreed to be paid to, the company for insurance against loss by fire, including insurance on property exempt from taxation.
601.93(2)
(2) Every insurer doing a fire insurance business in this state shall, before March 1 in each year, file with the commissioner a statement, showing the amount of premiums upon fire insurance due for the preceding calendar year. Return premiums may be deducted in determining the premium on which the fire department dues are computed. Payments of quarterly instalments of the total estimated payment for the then current calendar year under this subsection are due on or before April 15, June 15, September 15 and December 15. On March 1 the insurer shall pay any additional amounts due for the preceding calendar year. Overpayments will be credited on the amount due April 15. The commissioner shall, prior to May 1 each year, report to the department of commerce the amount of dues paid under this subsection and to be paid under
s. 101.573 (1).
601.93(3)
(3) In this section, "fire insurance" includes insurance against loss of or damage to:
601.93(3)(a)
(a) Notes, acceptances or any other valuable papers or documents, resulting from any cause, except while in the mail or in the custody or possession of and being transported by any carrier for hire; and
601.93(3)(b)
(b) Personal property of individuals when written under an all-risk type of policy commonly known as the "personal property floater", whenever these risks are written in conjunction with insurance against burglary or theft.
601.935(1)(1)
Late payment. An insurer that fails to make quarterly payments under
s. 601.93 (2) of at least 25% of either the total fire dues paid for the previous calendar year or 80% of the actual fire dues for the current calendar year is liable, in addition to the amount due, for interest of 1.5% of the amount due and unpaid for each month or part of a month that the amount due, together with any interest, remains unpaid.
601.935(2)
(2) Negligence. An insurer that fails to pay an amount due, or file a statement required, under
s. 601.93 (2), unless the insurer shows that the failure is due to reasonable cause and not due to wilful neglect, is liable for the greater of the following amounts:
601.935(2)(b)
(b) Five percent of the amount due for each month or fraction of a month during which the failure continues, but not more than 25% of the amount due.
601.935 History
History: 1987 a. 166.
